Perspective impacts of information technology industry in development of Pune City in India

Abstract

The emergence of Information Technology (IT) is increasingly influencing the socio-economic and physical landscape of cities. It has also resulted in development of predominantly IT based industrial cities. These cities have the opportunities and challenges with respect to the development of their socioeconomic, infrastructural and environmental conditions because of the influence of the IT based industrial activities. This article therefore pertains to the analysis of the perspective impacts of IT industry and allied activities on the development of an emerging IT industrial activity based city. For this purpose, Pune, an emerging IT city in India was considered as a case study. Survey research methodology and a system dynamics modelling approach were employed to measure the influential socio-economic, infrastructural and environmental parameters of the city by considering the city as a system. This research shows that the location of IT industry and associated functions contribute significantly towards the socio-economic development of a city in terms of IT industry export, State Gross Domestic Product (SGDP), per capita SGDP, employment generation, to name some relevant aspects. However, there would be a reduction in satisfaction level of the infrastructure and an increase in environmental stress in the system, which needs strategic attention. Further, the model results and scenarios can facilitate evolving of feasible policy and strategic guidelines for the wholesome development of such cities.