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Satellite image of Guwahat 
Road Map of Guwahati
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The present scenario in the IT-ITeS sector is very favourable to the setting up of IT Park in Guwahati. The continuing cost pressures which characterize the metropolitan cities of India are forcing more and more companies to look at tier II cities with cheaper real estate costs. Some of the key drivers underlying the growing attractiveness of tier II cities as IT destinations include: Limited space availability in tier I cities: IT and software development in different parts of the world is characterized by a strong tendency towards clustering because of economies of agglomeration. But the concentration of Indian IT industry, growing at a CAGR of 48% since 1991-92, in a select few metropolitan cities, is being constrained by limited availability of space suitable for IT industry in these cities. Increasing cost of land and rentals: With space becoming scarce in the tier I cities, cost of land and rentals are increasing to unsustainable levels. With rental cost constituting approximately 5% to 7% of revenues for most IT companies, higher rent / space cost is translating to a significant adverse impact on profitability. Furthermore with rising employee costs, IT companies are targeting reduction in rental cost by shifting to tier II cities to retain their overall competitiveness. This situation is likely to be further aggravated on account of the imposition of service tax on rentals and higher excise duties on cement which is the primary raw material for construction of new facilities. Increasing load on civic infrastructure in tier I cities. Due to natural growth in population, tier I IT destinations are facing problems of over-crowding and congestion. Quality of life has deteriorated in these cities due to the heavy load on urban infrastructure in terms of roads, residential facilities, water supply, sewerage & drainage, electricity etc. Reduced staff attrition rates: High attrition rates, currently averaging around 15% in the Indian IT industry, have been an impediment for growth for this industry. It has been traditionally observed that tier II cities have lower attrition rates. This has increased attractiveness of these cities to IT companies City like Guwahati, has got quality human resources, would be well poised to service the needs of IT companies provided there is proper infrastructure created for them to develop an eco-system. Further, the strong growth of the ITeS sector provides ideal opportunity for the youth of the state to get employment with some soft skills training. Alredy GSM operator like Air Tel, Air cell and Reliance has started their Back office operation in the city employing more than 500 youths. Demand from various national level Banks and Insurance players to start their call centre is forthcoming to the State. ..................................................................More | ||
