Is Noida The Next IT Hub After Bangalore And Gurgaon?

By RimTim Staff Writer
February 24, 2017
Noida as Next IT Hub

Bangalore is considered to be the Silicon Valley of India. But of late, Bangalore has been facing a lot of competition from Gurgaon, and surprisingly, from Noida. There are today several IT companies in Noida and the city is fast emerging as an IT hub in its own right.

The IT companies in Noida include some of the biggest names in India. Every year, tens of thousands of new jobs are being created in Noida’s IT, ITes, KPO and BPO industries. This comes at a time when the IT industry in Bangalore faces a slowdown.

New change in the future of IT jobs in India

  • Decision of relocation: Many IT companies in Bangalore are looking to move elsewhere, to Hyderabad, Gurgaon and now Noida, because of the inefficiency of the state government. Not much has been done to provide a solution for the insane traffic on Bangalore’s roads. The water supply problem seems to be getting worse by the day and sanitation and garbage disposal are other critical issues in Bangalore.
  • New options: 15 percent of the respondents wanted to shift to Pune, and 10 percent wanted to Mumbai or Hyderabad. But clearly, Noida and Gurgaon were the most preferred alternatives to Bangalore in the Assocham survey. Many companies also insisted that they were not going anywhere out of Bangalore, so it cuts both ways.
  • Survey: A recent study by the Associated Chambers of Commerce and Industry of India found that many IT companies are indeed looking for an alternative to Bangalore. Noida and Gurgaon are very popular with many multinational IT firms looking to set up a base in India.

The Assocham study was based on a survey of over 800 CEOs, CFOs, and directors of many Indian and multinational IT companies. 30 percent of the respondents in the survey said that they were willing to move to Gurgaon, while 25 percent said that Noida and Greater Noida offered a compelling alternative.

According to ASSOCHAM secretary general D.S. Rawat, Gurgaon is a compelling alternative to Bangalore for the following reasons: “Gurgaon’s cosmopolitan culture, modern infrastructure, availability of skilled workforce, closeness to Delhi along with industry-friendly government policies are the factors which gives it an edge over Bangalore.”

Problems faced by IT companies in Gurgaon

But Gurgaon has problems with unplanned development, which led to the flooding of several areas in the city during the rainy season of 2016. In Noida, a lot of thought has been given to the city development, and the Noida-Greater Noida corridor, where most of the companies in Noida are located, is one of the best planned IT Parks in India.

An event was organized by The Indian Express together with Assotech recently in Noida, where a wide ranging discussion was held on the city’s potential of emerging as India’s next IT hub.

IT company in Noida

IT jobs in Noida on the verge of becoming the next big IT hub

  • Noida the upcoming IT hub: With other cities such as Noida developing their infrastructure at a rapid clip, Bangalore faces competition for the every first time since it emerged as the Silicon Valley of India in the late 1990s.
  • Better infrastructure: Many Uttar Pradesh government officials spoke about the steps taken to improve the infrastructure and public transport in Noida. Parmit Garg, a Project Director at DMRC who in charge of the Noida-Greater Noida corridor said that Noida-Greater Noida would soon have a city wide metro network, becoming only the second city to have this facility in India after New Delhi.
  • Survey: Mr. Garg said, “A high capacity metro system is being planned in the city. Sustainable transport is a must for any city to grow as a corporate or an IT hub. We have a unique model here where two authorities have joined hands to bring in the metro. I must complement the authority and the state government for taking this pre-emptive action to bring in metro connectivity in these two areas.” Dharmendra Kapoor, COO, Birla Soft also spoke at the event and had encouraging words to say about the future of the IT industry in Noida: “An image was created in the beginning of it being a manufacturing hub, but slowly the image of an IT hub has come into being. We have been operating in Noida for more than 20 years – grew from 20-30 people to 3,000 people.”
  • These are encouraging words indeed. Noida has everything an IT company would need, such as a great infrastructure, a high standard of living to attract the best talent, and a proper, well-planned city development. There are today hundreds of IT companies in Noida. The Noida – Greater Noida corridor is certainly emerging as a major threat to Bangalore and Gurgaon’s dominance in the IT, ITes, BPO and KPO industries.

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