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Home > City Resources > Computers and Internet > IT Hotspot -- Coimbatore
Coimbatore's IT potential

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Dr Sankaran P Raghunathan
N. Parameshwaran
A Akthar Hussain

According to a recent study by PricewaterhouseCoopers (PwC) and CII, Coimbatore can build up as much as $113 million in IT and ITES revenues by 2008. Estimating the lowest cost of manpower in the major IT and ITES centres of India, it was conferred that Coimbatore is estimated at 20 per cent of the total billing value if the assumed billing rate per hour was taken at $10. While the manpower cost would be estimated at 26 per cent of the total billing value among other major IT and ITES centres in India.

Factors like real estate prices and a huge talent resource base work to the advantage of Coimbatore's IT Potential. The capital value of real estate in Coimbatore is among the lowest among southern cities of India. Space for rental is available at an average cost of Rs.35 per sq ft against Rs.40 to Rs.50 per sq ft in Chennai and Bangalore. The demand for quality IT park space is also set to go up from an immediate requirement of 0.6 million sq ft to 1.4 million sq ft for 14,000 professionals by 2008.

The vast talent pool of Coimbatore which marks up to approximately 20,000 engineering graduates and 28,000 non-engineering graduates gives scope for potential employment between 8,100 to 18,340.
The study was conducted over a base sample of 200 organisations. The sample survey indicated that a major portion of these organisations were interested in setting up their shops in Coimbatore.


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