Hyderabad Sweeps Over Bangalore As Infrastructure Hub For Outsourcing

June 1, 2011

India’s domination of the outsourcing industry has contributed to the growth of key cities in the country; one of these is Hyderabad, located in the center of the state of Andhra Pradesh. Lately, the city has been referred to as ‘Cyderabad,’ since it hosts offices and facilities for the latest tech firms like Google and Dell.

For a long time, Bangalore was touted as the hub for customer service and bpo centers. But the city has aged after the outsourcing boom and its infrastructure has taken a beating. Now Hyderabad stands to gain from the rebound in offshoring – it is already a vital part of India’s crucial economic engine, reports the Globe and Mail.

Hyderabad’s cost of living is still low. The city can afford to take on outsourcing projects that push down price factors, while Bangalore has transformed into an overcrowded city. Satish Devaragudi, Scotiabank’s manager said, In terms of cost of living, Hyderabad is much cheaper than Bangalore and this is true for commercial spaces as well.

Availability of land is another resource that attracts investors to the ‘Hi-Tech-City.’ For every complex that goes up in this city, there is another being built. York University is setting up a Schulich MBA program in Mumbai and its executive director, Ashwin Joshi is awaiting legislation that would enable foreign schools to offer degrees in India. Once approved, he plans to assist in relocating their campus to Hyderabad. Joshi plans to use GMR Group, the infrastructure company that built a world-renowned airport in the city.

Joshi said in a comment, Hyderabad is unique in that it may be singled out to be the Indian city with infrastructure is far ahead of demand. In contrast, he added that, cities like Bangalore that have participated in the country’s top outsourcing deals with blistering growth are already a generation behind.


2 Responses to “Hyderabad Sweeps Over Bangalore As Infrastructure Hub For Outsourcing”

  1. Outsourcing Solutions on June 2nd, 2011 1:30 am

    Hyderabad or Bangalore every city of India will soon become quite efficient for the current Outsource boom. Recently Kolkata which is another big city of India is raising rapidly and the living cost is cheapest out there. No doubt it called the city of joy.

  2. Jacob Cherian on June 2nd, 2011 8:42 am

    True. Indians have a lot to be joyful about. Outsourcing has been a flagship industry; one of the only industries that has been buoyed by demand during the recession’s two year period.

    With economic growth at a blistering speed of 8.2% or higher, India could soon become a lucrative market for the U.S. and Europe.

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