With better infrastructure and quality human talent, Chennai fares better than Bangalore in attracting new investments from business process outsourcing and software firms, National Association of Software and Service Companies president Kiran Karnik said on Thursday.

"Bangalore is overheated. The infrastructure there has not kept the pace of the growth in the information technology sector," Karnik said, after inaugurating the new facility of BPO firm 24/7 Customer in Chennai.

"The value proposition of Chennai is good," he said, adding Chennai was poised to become a major hub for BPO firms.

Karnik said Bangalore's infrastructure was facing severe constraints and Chennai could take advantage of this. "Chennai continues to have a narrower gap between infrastructure requirement and supply," he said.

Karnik, however, asked the state government to make sure that Chennai does not face constraints in the future as more and more companies set up their development centres and back offices in the city.

Vivek Harinarain, IT secretary, Tamil Nadu, said the government was able to increase the space requirements for IT firms by many fold in the last couple of years to attract companies. "We were able to change the perception about Chennai (that it was not an IT-friendly destination)."