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New Delhi: As rising cost of infrastructure and employees in big cities started threatening the Indian IT industry, the government has announced its plan to develop 43 new IT cities in the country, in order to tap the huge surge in demand for IT-enabled services over the next 10 years, while maintaining its cost effective appeal, reported The Economic Times.
The move comes when IT and BPO companies are losing their global cost advantage with the emergence of countries like Vietnam and the Philippines which offer similar services at cheaper rates and are threatening India's status as the world's back office.
The plan seeks to find a way out of the situation where companies find it difficult to recruit quality employees as the allure of BPO jobs dulls and attrition rates go up.
Infrastructure constraints in Bangalore, Gurgaon and elsewhere are other spanners in the work.
It is felt that these new towns will provide a steady supply of workers besides being specifically geared towards the needs of the IT and BPO sectors. The proposal, suggested by a high-level group on service sector, has been cleared by the Planning Commission. "The modalities for the ambitious plan will be finalized very soon," sources said.
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siliconindia news bureau
Reader’s comments
Comment 1: It's very good decision of government. We most welcome this decision. As there are lots of burdon in these 6-7 IT Cities, very costly property, lack of resources, huge population and other major problems. We want to move away from these cities. We want to go our home town and settle there. There are many other good tier 2 cities, like Agra, Mathura, Jaipur are well connected to Delhi, good atmosphere, Technical Instiutues, Hospital, Water, Electric, National Highway, Well connected by Rail (Delhi-Mumbai Rail)
infrastructure, land etc. Govt must think about these Cities.
Can we please know the name of 43 Cities?
Posted by : Manish Garg - Tuesday, June 24, 2008
infrastructure, land etc. Govt must think about these Cities.
Can we please know the name of 43 Cities?
Posted by : Manish Garg - Tuesday, June 24, 2008
Comment 2: the is decission is appriciative most of the comapnaies were responseble for the huge costing of thier operations in India , as well the real esate boom is entire notional it doesnt have any logical reasons to have a huge and continous hike in the price , better Govt has to take care at least from now to avoid the similar situation for the upcomming cities even
Posted by : santhosh kumar soma - Tuesday, June 17, 2008
Posted by : santhosh kumar soma - Tuesday, June 17, 2008
Comment 3: what r the names of cities n govt is only planning which ministry will be responsible for such kind of initiative. And what kind of step govt is going to take for our existing cities just getting new place wont solve any problem if after few years it'll also face same condition, i agree it is welcome step but we dont need to face threat from countries like Vietnam & Philipines, how many IT & ITEs professional do you think both of this country have offcourse much lesser then us, even if we want to give competition we need to also facilitate that city as well as to our other cities or else it wont solve any problem will create same bottle neck afterwords. So please create it but with a clearer vision for future also
Posted by : sanjeev - Tuesday, June 17, 2008
Posted by : sanjeev - Tuesday, June 17, 2008
Comment 4: Creation of new IT cities is a welcoming step. But the government should take care of that the local bodies has to provide well connectivity to that areas. Local trains mush be provide to that areas.
You see the exmple of Bangalore and Hyderabad. There are lot of IT companies are there but there is no proper transport facility.
MANIKONDA in Hyderabad and Electronic city in Bangalore don't have local train facility. Due to this lot of 2 wheelers and 4 wheelers are coming on to the roads. Due to this lot of traffic jams, pollution, over consumption of natural resources like petrol.
I think local bodies knew these problems, but they are not interested to provide the facilities. The central government is also not taking any steps to solve these problems. First government has to provide the utilities perfectly to the existing cities and then it is better to plan for new cities.
Posted by : SP - Tuesday, June 17, 2008
You see the exmple of Bangalore and Hyderabad. There are lot of IT companies are there but there is no proper transport facility.
MANIKONDA in Hyderabad and Electronic city in Bangalore don't have local train facility. Due to this lot of 2 wheelers and 4 wheelers are coming on to the roads. Due to this lot of traffic jams, pollution, over consumption of natural resources like petrol.
I think local bodies knew these problems, but they are not interested to provide the facilities. The central government is also not taking any steps to solve these problems. First government has to provide the utilities perfectly to the existing cities and then it is better to plan for new cities.
Posted by : SP - Tuesday, June 17, 2008
Comment 5: I think this is a welcome step. The existing IT cities are already packed up with people and they donot and cannot support such a huge IT population. I think the concentration needs to be diluted to other cites. But the govt also should be careful as we donot want more examples of cities like Gurgaon, which i has succumbed to regional politics and govt negligence.
Posted by : Karandeep Malik - Tuesday, June 17, 2008
Posted by : Karandeep Malik - Tuesday, June 17, 2008
Comment 6: They are attacking the symptoms and not the problem. The surge in salary is a generic phenomenon. This is happenning because more money coming to india in terms of foreign investments. This not only affect IT sector but also other sectors such as financial and manufacturing. This is coupled with strenthening of Indian rupees.
Just building IT cities will not solve the problem. In addition to building basic infrastructure such as "quality" education institutions, roads, IT infrastructure, security etc. the government should think of long term sustainable strategy. Unless talented individuals see long term benefit from being in IT, they will stay away from it.
Posted by : sarajit poddar - Monday, June 16, 2008
Just building IT cities will not solve the problem. In addition to building basic infrastructure such as "quality" education institutions, roads, IT infrastructure, security etc. the government should think of long term sustainable strategy. Unless talented individuals see long term benefit from being in IT, they will stay away from it.
Posted by : sarajit poddar - Monday, June 16, 2008
Comment 7: Planning cities is a fine idea. But the problem is much deeper. There are systemic problems with education and training. The country needs many more institutions of the caliber of the IITs and world-class universities to educate the hundreds of thousands of students seeking technical education. The degrees being awarded by 4th rate degree factories simply can't cut it when it comes to competing in a globalized world. To build a world-class education system, India needs to do what the US did in the 1950's: Make massive investments in research and education and draw the best talent from around the world to learn, teach, do research, and work at India's universities and transform them into world-class institutions. India could borrow a page from China in this regard: China has invested heavily in its institutions of higher learning in the past decade. The results are beginning to show. Microsoft Research labs in China has the world's best graphics research group in the world (See the papers published in SIGGRAPH). Until India invests in education, research, and basic infrastructure, these so-called IT cities will be no more than IT ghettos or IT slums of the world.
Posted by : Joe - Monday, June 16, 2008
Posted by : Joe - Monday, June 16, 2008
Comment 8: There was a so called IT park in Hubli Karnataka, which has been started in 1998, And proposed IT Parks in Mangalore Karnataka. I have observed that there is not a single IT firm is funtioning, in those buildings. If any body opens firm over there, others see them in suspiciously as locals have been cheated in the name of IT firms.
Its not only proposing the IT parks, the government should also provide the basic infrastructures like Braod band, Good roads, Transportation and other basic essentials to function. And Government also should monitor that there is no false companies have opened, and they are not cheating the people.
You can reffer articles from Times of india where it has been clearly mentioned that one of the well known BPO company has withheld the salaries of their employees for several month.
Lets see what happens thei time.
Posted by : Girish - Monday, June 16, 2008
Its not only proposing the IT parks, the government should also provide the basic infrastructures like Braod band, Good roads, Transportation and other basic essentials to function. And Government also should monitor that there is no false companies have opened, and they are not cheating the people.
You can reffer articles from Times of india where it has been clearly mentioned that one of the well known BPO company has withheld the salaries of their employees for several month.
Lets see what happens thei time.
Posted by : Girish - Monday, June 16, 2008
Comment 9: As always it will be a multi-multi-year plan. For all the growth being cited, corruption is deep rooted. No country in the developed world allows corruption at the lower levels. Corruption is inhuman and like torture, why would any one want to subject another human being to it?
Posted by : speedy - Monday, June 16, 2008
Posted by : speedy - Monday, June 16, 2008
Comment 10: It should not be too hard to guess... If you know your State list the tier 2 and tier 3 centers and take the top 5. Consider the States that have atleast some significant IT presence (Kerala, Karnataka, TN, AP, Gujarat, Maharastra, UP, and WB for example).
Posted by : Krishna - Monday, June 16, 2008
Posted by : Krishna - Monday, June 16, 2008
Comment 11: we would be interested to move out of the cities too.
can we get the names of the proposed names of the towns.
Posted by : sreenivas babu - Monday, June 16, 2008
can we get the names of the proposed names of the towns.
Posted by : sreenivas babu - Monday, June 16, 2008
Comment 12: In India you will get the comments from the politicians first. Then they will start darfting keeping in mind the speculations of the people. We have to decided whether it's a good politics or bad politics.
Posted by : Biswa - Monday, June 16, 2008
Posted by : Biswa - Monday, June 16, 2008
Comment 13: We will not get to know now where ther ywill be located. The politicians have to decide on their share of the spoils first.
Posted by : kishan - Monday, June 16, 2008
Posted by : kishan - Monday, June 16, 2008
Comment 14: Can we get those cities name ...
Posted by : Lailesh - Monday, June 16, 2008
Posted by : Lailesh - Monday, June 16, 2008
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