India's IT sector to grow at 35 pc: Report

By SiliconIndia   |   Wednesday, 11 April 2007, 07:00 Hrs
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DUBLIN:Research and Markets has come out with an 'India IT Services Executive Report 2007'. The report tackles cost estimates and economic handlers for corporate buyers, vendors, and investors and gives an idea of how to compare and evaluate India's cities for site selection and investment. According to the report, the IT sector is projected to grow at 35 percent in 2007.

It gives strategic city-by-city talent analysis, IT engineer graduation stock and density forecasts, service supplier profiling, real estate costs, the latest tax increase and incentive assessment, infrastructure, communication and tele-density analysis, and quality of life rating.

The report finds that India's 450,000 annual engineering graduates in 2006 will increase by almost 100,000 with over 600,000 annual graduates in subsequent years.

It further states that rising costs and local capacity constraints are driving companies to Tier 2 cities such as Chennai, Hyderabad and Pune and Tier 3 cities such as Jaipur, Chandigarh, Mysore and Ahmedabad. Presently, the six leading Tier 1 and 2 cities generate 95 percent of IT revenues.

India's high growth rate has led to problems in the form of inadequate public infrastructure, salary inflation and high attrition rates. This increases the attractiveness of Tier 2 and Tier 3 cities where quality of life, lower wages and other costs are increasingly attractive. The report evaluates fourteen Tier 1 and Tier 2 cities and identifies the most attractive alternatives.

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