IT: Chennai, H''bad may outstrip Mumbai, B''lore by 2010: Gartner

Mumbai: Hyderabad and Chennai may soon replace Bangalore and Mumbai as favoured Indian destinations for IT outsourcing by 2010, says Gartner Inc (NYSE: IT and ITB).

Its recent report, IT Outsourcing to India - Analysis of Cities, Gartner categorised and evaluated Indian cities into four tiers, based on various factors including infrastructure, skills availability, skills retention, access, cost of living, political support and quality of life.

Factors that inhibit a city's IT quotient and need to be addressed are increased attrition, inadequate infrastructure, escalating costs and lack of good quality real estate. Cities like Pune, which ranked lowest in infrastructure support, will need significant investment to come on par with Mumbai and Bangalore or even Chennai and Hyderabad, in the future.

Key highlights of the study indicate:

• Smaller cities are more alluring for IT
  
• Mumbai ranks lowest in cost of living and quality of life
  
• Chennai and Hyderabad will replace Bangalore and Mumbai to be the most favoured destinations for offshoring by 2010
  
• Pune tops the list with the highest ratings in skills availability and retention, and will be a close contender for a Tier-1 slot by 2010
  
• Attractiveness of the location for expatriates will be an emerging 'swing' factor by 2006.