IT MNCs' India-based subsidiaries eyeing Tier II, III cities for growth: NASSCOM

IT trade body NASSCOM today said revenue generated from Indian subsidiaries of global IT companies stood at $19 billion in 2014 and these firms were looking at expanding to small cities and towns.

"Some of the key priorities for 2015-16 is to enhance digital capabilities identified by GICs (Global In-House Centres) and spread out to Tier II and III locations", NASSCOM President R Chandrashekhar told reporters here on the sidelines of a two-day Conclave on Global In-House Centre.
Reuters

Reuters

Global In-House Centres (GIC) or Indian subsidiaries of global IT companies, are considering cities such as Vadodara, Jaipur and Coimbatore.
Asked whether India was facing any competition from the Philippines in the IT sector, he said the availability of infrastructure and living cost may make others to move to other locations.

"You will still find different kind of companies gravitating to other locations based on what they are trying to do. I do not think, one shoe size fits everybody. There are certain kinds of things like Bangalore, is and will remain the most preferred locations", he said.

Noting that it was "important" to develop multiple locations in the country, particularly, Tier II and III locations, he said, "if you are able to develop the Tier II and III segments, we can compete with any locations anywhere in the world".

"Development of Tier II and III locations helps India to be competitive vis-a-vis other locations anywhere in the world", he said.

Referring to the growth of GIC companies, he said, the number of such companies crossed over 100 in India compared to 750 in 2005.

According to him, GIC companies in India employ about 7.45 lakh people. Majority of activity undertaken by GIC companies was in engineering, research and development and software product development contributing 59 per cent of the total revenue.
PTI

Updated Date: Apr 24, 2015 13:10 PM

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