Hyderabad – A favorable outsourcing destination for International companies
Author: BK Vijay
Hyderabad, the capital of new Indian state,Telangana, holds one of the top positions in the list of world’s best outsourcing destinations. Right now the city of Hyderabad is competing with Bangalore as more and more overseas firms are finding this place more convenient and effective to outsource their projects in product development, customer sales & service, finance, software development & testing etc. Earlier, Indian outsourcing industry was more concentrated in famous metropolitan cities like Delhi, Mumbai, and Bangalore as others places had incommodious situation for growing business. However, over the past few years, Hyderabad has become a nurturing ground for many start-up firms and corporate development centers. Many major international companies have opened R&D and application development centers in Hyderabad because of favorable infrastructure, ample resources, decent cost of living and availability of skilled professionals.
Hi-tech city of Hyderabad, emerged as outsourcing Hub
Hi-tech (Hyderabad Information Technology and Engineering Consultancy) city is more familiar place for residents of Hyderabad, especially for IT professionals as larger number of IT companies, consulting firms, and BPOs are more concentrated in this locality. This technology township located in the north western part of the city called as Cyberabad, has many famous IT parks accommodating technological big wigs like Wipro, TCS, Infosys, Oracle, Microsoft, IBM and others. The place has also attracted global investors from various entities, not only due to the flexible policies of the state government but also favorable infrastructure for outsourcing. Almost any outsourcing service, be it an IT software development or help with the BPO services, many multinational corporations have realized that Hyderabad is the best place to find the right service provider for their business requirements than any other city.
Another major reason for off-shoring the projects to Hyderabad is, Bangalore which has established longer presence in software industry from decades positioning itself in the top for outsourcing, is slowly losing its stance because of high cost of living, sky rocketing real estate prices and exploding population. Most of the multinational corporations have assessed Hyderabad as one of the fastest growing cities with cheaper infrastructure & operational costs than many other metropolitan cities.
Why Hyderabad is better than other cities in India for Outsourcing?
- When it comes to education and training IT professionals, Hyderabad occupies one of the top positions in India. It is said that the city produces large number of highly qualified professionals from its pool of top ranking universities and major technical institutes like IIIT, JNTU, Osmania University etc.
- Hyderabad provides best opportunities for educated professionals to start and build their careers in leading outsourcing destinations like IT / ITES, BPOs, and other back–end support processes.
- Hyderabad has separate designated district called Cyberabad, spread across huge area within the city limits, facilitating office space for many domestic and international companies. Added to that, the political system of the Telangana state has always been favorable for doing business unlike other outsourcing states.
- The city stood second among the largest providers of IT-enabled services in India, as many corporates are finding this place more convincing for new business opportunities due to robust infrastructure and flexible government policies.
- Hyderabad has always been a city of happiness with good weather, best cuisine, historically rich and above all, friendly diversified atmosphere that can accommodate various cultures. In fact, Hyderabad was ranked as the 2nd best MICE (Meetings, Incentives, Conferencing and Entertainment) destination in India after Delhi for hosting more number of conferences than any other city.
- Availability of expert professionals is another major reason as finding the right skill in various technologies and platforms is more easy in Hyderabad. Many professionals prefer to live and work in Hyderabad than other cities like Bangalore, Mumbai etc because the place has diversified culture, cheaper real estate and low value of expenses when compared to other major cities.
- Operational expenditure for businesses is low in Hyderabad as the cost of infrastructure and labor is cheaper than other Indian outsourcing locations, such as Delhi, Bangalore, Mumbai, Chennai etc.
- When it comes to accessibility, Hyderabad is very well connected to all other cities and international destinations than any other major south Indian cities. The Rajiv Gandhi International Airport (RGIA) of Hyderabad has been ranked as one of the best in the world in terms of service quality and infrastructure.