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Karnataka govt to promote tier two cities

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DQW Bureau
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With the IT hub Bangalore facing problems like infrastructure issues, rising
wages and high attrition due to explosive growth of the industry, the State
government is wooing investment into secondary cities like Mysore, Mangalore,
Manipal, Hubli, Dharwar and Gulbarga.

During BangaloreIT.in, a conference was based on the theme "Beyond
Bangalore" that looked at companies that successfully set up operations in
tier-two cities and looked at the advantages and pitfalls of selecting a
tier-two city.

Tanveer Sait, Minister for Labor, Government of Karnataka, said that most of
the tier-two cities except Gulbarga had an airport. "Many companies like
Infosys, Wipro, MphasiS and IBM have already set up operations in Mysore. We are
making sure there is adequate connectivity in all these cities."

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BS Patil, President of BIC, a private-public partnership society said that
the Hubli-Dharwar region was emerging as an attractive destination for BPO
companies. "MphasiS is seriously considering a proposal to set up a
facility in Hubli."

Among the various cities, Mysore is emerging as the most popular option owing
to its proximity to Bangalore. Sid Mukherji, Director, Software Paradigms India
(SPI), a software applications company traced his company's successful growth
in Mysore. While software export figures and the ecosystem were undeniably the
best in Bangalore, he cited factors such as reduced commute time, low rents, low
pollution levels and better quality of life in Mysore's favor. "Companies
should look beyond a brand when they are thinking of making multi-million dollar
investments," he said.

Kurian James, CEO, Manipal Informatics, a BPO based in Manipal said that
Karnataka is ideal for BPO companies since Karnataka accents are the easiest to
neutralize among South Indian accents.

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