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Kolkata Poised To Become Next IT Outsourcing DestinationBy Mrs Gupta, Section Development
Low cost, developed infrastructure, skilled workers and low attri tions Kolkata has all this and more to make it an emerging hub for business process outsourcing (BPO) units.
A study by US IT advisory firm Tholons Inc. and Global Services, a media platform for business and technology services, puts Kolkata on the fifth position in the list of `Top 50 Emerging Outsourcing Cities' in the world. India is represented with six cities in the list. While Chennai tops the chart, Hyderabad is placed at the second position, followed by Pune (3rd) and Kolkata (5th). Two more Indian cities Chandigarh (9h position) and Coimbatore (21st) also find place in the top 50. The study places Kolkata before cities like Ho Chi Minh City, Shenzen, Shanghai, Beijing and Warsaw. The categories that were kept in mind while carrying out the study included scale and quality of workforce, business catalyst, financial facilities, infrastructure, risk environment and quality of life. According to the study, Kolkata has a great advantage in catering to applications development and mainte nance operations, apart from customer service and finance and accounting (F&A). Attrition in the city's BPO sector is in the range of 15 to 20 per cent, compared to the Indian industry average of 30 per cent. The report also states that IT companies operating here enjoy a 15 to 30 per cent cost advantage, as compared to Delhi, Mumbai and Hyderabad. The cost of living in the city is lowest compared to other metros, and it is expected to go down further as more commercial and residential space enters the market. According to figures released earlier by Tholons, it was ob served that voice and non voice BPO employees in Kolkata have a saving potential of 20.9 per cent more than Bangalore, the most prominent IT destination in the country. In comparison, the saving potential in Delhi is 3.5 per cent, and in Mumbai it is 2.6 per cent. However, the report stated, "The city's Communist heritage occasionally rears its head, resulting in the downing of shutters. The IT and BPO industry is not immune to this, and companies have had to wait endlessly for land allotment for setting up centres."
"This is the feedback that we got after talking to a wide cross section of the IT industry in the state, including some major companies," said the editor of Global Services, Juhi Bhambal.
Last month, NASSCOM president Kiran Karnik had said that though the state government is trying to improve the industrial climate in the state, a lot more is needed to be done to resolve issues like land acquisition for industry. This observation comes at a time, when two major IT companies in the country, Infosys and Wipro, have shown eagerness to acquire land for setting up their new facilities in the city. The state government, however, has not been able to pro vide them suitable land at desired prices. Some officials in the state IT department blame these companies for demanding land at archaic prices in the city, where real estate rates are soaring. "Some companies are expecting rates that prevailed five years ago. That is not possible. In some cases, we have noted that the compensation to be paid to those who have lost their land in Rajarhat is Rs 60 lakh. So, how can we give away the land at cheaper rates?" asked a senior official. State IT Secretary Siddharth had earlier said that land was already being given to IT companies at a concessional rate. Source:The Indian Express,02-10-07
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