Many big Indian and foreign multinational companies (MNCs) like Google, Microsoft, Infosys, TCS, Oracle, etc., have set up their businesses in Hyderabad city. They have provided thousands of jobs to both Hyderabadis and non-Hyderabadis. I appreciate their contribution to new job creation. But the issue here is, why these MNCs chose city outskirts to set up their companies and why not city centre.
Haven’t they thought for a second that by moving to outskirts they are putting their employees at a risk (we discussed on the assaults on employees in the city outskirts in our next article) or is it that they really don’t care for their employees? What is obvious here is they are looking for cheaper properties in the city outskirts – not bothered about employee safety. It’s high time they correct themselves.
MNCs’ differential standards in Hyderabad
Most of the MNCs are around 18 to 20 kms away from the city centre. This forces us to believe that these companies are showing differential standards in Hyderabad by setting up offices in the outskirts of the city. The same companies have offices in city centre in countries like the US and the UK.
For example, Google is considered as one of the best places to work. They say Google is employee-friendly. Interestingly, all their offices in the US and in the UK are in the city centre. But when it comes to Hyderabad, India, Google’s office is in Kondapur village, which is 16 kms away from the city centre. If someone is 8kms away on other side of the city centre, then he/she has to ravel to work for 24kms, which is no joke when you need to go through city centre for most of the distance in heavy traffic and repeatedly doing it every day is even more painful.
Are MNCs hesitating while investing in Hyderabad?
All these MNCs are multimillion companies and it is not that they can’t afford a property in city centre; they can, but they are relying on the government subsidies and exemptions. It looks like these MNCs are hesitating while investing in Hyderabad. Here in Google’s case,
- It spent around Rs.11,685 crore for a single office building of 2.9 million sq.ft in New York city centre and 15 acres in Palo Alto spending approximately Rs.420 crores ($66.7 million), moving closer to San Francisco.
- In the UK, Google spent Rs.6,150 crore to buy a plot of 2.4 acres in King’s Cross, centre of London city.
- Google had to spend Rs.6,150 crore just to buy a 2.4 acres of land. If the same 2.4 acres of land was purchased in Hyderabad city centre, assuming in Hyderabad city centre it is around Rs.50,000 per sq. yd., then it would have not costed them more than Rs.58 crore. Just see the comparison.
If you take a look at the above point, it is very clear that Google has no issues on spending crores of rupees while buying property in US and UK city centre. Whereas in Hyderabad, they want property at a cheaper price. Why do they have this difference? Does anybody have an answer to this question.
It shows that MNCs are more interested in acquiring properties at a cheaper price, it is neglecting the security and ignoring the convenience of its employees. It is not only Google that has this kind of attitude, it is the same case with major MNCs in Hyderabad. We have taken Google just as an example. But, on the other hand, Intergraph, DE Shaw and ADP have not blindly followed the others and they stayed predominantly in the city centre.
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