In their bid to lower their operating costs, several tech companies have been toying with the thought of setting up centres in inner cities that have an engineering tradition like Coimbatore, Belgaum and Trichy, but these efforts are just not getting off the ground.
Almost every software engineering graduate still considers Bangalore as the one and only destination for his or her career to flourish despite the myriad infrastructure and political problems associated with the city. At the end of the day, any software resume is enriched by the very mention of Bangalore in it as the city continues to be perceived as the only centre of excellence in information technology just as Detroit is for automobiles.
Politicians and strategists of other states, primarily Maharashtra and West Bengal, are attempting to position Pune and Kolkata as credible alternatives to Bangalore, but software engineers are simply not buying this hypothesis even though some gullible voters have bought this story during the last West Bengal state elections.
Those familiar with the software industry will realise that in the US, only the Silicon Valley is identified with excellence in software, despite IBM and EDS being located away from this region. It is no different in India as the general eco-system in and around Bangalore was more conducive to the growth of the IT industry than any other Indian city.
The worrying aspect of this phenomenon is that when companies like Apple, Sykes and Powergen withdraw from Bangalore, they completely pull out of India without considering any other Indian city, regardless of the lower cost structure. My gut feel is that Pune and Kolkata will fail to bridge the gap with Bangalore regardless of the southern city’s chaotic civic situation.
Branding Cities
In a competitive economy where almost every other Indian state is pitching its core competencies to attract both domestic and foreign investment, major cities are acquiring an element of branding. Though Bangalore is readily associated with technology offshoring and its relatively generous weather and permissive culture, it is also being progressively viewed as an expensive and excessively corrupt city.
Mumbai continues be the financial Mecca, though last year’s rain-related havoc has dented the city’s potential of emerging as a truly international financial hub. Chennai, according to a senior foreign risk analyst, is considered both technology and manufacturing-friendly, but at the same time, much too conservative.
Hyderabad is perceived to have probably the best civic infrastructure, but the quality of its talent remains a suspect given the mass faking of educational degrees in this city. NCR is undisputedly the voice based contact centre capital of India where women continue to be at risk. Pune is trying to emerge as a serious contender to Bangalore, but its civic infrastructure and work ethic (long siestas in the afternoon) leave a lot to be desired.
Kolkata is most compelling in terms of costs, but potential labour issues continue to haunt all investors. Kochi is no different from Kolkata especially under the new dispensation, which is known to be labour rather than market-friendly. Emerging cities like Chandigarh, Coimbatore and Vizag need to take a cue from these perceptions and position themselves differently.
Lower costs are a given in these cities, but to be able to wrest the advantage from the big boys, the administrators of these cities need to delve deeper to figure out some unique USPs (unique selling proposition) for themselves. Focusing on their comparatively safer law and order situation could be a smart starting point.
Almost every software engineering graduate still considers Bangalore as the one and only destination for his or her career to flourish despite the myriad infrastructure and political problems associated with the city. At the end of the day, any software resume is enriched by the very mention of Bangalore in it as the city continues to be perceived as the only centre of excellence in information technology just as Detroit is for automobiles.
Politicians and strategists of other states, primarily Maharashtra and West Bengal, are attempting to position Pune and Kolkata as credible alternatives to Bangalore, but software engineers are simply not buying this hypothesis even though some gullible voters have bought this story during the last West Bengal state elections.
Those familiar with the software industry will realise that in the US, only the Silicon Valley is identified with excellence in software, despite IBM and EDS being located away from this region. It is no different in India as the general eco-system in and around Bangalore was more conducive to the growth of the IT industry than any other Indian city.
The worrying aspect of this phenomenon is that when companies like Apple, Sykes and Powergen withdraw from Bangalore, they completely pull out of India without considering any other Indian city, regardless of the lower cost structure. My gut feel is that Pune and Kolkata will fail to bridge the gap with Bangalore regardless of the southern city’s chaotic civic situation.
Branding Cities
In a competitive economy where almost every other Indian state is pitching its core competencies to attract both domestic and foreign investment, major cities are acquiring an element of branding. Though Bangalore is readily associated with technology offshoring and its relatively generous weather and permissive culture, it is also being progressively viewed as an expensive and excessively corrupt city.
Mumbai continues be the financial Mecca, though last year’s rain-related havoc has dented the city’s potential of emerging as a truly international financial hub. Chennai, according to a senior foreign risk analyst, is considered both technology and manufacturing-friendly, but at the same time, much too conservative.
Hyderabad is perceived to have probably the best civic infrastructure, but the quality of its talent remains a suspect given the mass faking of educational degrees in this city. NCR is undisputedly the voice based contact centre capital of India where women continue to be at risk. Pune is trying to emerge as a serious contender to Bangalore, but its civic infrastructure and work ethic (long siestas in the afternoon) leave a lot to be desired.
Kolkata is most compelling in terms of costs, but potential labour issues continue to haunt all investors. Kochi is no different from Kolkata especially under the new dispensation, which is known to be labour rather than market-friendly. Emerging cities like Chandigarh, Coimbatore and Vizag need to take a cue from these perceptions and position themselves differently.
Lower costs are a given in these cities, but to be able to wrest the advantage from the big boys, the administrators of these cities need to delve deeper to figure out some unique USPs (unique selling proposition) for themselves. Focusing on their comparatively safer law and order situation could be a smart starting point.