Experts say that the main reason for IT companies’ reluctance to shift to Gujarat is the lack of manpower for service-oriented industries in the state.
Bangalore-based information technology (IT) companies disenchanted with the crumbling infrastructure of their city are shifting to more industry-friendly centres. But what is strange is that Gujarat is not among their preferred destinations for relocation, says a survey conducted by the Associated Chambers of Commerce and Industry of India (Assocham).
Experts say that the main reason for IT companies’ reluctance to shift to Gujarat is the lack of manpower for service-oriented industries in the state. Gurgaon, NOIDA, Chandigarh, Pune and Hyderabad are better equipped with skilled manpower and other infrastructure needed by the IT sector, the experts said.
According to the survey, nearly 55% of the IT companies based in Bangalore are relocating their India headquarters to other cities of the country. These firms provide IT, ITes, BPO, BTO and KPO services in various sectors, including banking, finance, insurance, pharmaceuticals, automobile and FMCG.
Of the 800 directors, CEOs, CFOs, chairmen and MDs of IT multinationals with operations in India, around 30% have opted for Gurgaon as the best destination for relocation. The IT companies’ next favourite among cities for relocation are NOIDA and Chandigarh which have attracted 25% and 20% of the firms, respectively. Another 15% of the respondents preferred Pune which also has a large number of IT companies while 10% preferred relocating to Hyderabad, the Assocham survey says.
Strangely, Gujarat does not figure on the list of Bangalore IT firms' preferred destinations for relocation. "It is said that Gujarat missed the IT bus in the 1990s," said Bhagyesh Soneji, chairperson, Assocham - Gujarat.
"The state is currently well-known as a production hub, and not for service-oriented industry. On the other hand, cities like Gurgaon, Noida, Pune and some others have better infrastructure and manpower for service-oriented industries. This seems to be the main reason why Gujarat is not among the most preferred places for relocation by IT companies."
However, Jaimin Shah, president, Gujarat Electronics and Software Industries Association (Gesia), said that Gujarat may not be the most preferred centre for relocation, but it is very much on the radar of Bangalore-based IT companies. "Many firms are considering Gujarat as well for their relocation plans," he said.
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