Financial Daily from THE HINDU group of publications
Saturday, Oct 29, 2005


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Industry & Economy - Infrastructure


Advantage Mysore — a tier-II city beckons

Preethi J.

Bangalore , Oct. 28

BANGALORE is growing more and more, and will get worse and worse, says a CEO of a company based in Mysore. If this caused you concern, maybe the heritage city could take away your blues. Not for a weekend of quietude, but as an alternative location to establish your organisation.

US-based Software Paradigms International set up an office in Mysore eight years ago. This Rs 45-crore IT and business process outsourcing services company says it was a decision taken for economic reasons. Costs spiral downward when you move away from the centre of attention. Prices of land are one-third that of the IT capital. "While the cost of land is Rs 1,000 per sq ft here, at Mysore it is only Rs 300," said Mr Sid Mookerji, CEO of Software Paradigms International, in an interview with Business Line on the sidelines of the three-day IT event BangaloreIT.in.

Flats in Mysore also cost only one-sixth of those at Bangalore. This will make it easier for those who migrate to the city and seek to settle down. The company has just invested in 11 acres of land and will complete the first phase, which will house 1,000, by January 2006.

The transport system is currently sufficient, and traffic is not an issue. To tackle future problems related to this, Mr Mookerji felt that planning would be essential. "At the end of the day, the Government is a facilitator. It is up to large enterprises and private entrepreneurs to guide the government," he felt. The four-lane highway between Bangalore and Mysore will be ready in three months, connecting the city to the silicon hub. The expressway and the airport will also enable connectivity to the rest of the world. The doubling of the broad gauge railway line from Bangalore to Mysore will also add to the city's advantages.

According to Mr Mookerji, technical infrastructure at Mysore has also improved considerably over the past few years. Not only is the city finally WiFi-enabled, telecom and broadband services being offered are now comparable to the more populated cities. "The network now is really good," he said.

In terms of pollution too, Mysore seems to have the winning hand. Bangalore is 14 times more polluted than Mysore. Quality of life, the one factor that helps retain employees, is also improving in the city. While entertainment-wise the city does not have much to offer, Mr Mookherji felt it's a matter of supply and demand.

The city is undiscovered in terms of IT. And, according to the company, is more suited for BPO. While Mysore, as a brand, has not been recognised by many, it is definitely growing into one. In terms of retention, Mysore has an advantage. Attrition in this city will be comparatively lesser, says Mr Mookerji, as it will involve relocation. People will not be able to just "hop around the corner" and join another company. This, however, also means that lateral hiring will be a hurdle for employers.

Mr Mookerji finally offers this advice to those seeking to move away from Bangalore, "Think about the cost, along with important factors such as connectivity, infrastructure, availability of skilled resources and quality of life." Location, location, location - the three most important factors in real estate (according to popular author Ayn Rand) - still remains uppermost on the mind of the IT entrepreneur. Here's hoping tier 2 cities are the answer.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Tata Safari Dicor

Stories in this Section
Summer placements at IIM Kozhikode


Depression splits into two off AP coast
SEZ trading units allowed to import duty-free fuel
Australian State opens trade office at Bangalore
IIFT to set up branch in Kolkata
Advantage Mysore — a tier-II city beckons
Lack of supply may jeopardise Kochi LNG terminal project
Govt to focus on setting up mega thermal stations
`RIL to offer Rs 750 cr discount on LPG, kerosene'
`Assocham for country-wide acceptance of VAT'
SMEs in AP seek stamp duty exemption
Chanel plans formal launch, sees good potential
Saluting Rahul Dravid
RPG Group to set up B-school in Kolkata
`Technology must be a business enabler'
It's unfair to say only women want to be fair
Bengal Govt vetting Wal-Mart proposal — Govt favours FDI but not at the expense of local biz
Slowdown in world trade growth likely, says WTO
S. Asian trade experts worried over Hong Kong WTO meet
`HR is growth engine for business'
RPG Group to set up B-school in Kolkata
Egg exporters cash in on avian flu fears — Disease-free poultry farming helps gain advantage in global market
Most manufacturing units in Chennai resume operations


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line