System error in India's Silicon Valley

Thru Asia Times Online

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It is the unexpected corners of the country - the smaller towns and cities - that are rapidly emerging as the new magnets, especially as outsourcing centers. A study conducted by the National Association of Software and Service Companies (NASSCOM) with management consultancy major KPMG says such cities as Jaipur, Pune, Mohali, Ahmedabad, Vizag and Kochi are increasingly attracting IT and outsourcing firms.

The study pointed out that Jaipur, hitherto ignored by big IT companies and outsourcing firms, is poised to emerge as a major hub because of government initiatives and several attractive features of the city itself. 'Jaipur retains the advantage of a small city - lower travel time and real estate and power availability. It has gained global visibility as the tourism hub of Rajasthan and is trying to leverage this for IT and ITES [IT enabled services] industry,' the study said. According to NASSCOM, about 30% of India's outsourcing revenues ($12.5 billion last year) will be headed to smaller cities within a few years.
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