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Ever since the brain drain began in India, the Parthasarathys and Subramaniams of Chennai, featured in the wanted lists of Microsoft, IBM, Intel, Apple.... to name a few. Greener pastures they saw, and millions of dollars they earned. The companies on their part gave them the best of working environment etc., etc.. But the Indian brains craved for something other than the dollars, environment and brains. 

IT companies would benefit an overall cost of 30% -40% if their operations are located in Chennai, Vis-a-Vis other international cities.  
The Weightage of various factors considered while locating an IT Company in Chennai

Chennai emerges on top in a study conducted by Nasscom

The Nasscom's recent study of various cities in  India has revealed the following. 

Availability of software manpower 3.50
Data Communication availability 3.00
Education Facilities 3.20
International and Domestic Airport 3.40
Transportation within the city 3.20
Cost of living 2.80
Cost of setting up a software unit 2.95
Quality of life 3.00
Climate 2.50
Market Proximity 3.30
Overall
(The highest score among the states reviewed)
3.20

Chennai has scored a highest rating of 3.20 on 0-4 scale and emerged as preferred I.T. location

escindia.org
Electronics and Computer Software Export Promotion Council (ESC) is a non-profit, autonomous organisation of the Ministry of Information Technology, Government of India. ESC is mandated to promote India's export of :

i Electronics Hardware & Telecom
ii Information Technology, Computer Software and Services

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