Infrastructure and employees cost is increasing in big cities, which is threatening the Indian IT industries. The Indian government has announced its plan to develop 43 new IT cities in the country that will help to tap rapid rise in demand for IT related services in next 10 – 12 years. This will help to maintain its cost effective appeal, reported The Economic Times

This move comes when BPO and Information Technology companies started losing their online business and global benefit with the emergence of small countries like Vietnam and Philippines. Those countries are offering same services at cheaper rates and are endangering India’s outsourcing status at the international market.

The plan seeks to find a way out of the situation where companies find it difficult to recruit quality employees as the allure of BPO jobs dulls and attrition rates go up. Infrastructure constraints in Bangalore, Gurgaon and elsewhere are other spanners in the work.

It is predicted that these new IT cities will provide steady supply of IT workers. The proposal, suggested by a high-level group on service sector, has been cleared by the Planning Commission. Sources said "The modalities for the ambitious plan will be finalized very soon.”