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Why is Gurgaon Preferred by IT and MNCs?



Gurgaon is what Bangalore used to be for India 10 years back – a favorite haunt for IT companies to set up their operations. Why do IT Companies prefer Gurgaon although there are a number of lacunas in the city overall infrastructure. According to a research by Associated Chambers of Commerce and Industry of India (ASSOCHAM), many companies want to start their operations in NCR region, especially Gurgaon.

There was a time when Banglore was the first choice for IT Companies like Infosys, TCS, IBM, and so on. Financial institutions and Bio Chemical companies also preferred Banglore over other parts of India. There was a time when land was plenty in Banglore and thus available at reasonable rates. Apart from that Banglore had a large crowd of IT Professionals. However, the same is happening to Gurgaon now. The millennium city is getting replete with IT companies, MNCs, Financial Institutions, Banking Companies, BPO, and all other types of industries.

The first Multinational Company to start its operation in Gurgaon was GE Capital in the year 1997. After that a number of companies like merican Express, Airtell, Nokia, Microsoft, DLF, British Telecom, Hero Honda, and others followed the suite. Reliance Industries in collaboration with Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC) is planning to come up with an SEZ (Special Economic Zone), in Gurgaon that is expected to generate 1.5 million jobs.

The advent of a large number of IT and MNCs in Gurgaon has changed the face of the city; both for better and for worse. Better because the Gurgaon has suddenly emerged as an urban city of India that is iconic of modern India. Worse, because the development in Gurgaon has been so sudden and unplanned that the city’s infrastructure is not able to take the brunt.

Gurgaon’s infrastructure was never ready for development in such large scale. The outburst of population in the last decade has left the infrastructure topsy turvy. So why do companies still prefer Gurgaon over other parts of India?

Gurgaon is preferred over Banglore or Pune for setting up business operations by big companies mainly because of its proximity to Delhi, the capital of India. The city is also very close to National and International airport. Indira Gandhi International Airport is only 12Kms away from Gurgaon. Close proximity to the airport is a boon for the business travelers both domestic and foreigners.

Apart from that, Gurgaon boasts of modern infrastructure in terms of world class Office Buildings and Residential Complexes. Private builders like DLF and Unitech have constructed beautiful and professional commercial buildings to lure big MNCs and IT Companies.

Gurgaon is also regarded as an Industrial friendly city due to Industrial friendly policies of the Haryana Government. The liberal and transparent Industrial policies of Haryana Government have attracted huge domestic and foreign investment in the industrial sector.

Thus although Gurgaon is facing negative infrastructure problems like lack of good roads, absence of public transport, inadequate water and power supply, and poor law and order situation, the private builders and companies have come up with their own solution to these problems and still prefer Gurgaon over any other city in India.

Most of the IT and MNC companies prefer Gurgaon because of its conducive business environment.

Reecha kumar, Gurgaonsite

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