To move to the next level, the four cities - Chennai, Coimbatore, Madurai and Trichy - will have to create the required pull to attract talent, strengthen infrastructure, improve the quality of life, and increase inclusivity to accommodate the demographic diversity that growth will accompany.

The Indian IT-BPO sector has been a frontrunner of economic development in select cities, providing employment to a large number of people and improving the overall quality of life and amenities like education and healthcare in these cities.

The growth projections of the industry indicate that though 7 cities - including Chennai, Pune, Bangalore, Hyderabad, National Capital Region, Mumbai and Kolkata - would see significant growth, they would need proactive planning and meticulous execution to support this growth.

Today 70 to 80% of revenues come from these major cities. To reduce pressure and balance the growth, there is a need to develop Tier II cities which give various advantages, most importantly the cost advantage.

Compared with Chennai, the cost advantage in Coimbatore is 34%, Madurai 21%, Trichy 35% and Salem 36%.

But the challenge in these cities is lack of quality commercial space, infrastructure development, quality hotels, public transport in peripheral areas, availability of recreational and educational facilities and rise in labour and real estate costs.