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India eyes new IT hub

Posted: 03 May 2007 ?? ?Print Version ?Bookmark and Share

Keywords:India IT business? India software sector? India IT investments?

While Bangalore continues to be the center of India's IT business, housing more than 1,500 top firms, poor roads and traffic woes are pushing companies to look for new areas. This is according to a Reuters report, which cited that Chandigarh, a joint capital of the Punjab and Haryana states, is taking steps to become the new corporate destination.

India's second-largest software company, Infosys, was among the first to move to the city and began operations from its complex in the Rajiv Gandhi Chandigarh Technology Park (RGCTP). The company employs about 1,500 people and plans to hire 5,000 more.

The RGCTP houses at least thirteen companies including Wipro, Bharti Airtel, Tech Mahindra and eSys. Chandigarh's IT director Manjit Brar said that the park is expected to have about 25,000 IT professionals when it becomes fully functional and will be the IT hub of north India. The current investment in the park is $165 million, and is expected to reach $711 million in two years, said Brar.

According to India's National Association of Software and Service Companies, the country's software sector expects export to increase 33 percent to $31.3 billion, in the fiscal year that ended March 31. Also, India's global outsourcing share from 2001-2006 is estimated to have grown to 65 percent for IT services and 45 percent for back-office services like call centers.

However, despite the excitement about Chandigarh as the new IT hub, there is still concern that the city may suffer the same fate as Bangalore if it is unable to sustain rapid growth that IT brings to a region.

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