Probably you already know that Chennai (formerly Madras) belongs to the league of the most visited Indian cities by foreign tourists. But did you know that the city is called the “Detroit of South Asia” due to the presence of several leading automobile companies? And now Chennai has become one of the major SaaS (Software as a Service) hubs in the country with a wide range of world-renowned companies including Accenture, Cognizant Technology Solutions, HCL Technologies, etc having offices here. In this post, we’re going to take a close look at the key factors that are driving the outstanding corporate work culture of Chennai.
Presence of SEZs
An SEZ or Special Economic Zone is one of the most important factors that help and motivate corporates to choose a particular city/state to open up branches. Thanks to the SEZ Act, companies, which choose to operate from an SEZ, can enjoy many economic advantages such as significant tax incentives along with a simplified process to set up the business and other considerable benefits. With the state boasting of the maximum number of operational SEZs in the country, Chennai has its fair share as well. Add to this the city’s moderate standard of living and Chennai emerges as one of the hottest Indian destinations for corporates.
Exceptional literacy rate
It’s needless to say that when a city has a high literacy rate, it becomes relatively much easier for companies, which are operating from there, to get access to a highly skilled and educated talent pool. According to the Census data released in 2015, Chennai ranked number one among India’s top ten most populous cities. The city is also the second-highest educational hub in the country with a broad range of leading institutes that churn out a significant number of sharp minds each year.
Chennai is well-connected with other major Indian cities through airways, road, and rail, and has an excellent power supply infrastructure. Additionally, the Chennai City Partnership project, which is funded by the World Bank, is expected to start in 2021. With an estimated total budget of 1.43billion USD, this project will focus on the development of infrastructure, systems, and institutions.
The above characteristics of Chennai have not only attracted corporates but startups as well. One of the major reasons behind this is the availability of many angel investors willing to fund startups, transforming the city’s startup ecosystem. There’s another major factor that encourages both large corporations and startups to set up a base in Chennai is the availability of a wide range of world-class shared office spaces. By operating from one of the best coworking spaces in Chennai, companies are able to focus on nothing but their business only.
As you can see, Chennai offers everything that companies, whether it’s a large organization or a startup, need to conduct business in a hassle-free manner. And perhaps this is one of the key reasons why the city has made it to the list of the world’s top ten fastest-growing cities.