Ujjain IT park in India draws 11 firms for BPO, AI
UJJAIN, INDIA — Eleven companies have expressed interest in occupying space at Ujjain’s under-construction IT park, collectively seeking approximately 1.26 lakh square feet of space for business process outsourcing, artificial intelligence (AI), and technology operations, as the Madhya Pradesh Industrial Development Corporation accelerates development of the tier-2 city’s first dedicated technology facility.
The Ujjain IT park is being developed by the Madhya Pradesh Industrial Development Corporation (MPIDC) on 2.16 hectares within the Government Ujjain Engineering College campus in Goylakhurd village, with Phase I construction costing approximately US$8 million (INR 67 crore) and targeted for completion by end-2026.
Tier-2 city offers alternative to saturated tech hubs
According to background reporting from Free Press Journal and PropNewsTime, the Ujjain IT park is designed as a plug-and-play facility offering ready-to-use office infrastructure, a startup incubation center, and shared research laboratories. Phase I is expected to generate approximately 500 direct jobs and more than 1,000 indirect employment opportunities on completion.
The companies expressing interest in the facility span business process outsourcing (BPO) operations, software development units, call centers, and artificial intelligence (AI) applications, reflecting the range of technology functions that tier-2 Indian cities are now competing to attract.
MPIDC said the park’s infrastructure is designed to allow enterprises to establish operations without setup delays, positioning Ujjain as a viable alternative to more expensive tier-1 markets.
MPIDC Phase II approved as demand outpaces initial capacity
MPIDC has already sanctioned Phase II of the Ujjain IT park and appointed a developer, responding to demand that has outpaced the initial Phase I footprint.
The cumulative interest from 11 firms, seeking 1.26 lakh square feet, points to demand that exceeds what Phase I alone can absorb, making the Phase II approval a direct response to confirmed market signal rather than speculative planning.
Firms from Indore, Ujjain, and Bhopal have been cited among those evaluating the facility, suggesting the park is attracting regional technology operators rather than limiting interest to local players.
Ujjain’s IT park development reflects a pattern emerging across India’s tier-2 cities, where infrastructure investment by state industrial development bodies is redirecting BPO and technology operator interest away from congested tier-1 markets.
India’s global capability center sector recorded a peak of 510,000 new jobs in its most recent reporting period, and state governments are positioning second-tier cities to capture a share of that demand as labor costs and commercial real estate prices in Bengaluru, Hyderabad, and Pune continue rising.
For buyers evaluating outsourcing delivery locations, Madhya Pradesh’s coordinated investment across Ujjain, Indore, and other centers points to a state-level strategy that goes beyond individual facility announcements.
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Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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