The Indian IT Outsourcing Company today owe their success as one the leading software development companies in the world to its enormous pool of skilled software professionals. The sprawling urban centers like Bangalore, Hyderabad, Delhi, Mumbai, Gurgaon and Nodia have earned India worldwide recognition for its software industry and made it global software outsourcing hub.
However in the recent years explosion in the human population in these cities has overburdened the infrastructure. The tier 2 cities today face growing challenges of crumbling infrastructure, higher living and telecommunication costs, higher attrition rates, increased competition from foreign offshore centers, terrorism threats and decrease in quality of life. These factors are hurting the Indian software industry on whole because these mega cities are the nerve centers of the Indian software outsourcing industry.
The answer lies in looking beyond the IT havens to two –tier cities, which offer Indian IT Outsourcing Company ample room comfortably accommodate their IT infrastructure needs in a cost effective manner. Two–tier cities like Pune , Chandigarh, Ahmedabad, Jaipur, Chennai, Rajkot and others provide a great opportunity to for the Indian software outsourcing companies to set up their development centers at reduced infrastructure costs. These cities have the requisite infrastructure and good colleges that consistently churn out talented workforce every year. Compared to Tier-I cities like Bangalore, Mumbai and Delhi the IT development cost are very less because of cheaper living costs and availability of the skilled workforce. The increasing population in Megacities has pushed up the living cost of the employees which has naturally increased the IT development costs of the IT Outsourcing Company.
The recent passage of anti-outsourcing bill by the US Senate will definitely hurt the Indian IT outsourcing business. The Indian outsourcing companies will now have to rely more on offshore outsourcing model to get around this legislation. The increased competition from other outsourcing destinations like China, Philippines, countries Latin America and Eastern Europe is also putting pressure on the Indian IT Outsourcing Company to look beyond Tier cities like Bangalore, Delhi, and Mumbai to the greener pastures of Tier 2 cities.
However the inspite of promises that Tier 2 cities hold for the IT Outsourcing Company, lot of work needs to be done yet to bring them on the world IT map. The infrastructure development is cheap but such cities are still prone to problems like improper infrastructure support services, problematic telecommunication connectivity, lack of IT parks that offer tax benefits, shortage of senior level and middle management employees.
The Indian Government should focus more on infrastructure development of the tier 2 cities and offer tax benefits to the Indian IT Outsourcing Company to invest there. The software outsourcing companies will have to pay handsome salaries to the skilled and innovative managers relocate them from the tier 1 to tier 2 city. This, however in the long run this will prove beneficial because the overall development costs will come down, considerably.
This will also be a blessing in disguise for the Tier 1 cities as it will take off some burden from its overburdened infrastructure. Thus proper development of tier 2 cities will certainly benefit the Indian software outsourcing industry and help it to retain its present number one spot in the world for long time to come.
However in the recent years explosion in the human population in these cities has overburdened the infrastructure. The tier 2 cities today face growing challenges of crumbling infrastructure, higher living and telecommunication costs, higher attrition rates, increased competition from foreign offshore centers, terrorism threats and decrease in quality of life. These factors are hurting the Indian software industry on whole because these mega cities are the nerve centers of the Indian software outsourcing industry.
The answer lies in looking beyond the IT havens to two –tier cities, which offer Indian IT Outsourcing Company ample room comfortably accommodate their IT infrastructure needs in a cost effective manner. Two–tier cities like Pune , Chandigarh, Ahmedabad, Jaipur, Chennai, Rajkot and others provide a great opportunity to for the Indian software outsourcing companies to set up their development centers at reduced infrastructure costs. These cities have the requisite infrastructure and good colleges that consistently churn out talented workforce every year. Compared to Tier-I cities like Bangalore, Mumbai and Delhi the IT development cost are very less because of cheaper living costs and availability of the skilled workforce. The increasing population in Megacities has pushed up the living cost of the employees which has naturally increased the IT development costs of the IT Outsourcing Company.
The recent passage of anti-outsourcing bill by the US Senate will definitely hurt the Indian IT outsourcing business. The Indian outsourcing companies will now have to rely more on offshore outsourcing model to get around this legislation. The increased competition from other outsourcing destinations like China, Philippines, countries Latin America and Eastern Europe is also putting pressure on the Indian IT Outsourcing Company to look beyond Tier cities like Bangalore, Delhi, and Mumbai to the greener pastures of Tier 2 cities.
However the inspite of promises that Tier 2 cities hold for the IT Outsourcing Company, lot of work needs to be done yet to bring them on the world IT map. The infrastructure development is cheap but such cities are still prone to problems like improper infrastructure support services, problematic telecommunication connectivity, lack of IT parks that offer tax benefits, shortage of senior level and middle management employees.
The Indian Government should focus more on infrastructure development of the tier 2 cities and offer tax benefits to the Indian IT Outsourcing Company to invest there. The software outsourcing companies will have to pay handsome salaries to the skilled and innovative managers relocate them from the tier 1 to tier 2 city. This, however in the long run this will prove beneficial because the overall development costs will come down, considerably.
This will also be a blessing in disguise for the Tier 1 cities as it will take off some burden from its overburdened infrastructure. Thus proper development of tier 2 cities will certainly benefit the Indian software outsourcing industry and help it to retain its present number one spot in the world for long time to come.
0 comments:
Post a Comment