The Hindu Business Line : Infrastructure must to draw BPO investments: Study

THE National Capital Region (Gurgaon, Delhi and Noida), Bangalore and Mumbai are the top three destinations for the ITES industry housing the maximum number of BPO companies in the country, according to a Nasscom-KPMG study on `Attractiveness of key locations in India for IT-enabled services (ITES).'

Releasing the findings of the study at the Nasscom Leadership Forum 2004, Mr Sunil Mehta, Vice-President, Nasscom, said the study aimed to provide inputs to State Governments to improve the value proposition in order to attract ITES firms.

The study covered 13 clusters across 10 States including Ahmedabad-Gandhinagar, Pune, Thiruvananthapuram and Vishakapatnam. These account for approximately 85 per cent of the country's IT/ITES exports.

Some key findings of the study reveal that States can no longer rely on policy incentives as a key differentiator. Investments on infrastructure and willingness to facilitate new investments would enable them to attract ITES companies. Moreover,

States would need to balance their efforts related to infrastructure and human resource requirements for ITES to attract global companies.

According to the study, some factors that would influence the decision of ITES firms are proximity to good human and infrastructure resources, relations with local Government and business continuity requirements such as geo-political risk management through distant locations.

While the NCR housed 103 BPO companies, Bangalore has 65 firms, followed by Mumbai with 59 BPO entities. Other regions like the Hyderabad-Secunderabad cluster accommodates 43 firms while Chennai has 34 firms and the Chandigarh-Mohali cluster 12 firms. Upcoming BPO destinations include Pune, Kolkata, Kochi, Ahmedabad-Gandhinagar and Ghaziabad, the study reveals.

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