MUMBAI, INDIA: It's more than a decade since cities likes Mumbai, Chennai, Bangalore, Hyderabad, Gurgaon, Noida and Pune have emerged into top IT centers in India. The availability of IT professionals, good infrastructure support and cheap services has allowed IT industry's growth in these centers.

However, there are businesses and companies based abroad have looked for an alternative to these established IT hubs within India for cheaper services that further cut-down its operational and business costs.

Some of the cities in Gujarat, like Ahmedabad, Gandhinagar, Vadodara, Surat and Rajkot offer a good option for cheaper IT services and support.

"IT industry's growth in Gujarat is witnessing a changing landscape, literally. Most big and small players are not restricting their expansion plans to a select few IT hubs, but are making inroads into tier II and tier III cities," said Col P K Mishra, human resource and administration head, eInfochip – the Ahmedabad based chip design and software solution enterprise.

Mishra reckoned that the key factors affecting the IT firms' location decision are labor cost and its availability, real estate, business environment along with physical and social infrastructure.

About the changing business scenario in the state, and in particular Ahemdabad, Mishra said, "Many IT enterprises working on international projects have setup headquarter and brand offices in Ahmedabad. Senior executives from Siemens, Intel and Philips have joined eInfochips because they find the city a better place to live and work against other Indian IT hubs."

Further he added, "Ahmedabad offers excellent infrastructure, housing solutions, rich lifestyle, transport and food at affordable costs." 

In terms of IT business and operational cost, Reytrance Technologies's IT manager, Keyur Kapadia stated, "Here, IT services costs are 50-60 percent lower than Mumbai, Bangalore, Pune and other cities."

Kapadia's firm offers IT services and SMS marketing solutions in Surat.  

However, these emerging new IT centers that are categorized into tier II and III cities have to constantly face the issues of retention, migration and low supply of IT professionals from the local talent pool.

According to Surat-based Silicon Software Solutions's CEO, Ramu Chityale, retaining local talent is a major issue for IT companies here.

"At times, when professional quits the job his absence does hamper the projects for certain period, before someone else gets into his place," Chityale stated.

This company provides ERP services that include, development, deployment and other related services. 

"We take a lot of efforts in generating and enhancing the raw talent from college level. We provide better working opportunities as per the talent and skill of the individual rather than hiring experienced and skilled staff," he reasoned.          

While, the IT companies constantly face with retention issue, they are forced to find some way to overcome its effects on international projects, business and reputation.

"After offering training and internship to candidates, companies ask them to sign a yearly work bond," explained Kapadia.

Further, he pointed that a lot of manpower churning occurs in Surat city.

"The local talents are seeking better job opportunities at other cities, which offers high pays and working environment. This shifting or migration of local professionals does affects the expansion of IT here."

For some IT firms bonds is a way to hold the staff, while other takes technology's help and other methods.

"We strive to develop our staffs via our training programs such as Laagan (Soft Skills development program), Pegasus (Project Management skills development program) and Altius (Leadership Development Program)," explained Mishra.

Moreover, eInfochip follows the performance based pay system to reward its staffs. For the senior and top-level staffs, the company has Employee Stock Ownership Plans (ESOPs). The rationale behind this is not only financially attractive but also enhances the sense of ownership.

"Other technical training programmes are aimed at continuously upgrading our employees' skills so that both individual and corporate growth are linked to the vision of the company," Mishra concluded.