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Karnataka, top BPO destination in India
A Correspondent | June 09, 2004 13:32 IST
Last Updated: June 09, 2004 13:34 IST
Karnataka has leveraged the prowess of its IT industry to emerge as the leading ITES-BPO destination in India, as it outscores other states on some key parameters that potential investors look at before setting up shop.
A Nasscom-KPMG study on 'Choosing a location for offshore operations in India,' released by the National Association of Software and Services Companies on Wednesday at its sixth annual ITES-BPO Strategy Summit in Bangalore, said that Karnataka is well placed to bag the pride of place in the BPO sweepstakes.
The study covers 13 'clusters' across 10 states in India included Ahmedabad-Gandhinagar, Bangalore, Chandigarh-Mohali, Chennai, Hyderabad-Secunderabad, Visakhapatnam, Jaipur, Kochi, Thiruvananthapuram, Kolkata, Mumbai-Navi Mumbai-Thane, Pune, and New Delhi-Gurgaon-Noida. The survey analyses the potential of these centres as BPO destinations.
The 10 states -- Karnataka, Andhra Pradesh, Maharashtra, Gujarat, West Bengal, Punjab, Rajashtan, Kerala, Tamil Nadu, and the National Capital Region (including Hayarana) currently account for approximately 85 per cent of the country's IT / ITES exports.
Commenting on the study, Kiran Karnik, President, Nasscom, said, "The objective of the study is two-pronged: first, to have readily available, relevant and reliable information with respect to location choice within India for potential investors / customers and, second, to help the industry and the local government understand what drove ITES location preferences and hence guide efforts to improve attractiveness for ITES."
The framework used for assessment included human resources (number of graduates, average salary for ITES, attrition rate, etc), infrastructure (availability and cost of facilities / utilities, quality of life), ITES focus (number of companies and nature of ITES work, policy support and positioning), support group presence (local industry associations, knowledge forum, etc) and the physical features (geographic location).
On Karnataka's attractiveness, Karnik said, "The Nasscom-KPMG report highlights that Karnataka is currently ranked attractive on all parameters in assessing a BPO location. In terms of future attractiveness, the outlook is positive but the government and the industry needs to address infrastructure and human resource challenges."
As per the study, Karnataka's current attractiveness on above parameters is highlighted as under:
"With more and more captive and third party service providers moving their high-end support services to Karnataka, the state is expected to emerge as the leading BPO center in India by 2006. Clearly, the big opportunity for India is to build on this," added Karnik.
However, to further strengthen the ITES-BPO industry in Karnataka, NASSCOM recommends: