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NASSCOM (National Association of Software and Services Companies)

 

NASSCOM releases findings of "Super Nine" Indian ITES Destinations

Highlights the need to address infrastructure and policy gaps to make Indian cities competitive in the ITES sector

New Delhi, August 6, 2002: NASSCOM, the apex industry body of Software and Service Companies in India, today, revealed the findings of an extensive study conducted in association with Net scribes to assess the competitiveness of nine Indian cities as destinations for IT Enabled Service companies. The three-month long study evaluated the top nine cities including Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Kochi,Mumbai (including Navi Mumbai), Pune and NCR (Delhi, Noida and Gurgaon).
The cities were assessed on factors such as manpower availability, real estate, telecom infrastructure, policy initiatives, power infrastructure, city perception and entrepreneurial history.

RANKING OF INDIAN ITES CITIES

CITY RANK
HYDERABAD 1
KOCHI 2
CHENNAI 3
KOLKATA 4
AHMEDABAD 5
BANGALORE 6
MUMBAI 7
NCR 8
PUNE 9
 
  Telecom Power Real estate Man-power city protec-tion Entrepr-eneurship History  Policy Initiati-ves
AHMEDABAD 9 4 2 4 8 6 3
BANGALORE 8 7 6 6 1 1 6
CHENNAI 4 2 5 5 3 4 4
HYDERABAD 5 3 3 2 2 5 1
KOLKATA 6 1 4 3 7 7 5
KOCHI 2 6 1 1 9 9 2
MUMBAI 1 5 9 9 4 2 8
NCR 3 9 8 8 5 3 7
PUNE 7 8 7 7 6 8 9

According to NASSCOM, the ITES industry in India is experiencing the third wave of growth; both in terms of geographical areas of operation and services offered.

The growth has been driven by three factors:
        
The desire by state governments to attract entrepreneurship, which resulted 
           in the former offering attractive policy environments and incentives.
        
The rapid improvement in key infrastructure such as power, telecom
           bandwidth, and real estate in newer locations.
        
The need for ITES companies to lower operating costs (especially employee 
           costs, and transportation).

ANNEXURE: Findings of the NASSCOM ITES Super Nine Study:

Though the 'Super Nine' cities have already herded a number of ITES firms, there are many areas that need to be addressed to make them globally competitive. These requirements vary from city to city.

Kolkata

The profile of the ITES companies in Kolkata suggests that it is relatively strong in data processing / management / digitization and back-office operations. However, in other areas, the city hasn't been able to attract many companies. The government needs to address several issues, especially on policy, to attract companies from other kinds of services. Some of these are:
     
The main issue that needs to be tackled to place Kolkata firmly on the ITES     
         map is perception.
     
Although the state government is aggressively promoting Kolkata as a
         destination for ITES firms, it needs to do more. Offering more incentives - 
         possibly following the Andhra model - and showcasing the success stories
         coming out of the city could be the first step toward achieving this.