Wednesday, December 13, 2006

Unravelling the Myths - II

3) It makes it possible for TN to attract “talented migrants” like Bangalore.

Chennai is a leader based on available labour and low attrition whereas Bangalore suffers due to high attrition rate.

The above link talks about the
A T Kearney’s Indian City Services Attractiveness Index 2005

One of the primary reasons that was stated for Chennai being “attractive” for investments is because it had a lower “attrition rate”. This “lower attrition rate” is largely attributed to the “stable population” in Chennai while B’lore has a “floating population” that would be willing to shift bases quite often unlike Chennai which produces the man-power from its “internal human resources”.

While this is not the only reason for the attrition rate, this plays an important role in keeping the attrition rate low according to Nasscom survey.

4) Hyderabad/AP has better software growth because they speak “hyderabadi” which helps to attract new talents from north India.

Karnataka logged in a software export growth of 36 per cent to touch Rs 37,600 crore for 2005-06 from Rs 27,600 crore during the last fiscal. Tamil Nadu's contribution during the fiscal was Rs 14,115 crore (Rs 10,730 crore) and Andhra Pradesh touched Rs 12,521 crore (Rs 8,270 crore), according to numbers released by respective STPI centres.

While there is a huge difference between Karnataka and TN in terms of software exports, AP/Hyderabad has still not caught up with TN.

No comments: