Tier II and Tier III Cities Wooing BPO Firms

May 9, 2007	(1 votes, average: 3 out of 5)  Loading ...
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Sky hitting property prices, capacity constraints and lack of manpower are pushing business process outsourcing firms to expand their horizons to tier-II and tier-III cities.

Nearly 95% of the IT outsourcing activity (both domestic and international) is concentrated in the six tier-I and tier II cities.  Now, cities such as Chennai,  Hyderabad, Pune, and tier III cities like Jaipur, Chandigarh, Mysore and Ahmedabad are to make the mark in BPO sector, says the data showcased by India Executive Report 2007.

High salaries, vibrant work culture and environment are the main highlights luring more and more people to look forward to BPO jobs. There is 15-20 per cent rise in salaries over the past three years and they are expected to continue to rise.

Contrary to what has been the earlier selection criterion, call centers are now hunting for the skilled workforce and expect to find it in other cities.

The talent base in metros is saturating whereas there is a large pool of skilled people in smaller cities but additional training efforts will be needed. Still, we are looking forward to change stations, says Ashok Tyagi, senior vice-president (Enabling Services), Genpact.

Another known conglomerate, TPI Advisory Services India, is looking at the growth prospects into tier II cities to tackle the talent issue.

However, Infosys BPO Chairman TV Mohandas Pai has something else to say about such emerging cities. He companies of lack of infrastructure facilities here which is certainly one of major factors hindering the growth of firms in these cities.

Recalling Infosys BPOs experience in Mangalore where it executes 500-seater operation, Pai observes the firm not to have received any power for the first seven months.

Infosys BPO was keen on tapping the talent in secondary and tertiary cities, he further adds.

News Published Under:   Real Estate India |

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