MNCs in Hyderabad City Outskirts Interested in Doing Business With Little Concern for Their Employees

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.

Big businesses don't care for local people


Outskirts are highly risk-prone
Offices situated in outskirts are isolated and there is no assurance of safety to the employees from companies during night time. Very less (one can actually count) common public is seen around these offices during night and there is very less frequency of public transportation.

As the safety levels are low, this makes it easy for the criminals to find their prey. We can see many incidents like mugging, sexual assaults on women, etc., taking place in city outskirts. Yet these MNCs have no concerns on this issue. Do read our next article on “IT/ITES Offices in Outskirts Putting Women Employees at Risk of Assaults”.

Colonial attitude of companies
Setting up companies in outskirts of the city shows colonial attitude of the company towards its employees.

There is a competitive advantage to be gained by companies being located in outskirts. We hope MNC companies give attention to this issue and consider having their premises in city centre to ensure safety of their employees and improve the quality of their life.

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Traffic in Hyderabad City Center

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One Response to “MNCs in Hyderabad City Outskirts Interested in Doing Business With Little Concern for Their Employees”

  1. sivaram

    good article. I feel apart from the monetary benefits for companies there are other reasons for this decision.
    1) Probably regulations wont allow them to set up firms in city.
    2) Imagine the kind of traffic we have in cross roads as of today. What it will look like if one company employing 3000 people sets up operations in VST open area.

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