C Velan, CEO – Info, Tata Reality Infrastructure Limited
Tier –II cities are an attractive destination for IT/ITES industry and Uttar Pradesh can tap the potential of its cities especially Lucknow as the proximity to Delhi, NOIDA and NCR is there”
With growth in IT/ITES industry to newer towns and cities, Uttar Pradesh aims to tap the sector by supporting infrastructure of IT Parks and SEZ in the state.
India is popular for being an IT/ITES destination and according to estimates, is poised to increase its worth to $ 220 billion by 2020. The industry has been a major contributor in buying up commercial office space in the real estate sector. According to Cushman & Wakefield, India is likely to witness the second highest demand for office space in 2014 among the top 30 cities in the Asia-Pacific region, and IT-ITES sector will drive most of this office space growth in India. Today, IT/ITES industry contributes to nearly 70 percent of the total office space occupancy in the country.
The trends indicate that there is a growing demand for commercial space from IT/ ITES industry in newer cities and towns, mainly due to cost the advantage in terms of land and operations, including availability of human resources. With most IT Parks and SEZ located in the southern and western parts of the country, northern states have also begun to attract companies from IT/ITES sector to benefit from the direct economic and employability benefits that comes with it. In terms of office space supply, National Capital Region (NCR) saw new supply of 9.1 million sq ft during 2013, which is 37 percent higher than the previous year.
The sectors that contributed to the rise primarily constituted in commercial office projects with 63 percent followed by 25 percent in IT Parks and 12 percent in IT SEZs. “Tier –II cities are an attractive destination for IT/ITES industry and Uttar Pradesh can tap the potential of its cities, especially Lucknow, as the proximity to Delhi, NOIDA and NCR is there. With educated and skilled manpower readily available, Lucknow can be a viable destination for IT companies,” says C Velan, CEO – Info, Tata Reality Infrastructure Limited. The availability of reliable power and security is equally important for success of IT Parks. Due to the landmark initiatives taken by the Government of Uttar Pradesh, the state is now being widely regarded as an attractive destination for IT and ITES industry.