This report aims at identifying the various state administrative/commercial capital cities in the North East Region where IT-enabled service industry could be set up, and whether the necessary conditions conducive to the industry exist. It is also an attempt to rank the various cities in terms of their investment friendliness when it comes to the ITES industry. This report involves a macro environmental analysis where the focus is mainly on the STEEP sector of the business environment-social, technological, economic, environmental and political aspects that impact competitiveness.