ASSOCHAM as part of the survey looked into the current developments in the southern part of the country and concluded that India's upper hand as the Information Technology/Information Technology Enabled Services (IT/ITeS) hub is slowly loosing glory.
D S Rawat from the Associated Chambers of Commerce and Industry of India said, "The driving forces are multitude, ranging from ease of doing business, availability of abundant English speaking workforce at lower wages, better infrastructure to government incentives."
He added, "It is imperative for Governments at the Centre and States to quickly initiate remedial measures on war-footing to stem the loss as the capital flight will not only severely affect the growth and employment but threaten India's leadership in the knowledge industry."
A sper the recently concluded ASSOCHAM Eco Pulse (AEP) Study titled "Sustaining India's IT/ITeS Leadership" the existing macroeconomic and sectoral conditions are causinfg a dent in the indistry and resulting in the shifting of ITeS/BPO industry away from India to the Philippines, especially from Hyderabad and Bangalore. The trend is not yet occuring in the National Capital Region and Pune.