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IT's new destinations

After Bangalore, technology is focussing on other Indian cities.

Print Edition: March 8, 2009

The concentration of finance professionals in Ahmedabad, the developing hub for Islamic banking in Malaysia’s Penang and rising medical tourism in the Tunisian capital Tunis are different developments that may also make these cities emerge as hot destinations for information technology and business process outsourcing industries. Union Commerce Minister Kamal Nath released KPMG’s report on new emerging destinations for IT and BPO destinations at the NASSCOM Leadership Summit in Mumbai on February 11. The report lists 31 cities globally that have the potential of becoming hot spots for the industry soon. Egidio Zarella, KPMG’s global Partner in charge for IT advisory, was quick to add that this was neither a ranking nor an exhaustive list. “It just points out that there are so many interesting cities outside the most obvious destinations,” he said.

The report does detailed work on the Indian cities identified—Jaipur, Nagpur and Ahmedabad—and lists their advantages and weaknesses. For example, the note on Ahmedabad mentions the communal violence of 2002 as well as the bomb blasts of last year. Zarella says that KPMG plans to do more detailed work on cities in India and China later this year. “We will come out with separate volumes on India and China, listing many more emerging cities in these two countries that will dominate the IT sector in future,” he said.

Jaipur city
The chosen ones

Ahmedabad:
Produces a large number of chartered accountants and other finance professionals and cost of living is 30 per cent cheaper than popular BPO destinations in India

Jaipur: Large pool of engineers with 64 engineering colleges in and around the city. Proximity to New Delhi

Nagpur: Apart from being an education hub, it is also developing infrastructure as a result of the Multi-modal International cargo hub and airport project


—Suman Layak

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