Temple town Madurai is the next BPO hub in the making. The IT boom is now trickling into smaller towns and cities in southern India.
HCL is investing to set up one of its largest facilities, after its Noida plant. Other companies, which are logging into Madurai are Satyam Computers, Honeywell Tech Solutions and Sutherland Global Services.
Madurai contributes Rs.7000 crores to the state’s revenues annually.
Source: CNBC India
According to a recent study conducted by consultancy firm Everest Group, the increased real estate prices and a talent crunch in metros are forcing the $11 billion Indian BPO industry to move to tier II cities in the country.
“It is difficult to maintain the growth in tier I cities because of the rising real estate prices and talent crunch. There is no option but to move to tier II cities,” Everest Group’s Country Head (India) Gaurav Gupta said.
Currently, BPO industry is concentrated in seven cities namely Bangalore, NCR, Mumbai, Pune, Chennai, Hyderabad and Kolkata.
“Movement to lower-cost cities within India is likely to result in additional 15 to 30 percent reduction in operating cost despite lower employability and higher management costs,” head of Global Services at Everest Research Institute Nikhil Rajpal said.
Everest Group is a global consulting firm specializing in sourcing and offshoring advisory services. The study ranks several tier II and tier III cities on their potential to become the next BPO hubs for various domains in the future.
For finance and accounting services, Ahmedabad, Nagpur, Jaipur, Indore and Nashik/Nasik emerge as ideal cities to host BPO firms.
Similarly, Nagpur, Vishakhapatnam, Ahmedabad, Mundra, Coimbatore and Madurai are ideal locations to have BPO operations in logistics domain.
Sourcing from SI
Sundaram Finance BPO arm to foray into Tier 2 city in Tamil Nadu SBS to open new BPO facility in Madurai Plans to hire 500 employees in Madurai in 12 months
Chennai headquartered SBS (Sundaram Business Services), the BPO arm of leading financial services company, Sundaram Finance, has announced its first expansion into a Tier 2 city with the setting up of a BPO facility in Madurai.
SBS’s new 12000 sq. ft BPO delivery facility will come up in the heart of Madurai city and will become operational by the middle of next month. As part of this expansion into Madurai, SBS plans to hire over 500 employees for its Madurai facility over the next 12 months.
On the reason for choosing Madurai for its latest BPO facility, P.S Raghavan said, “ Madurai’s infrastructure is impressive for a city of its size. The city has a robust public transportation system, and a well-developed intra and inter-state bus and railway systems. With well established and renowned educational institutions, the city offers quality talent pool for us to tap into as we expand our BPO presence.”
Sundaram Infotech Solutions & Sundaram Business Services have an expanding global presence with offices at UK, USA, Australia, Singapore, Middle East, in addition to offices at 4 centres in India.
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