Tier III cities: The next location for IT offshoring
Ahmedabad, Chandigarh, Indore, Kolkata and Nagpur, the Tier III cities in India are best positioned to emerge as major centres for offshoring activities by IT companies over the next five years, according to a recent Jones Lang LaSalle report.
The report titled "India - The Next IT Offshoring Locations. Tier III Cities", which is part of the firm's World Winning Cities research, highlights these five cities as fulfiling the requirements that IT companies look for, when deciding on offshoring locations, namely availability, costs of labour and real estate, business environment as well as physical and social infrastructure.
Comparison :
Nagpur currently provides a cost advantage of about 15 per cent over Kolkata, which offers a 10 per cent cost advantage over Pune. From a real estate perspective, Kolkata provides the largest availability of grade A office space, with large developers such as DLF and Unitech, who have traditionally operated in Tier I cities now operating in Kolkata.
From a facility cost view, Nagpur and Ahmedabad provide a 25 to 30 per cent cost advantage over Kolkata and Delhi. Ahmedabad and Chandigarh provide the highest cost advantage amongst the Tier III cities and are therefore likely to attract occupiers that place a high weight on the cost factor.
Ahmedabad, Chandigarh, Indore, Kolkata and Nagpur, the Tier III cities in India are best positioned to emerge as major centres for offshoring activities by IT companies over the next five years, according to a recent Jones Lang LaSalle report.
The report titled "India - The Next IT Offshoring Locations. Tier III Cities", which is part of the firm's World Winning Cities research, highlights these five cities as fulfiling the requirements that IT companies look for, when deciding on offshoring locations, namely availability, costs of labour and real estate, business environment as well as physical and social infrastructure.
Comparison :
Nagpur currently provides a cost advantage of about 15 per cent over Kolkata, which offers a 10 per cent cost advantage over Pune. From a real estate perspective, Kolkata provides the largest availability of grade A office space, with large developers such as DLF and Unitech, who have traditionally operated in Tier I cities now operating in Kolkata.
From a facility cost view, Nagpur and Ahmedabad provide a 25 to 30 per cent cost advantage over Kolkata and Delhi. Ahmedabad and Chandigarh provide the highest cost advantage amongst the Tier III cities and are therefore likely to attract occupiers that place a high weight on the cost factor.
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