COCHIN(Kochi) is emerging as attractive ITES destinations primarily due to rapid improvement in infrastructure (power, international bandwidth and urban transportation) and lower manpower costs due to lower cost of living and lack of alternative employment opportunities. It was asessed on factors such as assessed on factors such as manpower availability, real estate, telecom infrastructure, policy initiatives, power infrastructure, city perception and entrepreneurial history.
The growth has been largely driven by three factors. First is the desire of by state governments to attract entrepreneurship, which has resulted in attractive policy environments and incentives being offered.
The second is the rapid improvement in key infrastructure areas like power, telecom bandwidth and real estate in newer locations.
The last is the need for ITES companies to lower operating costs, especially employee costs and transportation.
Kochi
Kochi is an upcoming city in Kerala and is aggressively being promoted by the state government as an IT destination. Though it doesn't have any ITES companies of significance yet, it holds a lot of potential to attract many.
But the city needs to address the following infrastructure issues: Though it has the lowest power tariff among all the cities surveyed, it still experiences some power cuts. Like most cities in India, Kochi lacks a decent public transport infrastructure
Compared to the larger cities, Kochi has only a few colleges. As ITES companies would mainly hire graduates, the state needs to ensure abundant supply of trained manpower.
Kochi too loses out in the perception game. The government needs to ensure that the city moves up this scale to start attracting new businesses
Power The variance in the ranking comes due to the tariffs existing across various cities. Kochi has a low tariff of Rs 3/unit and it goes as high as Rs
4.97/unit in Mumbai Kochi experience pre scheduled power cuts
Manpower Manpower cost varies depending on the city's cost of living. The city's attractiveness also depends on the number of trained manpower. Manpower cost is as high as Rs 51.59/hr in Mumbai as compared to Rs 17.04/hr in Kochi.
Perception Perception plays an important role while deciding the location of a new unit. Bangalore ranked high because of the state's IT policy. Kolkata, Ahmedabad and Kochi lag behind in the IT initiatives undertaken by the government. Recent riots at Ahmedabad has harmed its perception even more as a business centre.
Entrepreneurship Bangalore, Mumbai and Delhi have a large number of start- ups and have more entrepreneurs hailing from the city who in turn set up base in the
city. Kolkata, Pune and Kochi don't score very that high, as they do not have many start-ups. REDIFF.COM
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