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Emerging Cities-
India perspective
Developing cities outlook (2014-2015)
Emerging Cities- India perspective - 2014/15
01
43.64 10 15 5 Indian Emerging Cities
Million cities cities cities IT/Technology Talent Outlook
Total Population
he
st n
n
to
20 the
n 2014-2015
les illio 10 illion ater llion
e
1M M Gr 0 Mi
2
Total IT/Technology Installed Talent Pool in Total IT/Management Upcoming Talent Pool in
Emerging Cities Emerging Cities
248,000 355,000
10 out of 100 IT Talent pool is available in Indian Emerging cities
Ecosystem
Industry
Total Talent pool R&D Talent pool across around 130
R&D Talent pool IT companies
IT services Talent pool IT services Talent pool across 5,250
BPO Talent pool
all IT companies
BPO Talent pool across around 250
IT companies
Gender Diversity for Talent Pool Total Students across all 130
universities
Ecosystem
Education
127
These Industrial Associations/Bodies are operating at
both city level and state level which ensure support for
IT industry in respective cities and states. Industrial
Associations ~ 15% ~ 25%
These IT Parks are providing the land, infrastruc-
20
STPI is a government initiative to boost
the IT industry in the respective cities by
providing various support and benets.
STPIs
~ 2.5% ~ 13%
SEZs are the business friendly zones declared
02
Emerging Cities- India perspective - 2014/15
Ranking Overview
Technology readiness of the city is the underlying factor for the investment of an IT-BPM Taking a deep dive we identied the
company. The most attractive cities are those tenacious, persistent ones that persevere following trends among these cities:
through the ups and downs regardless of what is thrown at them economically, political-
ly and environmentally. According to the business establishments, the emerging cities in
India were classified into Technology hubs (presence of IT/BPM companies and technol- Ahmedabad is ranked 1st among
ogy, human capital is above average) and Business hubs (presence of other business all the cities as the city has bagged
apart from IT/BPM is well established). 10 point rating was given to these cities, of which the top position in three parame-
Ahmedabad, Coimbatore, Kochi, Chandigarh and Jaipur have bagged the top five ters, namely Talent pool ecosys-
positions clubbing parameters like Talent/Human capital, Infrastructure/Support and tem, Ease of Doing Business and
Cost Advantage. What's perhaps more interesting than the ranking is that the population Economic Indicator and 2nd in
of the top 5 cities is not at par with each other but still competing at an equal pace. training ecosystem, accessibility
and connectivity.
How the cities rank
City Type City Rating Rank Coimbatore is holding the
Technology Hub Ahmedabad 8.06 1 second position overall as it has a
Technology Hub Coimbatore 7.83 2 good training ecosystem for
Technology Hub Kochi 6.29 3 software courses and best in class
Technology Hub
infrastructure facilities in terms of IT
Chandigarh 6.25 4
parks, SEZs and other utilities. The
Technology Hub Jaipur 6.15 5
tie-ups among colleges, companies
Technology Hub Indore 5.60 6 and presence of IT bodies are good
Technology Hub Bhubaneswar 5.15 7 enough that lies as a reason for its
Technology Hub Thiruvananthapuram 4.99 8 position.
Technology Hub Mysore 5.45 9
Technology Hub Visakhapatnam 5.16 10
Technology Hub Nagpur 4.79 11
Technology Hub Lucknow 4.55 12 Kochi has attained the 3rd posi-
Technology Hub Vadodara 4.33 13 tion among the emerging cities,
Technology Hub Madurai 3.86 14 unlike other cities. Kochi has a
Business Hub Bhopal 3.69 15 mixed set of advantages clubbing
Technology Hub Vijayawada 3.70 16 Human capital and Infrastructure
Business Hub Nasik 3.59 17
together. Around 30,000 IT-BPM
workforce is deployed in IT-BPM
Business Hub Kanpur 3.51 18
companies in Kochi
Business Hub Aurangabad 3.33 19
Business Hub Dehradun 3.04 20
Business Hub Gwalior 3.17 21
Business Hub Allahabad 3.16 22
Business Hub Jodhpur 2.85 23 Vijayawada has ranked the least
Business Hub Rajkot 3.12 24 among all these technology hubs,
Business Hub Raipur 2.63 25 as the IT ecosystem still needs to
Business Hub
develop many folds to compete
Salem 3.31 26
with its peer level cities. However,
Business Hub Guntur 3.15 27
according to the employee's
Business Hub Bareilly 2.83 28 perspective, Vijayawada is the 3rd
Business Hub Meerut 2.93 29 most attractive city among these
Business Hub Bhilai 2.42 30 emerging cities to work.
Source: ResearchFox Emerging Cities Outlook 2014-2015
03 04
Emerging Cities- India perspective - 2014/15
Infrastructure/Support
AURANGABAD
Ease of doing business 30%
BHILAI Facilities & Infra 30%
Talent
Source: ResearchFox Emerging Cities Outlook 2014-2015
Cost Advantage
The three dimensional ranking model facilitates the user to understand each and every city with respect
to its competence. Ahmedabad occupies the top position in the 4th quadrant with a big bubble size,
which indicates that it that city has the best talent, infrastructure and cost advantage. Many other cities
like Coimbatore, Kochi, Chandigarh, Jaipur, Bhubaneswar are also placed in the same quadrant, but
with minimum dierence according to its overall position. The 3rd quadrant accommodates relatively
less developed cities like Vadodara, Lucknow, Bhopal and a few more which indicates that the technol-
ogy readiness needs to be developed. Whereas Bhilai and its peer level cities are occupying the aspiring
city quadrant which denotes that presence of IT ecosystem is relatively not feasible for investments.
05
Emerging Cities- India perspective - 2014/15
hold the consecutive 13 NASIK 2.72 2.11 3.61 5.36 5.60 19.41
positions among these 14 VADODARA 3.95 3.33 3.09 6.83 2.20 19.39
technology hubs after 15 VIJAYAWADA 3.19 1.56 5.01 6.11 3.40 19.27
Among the emerging cities in 21 KANPUR 3.49 2.39 3.34 5.22 1.60 16.04
India, south India has made 22 GWALIOR 2.91 1.02 2.75 4.88 4.40 15.97
room for many training 23 DEHRADUN 1.94 1.64 2.55 5.54 4.20 15.87
24 ALLAHABAD 2.92
institutes that oer technolo- 1.57 3.34 4.84 3.00 15.66
25 RAJKOT 2.94
gy courses, cities like Coim- 2.15 3.01 4.56 2.20 14.87
26 BAREILLY 2.43 13.90
batore (1st position), Kochi 1.43 3.34 4.91 1.80
27 MEERUT 3.11 1.66 3.31 4.57 0.40 13.05
(4th position) and Mysore (5th JODHPUR
28 2.85 0.75 1.92 5.05 2.00 12.56
position) are hosting many 29 RAIPUR 2.51 1.58 0.75 4.91 0.40 10.15
training centers. Coimbatore 30 BHILAI 2.23 1.38 0.75 4.71 0.40 9.47
has over 200 training insti-
tutes, followed by Ahmed- Figure 1.1 Source: ResearchFox Emerging Cities Outlook 2014-2015
Mysore, Visakhapatnam and Ahmedabad and Chandi- Indore is heading all the Talent Pool 40%
Vijayawada have been the garh are the cities with best emerging cities in Industry/As- Training Ecosystem 20%
most preferred locations compensation benefit in sociation tie-up with 1 city
among these emerging cities, terms of human capital as the level, 3 state level and 5 IT Location Attractiveness 5%
considering the fact that average salary drawn are INR parks. Coimbatore and Compensation & Benefits 25%
these cities will improve in 3.61 Lac p.a. and INR 3.43 Ahmedabad are slightly
the near future as the metro Lac p.a. respectively. Coim- behind as the number of IT Industry/Association Tie-ups 10%
cities in that corresponding batore and Jaipur also give parks is only 4 in either of the
state have attained the an equivalent compensation cities.
saturated stage. benefit as the salary drawn
are INR 3.41 Lac p.a. and INR
3.38 Lac p.a. respectively. The
human capital cost is consid-
erably less in Vijayawada with
the average salary drawn by
IT workforce here is INR 2.20
Lac p.a.
06
Emerging Cities- India perspective - 2014/15
Facilities & Infrastructure 14 MADURAI 7.67 7.89 3.50 8.57 3.60 31.24
15 RAIPUR 9.07 6.56 3.26 7.69 4.97 29.58
Coimbatore has the best in 16 BHOPAL 9.07 6.56 1.83 7.91 5.36 28.75
17 DEHRADUN 6.05
class infrastructure with 3 6.44 2.64 8.13 4.97 28.23
18 VIJAYAWADA 7.56 0.94 2.05 26.02
Special Economic Zones, 4 7.67 7.80
19 JODHPUR 6.40 7.11 1.11 7.80 3.21 25.63
IT parks and other amenities 20 NASIK 6.86 6.78 0.00 8.02 3.83 25.49
to kick start the business and 21 RAJKOT 6.05 4.89 0.79 7.03 5.20 23.96
it is followed by cities like 22 GWALIOR 5.70 23.58
5.78 0.42 7.47 4.21
Bhubaneswar, Kochi which 23 KANPUR 6.74 0.45 7.58 2.68 23.56
6.11
share the same rank. Ahmed- 24 AURANGABAD 6.25 5.67 1.27 813 1.84 23.18
abad and Trivandrum are just 25 ALLAHABAD 5.70 5.44 0.90 7.69 3.14 22.87
a few points away from the 26 GUNTUR 5.81 4.89 0.00 7.58 3.06 21.35
top three cities, which hold 27 BAREILLY 5.81 5.78 0.00 7.36 2.14 21.10
the 4th and the 5th ranks 28 SALEM 6.40 5.44 0.00 6.36 2.30 20.62
respectively. 29 MEERUT 5.70 4.44 0.00 7.14 2.07 19.35
30 BHILAI 5.58 4.44 0.00 6.37 1.42 17.82
Figure 1.1 Source: ResearchFox Emerging Cities Outlook 2014-2015
tion in Accessibility and when it comes to economic Quality of life as the purchas- Facilities & Infra 30%
connectivity as it has the indicator before and after the ing power Index, safety Index,
highest number of flights to election. Cities like Bhubane- Health care index is relatively Accessibility & Connectivity 10%
International locations and shwar, Coimbatore and high and pollution Index, prop- Economic Indicator 15%
other important domestic Chandigarh also hold the erty price Index, commute
locations. Apart from this good positions in terms of time Index is low. Trivandrum, Quality/Standard Of Life 15%
Kochi railway station is one of economic indicators. Chandigarh and Ahmedabad
the busiest as it is well occupied the following
connected with trains from positions as the overall index
almost all the important was comparatively low.
cities in India.
07
Emerging Cities- India perspective - 2014/15
Talent Pool Ecosystem Training Ecosystem Location Compensation & Industry Connect
Attractiveness Benefits
Around 28,000 Quali- Around 75+ Training Around 28% of Median Salary of 6.26 4 Industrial Bodies
ty-IT Talent Pool Institute providing Product Develop- Lac/Annum for Tier I operating at a state
15+ Tier I and Tier II training on major ment/R&D Employess companies make city level and city level for
Companies Present, technology skills from indian cities most attracted from the betterment of IT
having a good R&D Around 30 Autho- have willingness to salary prespective, ecosystem.
presence rised Training work in Mysore which can go till 8 The productive Tie
Ahmedabad is a rising Institute providing 15% Employess from Lac/Annum for upper ups/MoUs of many
Center of Education, training at a major Senior Management value oerings like colleges with compa-
Information Technol- product/ technology position have product develop- nies and Training
ogy and Scientific skill level willingness to work in ment, ERP Implemen- institutes boosts
Industries with more Mysore tations, etc industry connect
than 40 Technology ecosystem in the city.
and Management
Institutes
Ahmedabad is 4 IT parks of which 3 City is connected Gujarat IT exports City with highest
considered to be the are notified under SEZ with around 300 from STPI for the year Quality of life index
best city for doing Domestic Flights and 2012-13 was INR. (i.e., 130.68)
business because of Around 129 Acres of around 50 Interna- 982.40 cr, in which Around more than 5
the favourable operational IT space tional Flights on a Ahmedabad was recreation centres
economic condition. weekly basis more among the Top within the city limits.
It is ranked # 5 Real estate cost than 60 trains pass contributors. Health care system
among all the cities advantage compared through Kochi which index is 58.33 which
in India and there by with many other connects to other is more than the
became one of the Technology hubs important cities in average of all Indian
most prefered India. cities.
locations for Round the clock
business start-ups. transit is made
available.
08
Emerging Cities- India perspective - 2014/15
Evaluation Criteria
The parameter considered for Talent/Human Capital
Parameter Description
It gives you the pulse of the upcoming technology talent pool,academic Infrastructure
Talent pool Ecosystem
(engineering colleges, universities, courses oered etc) and working population in IT sector.
Gives the preferred job location of the employees working in that location and also the talent
Location preference
mobility trend that is witnessed in the recent past.
Compensation & Benefit Showcases the entire gamut of C&B that includes, salary drawn by an employee according to
Analysis their experience level with respect to the skills upon which they work.
Industry/Association This provides information on IT Association/Bodies (at a City, State and National level) and also
tie-ups how they impact the business.
Parameter Description
Analyzes a wide blend of business indicators like starting a business in a city, dealing with
Ease of Doing Business construction permits, registering property, paying taxes, trading across borders and enforcing
contracts.
Facilities and
The index is measured upon number of IT parks and SEZs within the city limits.
Infrastructure
Accessibility and It is ranked upon taking factors into consideration like number of direct flights originating
Connectivity from that city to domestic and international locations, and also road and rail connectivity.
It covered a wide spectrum of pointers which includes money supply, labor laws, education
Economic Indicators ecosystem, monetary/financial benefits and culture.
Quality and standard of life Analyzes some of the parameters like rent index, groceries index, purchasing power index,
health care index, safety index and gives a holistic view of the city.
Cost
Parameter Description
Commercial and Provides you the estimate of rental/purchase rates per Sq.ft of residential and commercial
Real Estate Cost units (oice space).
Tax imposed on companies with respect to stamp duty, capital investment, tax for
Tax structure
registering property are made available.
Utilities Electricity cost, petrol and diesel prices are made available for the corresponding city.
09
About EmergingCitiez
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate
and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on
such information without appropriate professional advice aer a thorough examination of the particular situation.