IT Companies Prefer Gurgaon and Noida to Bangalore : ASSOCHAM

According to the findings of a survey undertaken by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), Bangalore may lose its crown of India’s IT Capital to Gurgaon and Noida in the national capital region.

Leading IT and ITeS vendors prefer to shift their focus from Bangalore to other cities – especially the satellite cities of Gurgaon and Noida – to generate more revenues.

Gurgaon, Noida are steadily becoming preferred destinations for companies offering IT, ITes, BPO, BTO and KPO services in various domains like banking, financial services, insurance, pharma, auto, FMCG and manufacturing.

Bangalore is losing its sheen due to crumbling infrastructure, compelling many companies to head towards more convenient and industrial-friendly centres.

ASSOCHAM interacted with around 800 directors, CEOs, CFOs, chairmen and managing directors of Indian and multinational companies in various verticals with a choice of five cities to relocate their businesses to garner more revenues.

As many as 30 per cent top-ranked officials of IT companies based out of Bangalore said they prefer to shift their business to Gurgaon.

[advt]Of the remaining, 25 per cent respondents said that they would prefer to shift their base to Noida or Greater Noida which are rapidly developing software and BPO hubs. About 20 per cent said that they would prefer to shift their base to Chandigarh which offers a conducive business environment.

Nearly 15 per cent of respondents said that they prefer Pune to operate from where a large number of IT companies are running their operations. The remaining 10 per cent of respondents said they will prefer to relocate their business to Hyderabad.

In Bangalore, narrow and choked roads and poor civic amenities are some reasons why software companies have stopped expanding their business operations. Deteriorating quality of life, pollution, and rising costs of goods and services are adding to Bangalore’s woes.

“The growth explosion in Bangalore has pushed the city towards a serious civic crisis,” said ASSOCHAM secretary general D.S. Rawat. “Roads choked with vehicles, frequent power outages, erratic water supply and poor sanitation are tough problems on account of which Bangalore is losing its luster to rapidly-developing Gurgaon and Noida.”

“Gurgaon’s cosmopolitan culture, modern infrastructure, availability of skilled workforce, closeness to Delhi along with industry-friendly government policies are the factors which gives it an edge over Bangalore,” said Mr Rawat.