India is facing a shortage of high quality workers as outsourcing opportunities from the West keep coming into the country finding that top-quality workers are now fully employed. As a result, BPO companies are now looking at smaller Indian cities to host their operations, but have found that the workforce there is not as good.

Tier-II cities like Chandigarh, Coimbatore, Vishakhapatnam are the next favored destination of IT firms. Other locations such as Kochi and Jaipur are also being considered as potential IT destinations.

Currently, IT majors such as IBM, Dell, Cognizant, Mphasis and Satyam are looking at plans for Coimbatore, Mangalore, Chandigarh and Vizag. In addition, Wipro and TCS have bought land at Vizag. And Satyam has started work on a 50-acre campus in the same location while also establishing a technology center at Thotlakonda.

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