The Hindu Business Line : Chennai tops in 4 out of 8 parameters: Nasscom

Chennai, July 3 Chennai leads a list of 50 cities in the country in four out of eight parameters in a Nasscom-AT Kearney study conducted recently to assess cities for investments in the IT and ITES sector.

Nasscom, the apex body for the IT and ITES industry, on Thursday released the detailed findings of the study, stressing the importance of developing cities other than those currently attracting investments.

Chennai scores the highest in government support, infrastructure and location attractiveness (for both IT and BPO). Mumbai scores the highest in the list for business environment and skill attractiveness for BPO, while Bangalore tops in skill attractiveness for IT. Nashik leads the list for ‘social and living environment’.

Addressing the media, Mr Som Mittal, President, Nasscom, said that the industry is set to grow from a headcount of about two million people now to about eight million in 10 years. “If we do not focus on development of tier-II and tier-III centres now, we could end up with a concentration of development only in centres such as the National Capital Region, Chennai and Bangalore.” He added that currently 90 per cent of the industry’s workforce is located in such centres. Presenting two scenarios, he said, “If other cities are not encouraged, then by 2018 we would have six million people in the metros with only two million from other centres. Whereas, if we develop infrastructure in smaller centres, we could have about 3.2 million people, or 40 per cent of the total workforce, in centres that are small today.”

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