Q: What is the future of the Coimbatore IT sector looking like? Im going to be investing soon in this city, I need to know about the potential this city holds.
As the manpower cost is quite lower in Coimbatore, and the availability of IT skilled people in this region seems only to be growing, there should be no reason why careers in Coimbatore have problems. And new careers in AI appears to be currently growing these days. Especially when many IT companies are open to work from home or for offices in Tier II cities. There has also been growing demand to this firm, for residential architecture and commercial architecture projects, from Coimbatore.
Given the growing list of Manufacturing, Business Process Outsourcing (BPO), Aerospace and Defence, Railways, Paper, Poultry and food, Retail, E-commerce, Hospitality and other companies in Coimbatore, the opportunities for IT companies is only growing.
Thats not going to deter the growth here, From what I know, I think the soft skill level of employees in Coimbatore and the surrounding regions have improved at breakneck pace. Coimbatore will only grow faster
I know everything looks great for Coimbatore IT sector, but there are some issues as well, especially the low connectivity, support infrastructure and a lack of soft skills can be obstacles.
Another advantage here - the cost of hiring people is also much lower. The manpower cost is as much as 10-15 per cent lower when compared to the Tier I average.
Plus office rents are so much lower here than in most other cities - in fact among the lowest in the country, with Grade A space costing only Rs 34 per sq ft.
And where do you think this cost effectiveness has come from?! Of course the real estate market. The city has witnessed 12.5 times growth in available Grade A office space in the last five years only.
I think a major thing that the city has going for itself is its cost-effectiveness. In fact according to NASSCOM, Coimbatore is the second most (almost 20-22% more than Tier 1 cities) cost effective city on the list.
I know that there has been a steady climb in the numbers of employees in the IT-BPM industry in the city every year. The number has in fact jumped 30-fold to 15,000 in 2013!
Over 40,000 qualified professionals entering the job market in 2013 alone. Naturally Coimbatore is ranked first in terms of growth in employee headcount in the last five years.
Yeah I read that report too. If Im correct, Coimbatore ranked first in the list of challenger cities, which included Kolkata, Jaipur and Ahmedabad, in terms of available talent.
I also read this one NASSCOM and Cushman and Wakefield report released few days ago that the city is placed high on the list of challengers to established IT hubs like Mumbai, Delhi-NCR, Bangalore and Chennai.
Yeah and the talent pool here is also large. I recently read in an industry report, Coimbatore is set to become a top emerging player on a national level.