Following Bangalore is Mangalore as a "challenger location" and Hubli-Dharwad as "aspirant locations" according to the report. Presenting the findings at the summit, Nasscom President Som Mittal said the findings are indicative of the potential that the industry sees in these regions beyond Bangalore and investments that companies can make here.
He said though Bangalore would continue to grow and deliver, what can make investment in tier II and III cities attractive was the cost of operations which were lower by 15-20 per cent in terms of real estate value and wages.
He said cities such as Mysore, Hubli, Dharwad needed support on these fronts to grow and develop into leading IT hubs.
The BPO industry, he said, had moved from the realm of just being cost-efficient and was being perceived as being service-efficient and high on delivery and productivity.
Ganesh Natarajan, chairman, Nasscom and deputy chairman and MD, Zenzar, said, "Nasscom has defined six agenda points for the year and the BPO firms with their huge employment contribution and potential are well positioned to take the lead in building collaboration and community and demonstrating their prowess in area development."
According to Pramod Bhasin, vice-chairman, Nasscom and president and CEO of Genpact, the BPO segment is the fastest growing segment in the overall offshore market. Labour arbitrage has been the key driver but over the past few years, talent, service quality, productivity and time to market have become the key differentiators.
