Information Technology (IT) is a growing field in South India, an area that encompasses the states of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu as well as the territories of Lakshadweep and Pondicherry.
Over the past decades, the Information Technology (IT) industry has become one of the fastest industries in India, propelled by exports. Softwares and services (IT services) as well as IT-enabled services or business services (ITeS) have indeed fuelled growth in the country.
Various comparison studies all over the world have established the attractiveness of Indian IT services and ITeS industry. For instance, a study by Booz Hamilton has revealed this year that India has emerged as the 2nd largest preferred destination for global R&D and innovation with US$12.9 billion of R&D investment being poured into the country by 184 top R&D companies globally.
The chief reasons behind this performance range from labor cost arbitrage, dominance of talent pools to undertake complex R&D, strong quality orientation, the availability of high quality infrastructure to prominent IT services and ITeS locations within the country, and especially in the South.
But still, why did the IT boom happen in South India and not in North India first? Several factors have to be taken in consideration, such as the dulcet climate, the presence of institutions of higher learning like the Indian Institute of Science at Bangalore and the Indian Institutes of Technology, IIT Madras, in Chennai. A number of engineering colleges also mushroomed to feed the voracious appetite for talent of the IT industry in South India.
Over the years, Bangalore (Karnataka), Chennai (Tamil Nadu) and Hyderabad (Andhra Pradesh) have grown to form now what is called the Indian “Silicon triangle.”
Bangalore, India’s IT hub, has the largest number of international and local IT and business process outsourcing (BPO) companies in the country (Infosys, Wipro, IBM, Goldman Sachs and Siemens). Chennai, the “Detroit of South Asia,” ranks next to Bangalore in the software exports in the country and has become one of the most preferred BPO hubs in India and South Asia. Hyderabad is often referred to as “Cyberabad,” because of the large number of IT firms in the city.
The decision by various companies that have chosen to locate their operations especially in this area is based on parameters such as: leveraging local experience and assets, spreading to reach right skills at right costs and business continuity requirements. That’s why for instance World Multi National Companies (MNC) in the IT sector usually put its first foot in this zone and plan to expand only after consolidation.
However, the industry is facing nowadays several key challenges, such as the need to sustain competitiveness in the face of alternative emerging locations and enhancing supply of quality human capital to cater to increasing demand. Efforts in this direction are already underway in India. Continuous emphasis on the same is imperative to ensure that the industry’s future growth is undeterred.
Moreover, there is a large amount of disparity within Southern India. As IT companies have entered the economic arena, the economic standing of young and educated professionals has raised, while the poor has become less and less able to afford basic necessities. Remains a question: how long would India be able to sustain her impressive showing?
Over the past decades, the Information Technology (IT) industry has become one of the fastest industries in India, propelled by exports. Softwares and services (IT services) as well as IT-enabled services or business services (ITeS) have indeed fuelled growth in the country.
Various comparison studies all over the world have established the attractiveness of Indian IT services and ITeS industry. For instance, a study by Booz Hamilton has revealed this year that India has emerged as the 2nd largest preferred destination for global R&D and innovation with US$12.9 billion of R&D investment being poured into the country by 184 top R&D companies globally.
The chief reasons behind this performance range from labor cost arbitrage, dominance of talent pools to undertake complex R&D, strong quality orientation, the availability of high quality infrastructure to prominent IT services and ITeS locations within the country, and especially in the South.
But still, why did the IT boom happen in South India and not in North India first? Several factors have to be taken in consideration, such as the dulcet climate, the presence of institutions of higher learning like the Indian Institute of Science at Bangalore and the Indian Institutes of Technology, IIT Madras, in Chennai. A number of engineering colleges also mushroomed to feed the voracious appetite for talent of the IT industry in South India.
Over the years, Bangalore (Karnataka), Chennai (Tamil Nadu) and Hyderabad (Andhra Pradesh) have grown to form now what is called the Indian “Silicon triangle.”
Bangalore, India’s IT hub, has the largest number of international and local IT and business process outsourcing (BPO) companies in the country (Infosys, Wipro, IBM, Goldman Sachs and Siemens). Chennai, the “Detroit of South Asia,” ranks next to Bangalore in the software exports in the country and has become one of the most preferred BPO hubs in India and South Asia. Hyderabad is often referred to as “Cyberabad,” because of the large number of IT firms in the city.
The decision by various companies that have chosen to locate their operations especially in this area is based on parameters such as: leveraging local experience and assets, spreading to reach right skills at right costs and business continuity requirements. That’s why for instance World Multi National Companies (MNC) in the IT sector usually put its first foot in this zone and plan to expand only after consolidation.
However, the industry is facing nowadays several key challenges, such as the need to sustain competitiveness in the face of alternative emerging locations and enhancing supply of quality human capital to cater to increasing demand. Efforts in this direction are already underway in India. Continuous emphasis on the same is imperative to ensure that the industry’s future growth is undeterred.
Moreover, there is a large amount of disparity within Southern India. As IT companies have entered the economic arena, the economic standing of young and educated professionals has raised, while the poor has become less and less able to afford basic necessities. Remains a question: how long would India be able to sustain her impressive showing?
