IT/BPO Industry - Mangalore Emerging Strong Challenger to Bangalore

TNN

Bangalore, Jun 10: Bangalore remains India’s undisputed No.1 IT-BPO destination. But within Karnataka, Mangalore is seen to be emerging as a strong alternative. Mysore and Hubli-Dharwad are also found to be attractive locations.

A study done jointly by industry body Nasscom and research firm A T Kearney places these four cities from the state among 50 leading cities from around the country that are attractive or emerging destinations for IT-BPO services.

Mangalore finds its place among 15 cities seen as challengers to the ‘leaders’ that include Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, National Capital Region and Pune. It has been found to have a good knowledge pool, with close to 3,000 engineers graduating every year in the city. Social infrastructure like education and healthcare and its 37% cost advantage over cities like Bangalore are seen to be other advantages.

But “Mangalore needs to be more IT-focussed. The government should increase its visibility as a potential IT/BPO destination,” the report says.

Hubli-Dharwad, Mysore among ‘follower’ cities

The IT/BPO race is hotting up with secondary cities emerging as strong contenders as investment destinations.

A study done jointly by industry body Nasscom and research firm A T Kearney places Mysore and Hubli-Dharwad among 12 ‘follower’ cities. The former is seen to be promoting the IT industry, and it has some 5 engineering colleges that churn out 1,500 engineers every year. The city is seen to have good commercial developments, medical facilities and connectivity to places in the state, and a 32% cost advantage over the ‘leader’ locations. But “the physical and social infrastructure needs to be further developed, and the government needs to increase visibility of the location,” the study says.

Hubli has some 6,000 engineers graduating every year, and another 17,000 graduates that can be used by the BPO sector. It has a 38% cost advantage over ‘leader’ locations and domestic BPO voice operations can utilize both Kannada and Hindi speaking skills out of here. Nasscom says the city now needs to improve connectivity to national and international locations, improve education and medical facilities and develop good commercial space.

Nasscom president Som Mittal said the organization would be taking up the study with the new state government.