BPO COMPANIES LOOK FOR IT PARK
A few years back, a number of multinational Information Technology (IT) and Business Process Outsourcing (BPO) companies, after taking into account India as a base for their operations, finally decided on cities such as Bangalore, Hyderabad and Pune due to the lack of quality space in the Metros. This trend is fast changing with the entry of national developers and local developers, who are gearing up to meet the potential demand for space from IT companies which is expected to be nearly 2.5 million sq.ft./year.
The metros still need to offer quality ready-built space and developed land, targeting technology and outsourcing companies of different sizes. Over the last two years more than 95 percent of the space absorbed has been by the IT and BPO sectors in major Cities. This is an extremely healthy situation given the fact that the quality of buildings in the metro like Kolkata is still not up to international standards. A number of local, national and international developers are expected to aggressively pitch for this land. Developers of IT real estate space need to realize future trends from an occupier perspective, which includes a more strategic approach to real estate, ongoing search for more flexible solutions, greater focus on security and environmental issues, and global or regional input for decision making. 
Most international occupiers would favor to lease space as this would involve minimum capital commitment, maximum flexibility, easier exit strategy, and real estate being kept off the balance sheet. A leading foreign developer who has successfully completed projects in Bangalore and Hyderabad has commenced work on an IT Park other states also. Different state governments on their part have also contributed to the improvement of quality office real estate supply. They need to look at reclassifying and allotting land at competitive rates to local, national and international developers to create mixed use facilities. The demands on prices, escalating costs and dwindling profits is forcing IT companies in metros to set up operations in tier-two cities. As competition increases, it will become tricky for developers offering only built-to-suit space solutions to attract IT and BPO companies to their projects.