IT companies are voicing a big ‘NO’ to tier I cities as the prices of commercial properties going through the roof and the increasing attrition rate in tier I cities.
As per a report by renowned manpower consultant the average attrition rate in the IT companies operating from Tier I metro cities of Delhi, Mumbai etc is as high as 25-40 per cent annually.
On the contrary the same at a Tier II city like Chandigarh and Pune for instance is comparatively low at 10-25 per cent and is expected to be far less than this in Tier III cities.
A ballpark estimation says that nearly 95% of the IT outsourcing activity (both domestic and international) is concentrated in the six, tier-I cities. Now, cities such as Chennai, Hyderabad, Pune, and tier III cities like Jaipur, Chandigarh, Mysore and Ahmedabad are to make the mark in BPO sector, says the data showcased by India Executive Report 2007.
Whereas in tier II and III cities high salaries, vibrant work culture and environment are the main highlights luring more and more people to look forward to BPO jobs. On the other hand since the rates of commercial properties are less in those tiers II cities and the retention of manpower easier IT companies finding is a prudent effort to mark their presence in tier II and tier III cities.
Talent getting skimmed in metros is another reason for these companies to ponder over moving their stations to tier II and III cities but at the same time the problem these IT companies can come across is the unavailability of proper and adequate infrastructure.
However, there is a win-win situation for IT companies if they move to smaller cities. The reports nevertheless corroborate that IT giants like TCS, Infosys, Wipro and Satyam have openly launched their operations in Tier II and Tier III cities like Mysore, Goa, Chandigarh, Indore and Bhopal in the recent times.
Contributed By : Kaustubh Jarag
On the contrary the same at a Tier II city like Chandigarh and Pune for instance is comparatively low at 10-25 per cent and is expected to be far less than this in Tier III cities.
A ballpark estimation says that nearly 95% of the IT outsourcing activity (both domestic and international) is concentrated in the six, tier-I cities. Now, cities such as Chennai, Hyderabad, Pune, and tier III cities like Jaipur, Chandigarh, Mysore and Ahmedabad are to make the mark in BPO sector, says the data showcased by India Executive Report 2007.
Whereas in tier II and III cities high salaries, vibrant work culture and environment are the main highlights luring more and more people to look forward to BPO jobs. On the other hand since the rates of commercial properties are less in those tiers II cities and the retention of manpower easier IT companies finding is a prudent effort to mark their presence in tier II and tier III cities.
Talent getting skimmed in metros is another reason for these companies to ponder over moving their stations to tier II and III cities but at the same time the problem these IT companies can come across is the unavailability of proper and adequate infrastructure.
However, there is a win-win situation for IT companies if they move to smaller cities. The reports nevertheless corroborate that IT giants like TCS, Infosys, Wipro and Satyam have openly launched their operations in Tier II and Tier III cities like Mysore, Goa, Chandigarh, Indore and Bhopal in the recent times.
Contributed By : Kaustubh Jarag
No comments:
Post a Comment