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According to the Dataquest analysis for high-value work, skill sets will be the most important parameter while deciding on the location. However, for volume jobs, the ability to ramp up will become the deciding factor. Bangalore, for example, has a lot of skill sets but people have already started doubting its ability to absorb growth. It is not a question of real estate but the pressure on infrastructure that the city has
started experiencing. Dataquest believes that Bangalore will continue to grow but will start pushing low-value jobs to Hyderabad, Chennai and smaller locations within Karnataka while retaining the high-value work. This may happen sooner than expected.

Beyond the big three, only three locations have been able to build some mindshare-Hyderabad, Chennai, and Pune. As per the Dataquest study on -reality mapping, Hyderabad leads in perception. Though it still leads in reality, it will carry an element of hype about it, with all big players queuing up there. Chennai remains a destination where a lot of high-value work is being done, but there is an absence of major players there (captives do not create too much hype).

The way the industry is growing, BPO companies will have no option but to look beyond these 5-6 cities sooner than later. While state governments' cooperation is a necessary condition, it is not sufficient enough for companies to set up operations.

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* Contributed by -
Ankur Pawa & Nishant Choudhary,
Indian Institute of Management,
Lucknow.