Most of the people here appreciating the move but the news artical has hidden the other factors which are not so good reasons for these companies to move to smaller town. Actually it is not the cost of land which these companies are worried about as most of them are running on rented places. Every year they shift to a new location citing bigger space as the reason but it is the fact the each year the owner wants to hike the rent hence the companies are moving to new locations. The reason for moving to smaller town and cities is not the real estate but cheap manpower. The writer of the article should have looked into the salary factor also. In a place like Bangalore or Hydrabad the salary should be not less then 15K if you want hire someone for the long term and it will be more then 75K if the post is higher. While in smaller town like Hubli the higher post itself will not cost more then 20K while the junior level jobs and entry level jobs will be well under 5K. While these companies continue to charges there clients in hugh dollars but wants to take the dual advantage of low labour cost and tax benefits for opening in smaller town as the SEZs in Bangalore and Hydarabad are almost completed there Tax free period. Will rediff gives the complete picture so that people will realize that there is nothing to excit about.
RE:Is this a really good news?
by Sachin R on Jul 13, 2007 05:09 PM Permalink
dont really agree with you.. companies are moving of cost factor..yes ..of course..thats what they are supposed to do...make more profit... a salary of 20k in a small town is equivalent to a salary of 40k in blore if u compare the cost of living... also, can help in development of these towns too and help reduce migration to big cities wch are already saturated.. so for whatever reason it might be...its good..
