Chandigarh is one of 15 emerging outsourcing destinations for global companies, according to a new industry report.
A study by industry publication Global Services and investment advisory firm Tholons put Chandigarh at number nine, apart from putting Chennai, Hyderabad ,Kolkata and Pune at the top of a list of 15 emerging outsourcing destinations for global companies.
The list is based on criteria such as scale and quality of workforce, financial infrastructure, risk environment and quality of life. But it does not include established outsourcing locations such as Bangalore, the New Delhi capital region, Manila, Mumbai and Dublin that have had a decade’s headstart.
The Rajiv Gandhi Chandigarh Technology Park (RGCTP) is the first IT sector special economic zone (SEZ) in the country. It is projected that within the next three years, approximately $500 million revenue would be generated from the companies working at RGCTP. In addition, 25,000 jobs for youths would be available during the same period.
The Chandigarh Administration has been working in the development of human resources and has set up bodies like the Chandigarh Training On Soft Skills (CTOSS) Programme and Society for promotion of IT in Chandigarh (SPIC).
Already a home to a number of IT and BPO companies like Tech Mahindra, Infosys (India’s second largest software company and was among the first firms to step into the city and start its operations from a complex spread over 30 acres in the RGCTP), Chandigarh is being seen as potential place to treat a broader spectrum of corporate clients than Delhi, Bangalore, Hyderabad, according to industry analyst.
“With the demand-supply gap widening, newer tier II cities will play a critical role in re-engineered globalisation models,” said Tholons chairman Avinash Vashistha.
“Destinations will need to provide greater level of cost effectiveness and operational efficiency. India’s outsourcing companies have thrived by winning work from companies in the US and Europe that sought to tap the country’s low costs and large employee pool by handing over jobs ranging from answering customers’ calls to risk management and financial analysis,” he added.
Pure-play outsourcing firms account for about 10% of the $50 billion in revenue logged in the year ended March by the entire information technology industry, which also includes software giants such as Tata Consultancy and Infosys.