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Bangalore IT.in
IT.in to focus beyond Bangalore
Every year, Indias premier IT show helps attract IT
investments. Besides showcasing Bangalore, this years IT.in intends to
bring Karnatakas tier II cities to the forefront, says Vinutha V.
The newly christened Bangalore IT.in (formerly known as Bangalore IT.com) is
entering its eighth edition and is being held from October 26 to 29, 2005. The
deadlines set by the Karnataka state government to improve the crumbling Bangalore
road infrastructure finally convinced IT companies to withdraw their threat
to boycott the event. A number of meetings between the representatives of industry
and the local government ensured their participation.
Last year, the IT industry had threatened to boycott Bangalore IT.in (IT.com)
but withdrew their protest after the government promised to take some action
to improve the citys infrastructure. Those promises were never kept, according
to the industry. The state government has given deadlines for crucial projects
including the operation of the Bangalore International Airport and Metro Rail,
and has promised to meet them. Work has begun on the Bangalore International
Airport and passenger flights will be operational from January 2008. The work
on the Rs 6,207 crore (33 kms stretch) Metro Rail Project has commenced with
the states share being Rs 1,807 crore, and government of Indias
at Rs 1,447 crore. balance Rs 2,953 crore will come from banks. The first train
is scheduled to roll out in October 2008. There will be four new flyovers that
will be constructed by the Bangalore Development Authority at a cost of Rs 105
crore. A new elevated four-lane road will be constructed between the Silk Board
junction and Electronics City on Hosur Road at a cost of Rs 400 crore.
The companies participating in the event this year include HP, Motorola, Freescale
Semiconductor, TCS, Mysys, Mitsubishi, WeP Peripherals, IBM, APC, Hutch, Reliance,
the London Stock Exchange, NASDAQ, Coral Telecom and Alcatel Business Solutions
among others.
Bangalore still attracts
Even though the IT industry is highlighting the citys infrastructure problems,
Bangalore has been the preferred destination for IT ventures from across the
world. The growth the industry has seen in the previous year is a testimony
to this. Karnataka has contributed Rs 27,600 crore during 2004-05, a 52 percent
jump in software exports from the state.
The annual Bangalore IT.in event has helped to draw the attention and
investments of global IT players towards Karnataka. Last years event was
an unqualified success. The event has helped to attract about 238 IT companies
between November 2004 and September 2005 as against last years 168. On
an average, Bangalore is attracting four companies in a week, says M K
Shankaralinge Gowda, Karnatakas IT secretary. Now, its not
just the IT companies that are acting as the enablers of IT investments. Good
quality structures that meet global standards indicates that builders have understood
the IT requirements such as employees requirements in the office, car
parking facilities and so on, he adds. After New Delhi and Mumbai, Bangalore
has the largest domestic air connectivity, it has the talent and the law and
order situation is stable in the city and the state.
| Bangalore: the hub of global outsourcing |
- Bangalore, the gateway of Indian IT has
generated an investment of Rs 2,288 crore in the IT sector.
- 185 BPO companies operate from Bangalore.
- Over 2,00,000 software professionals are
employed in IT sector as on March 31, 2005.
- 85,000 people work in the BPO segment.
- Investment by BPO companies is about $300
million.
- BPO exports in 2004-05 totalled Rs 3,500
crore.
- The count is 579 MNCs, 112 MICs, 829 SMBs.
- Out of 87 SEI CMM Level-5 IT companies
in the world, there are 63 in India, out of which 32 are in Bangalore.
- Number of IT companies that invested in
Bangalore at the advent of the first edition of the event was 400. In
just 7 years, the number quadrupled to 1,600 companies this year (as
on date).
- Exports from the state have grown from
Rs 680 crore in 1998 to Rs 27,600 crore as of March 31, 2005.
- Employment has increased from 15,000 in
1998 to 3,00,000 in 2005.
- $500 million worth of business was transacted
in 2004.
- During April-August 2005, there has been
a growth of 23 percent in Karnatakas IT sector over the corresponding
period last year.
Source: Karnatakas IT department
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Beyond Bangalore
No doubt, new global IT ventures look to Bangalore as their destination, the
existing IT companies in the city are aiming to spread their wings to tier II
cities of KarnatakaMysore, Mangalore, Hubli, Dharwad and Shimoga. Tier
II cities hold potential for the IT sector. The existing infrastructure of earth
stations and incubation centres in these cities are the basic necessities for
the growth of IT and availability of skilled manpower is an added advantage,
says Gowda. As of now, Mysore has the highest number of IT professionals amongst
tier II cities. This is because of Mysores proximity to Bangalore. Real
estate prices are lower and data communication resources are in place. Moreover,
travelling is glitch-free and without traffic congestion.
The cosmopolitan culture that is existing in Bangalore is gradually sinking
into Mysore too, according to a spokesperson of STPI, Mysore. The work on the
four-lane expressway between Bangalore and Mysore is underway. The rail track
between Bangalore and Mysore has also been increased to twice its current size.
The existing airport at Mysore is being upgraded to accommodate larger aircraft
with an expenditure of Rs 50 crore. Mysores IT companies employ about
3,500 software professionals in 33 companies, of whom, 2,500 people are employed
in Infosys alone.
ONGCs economic zone is expected to help in attracting IT communities to
Mangalore. Of the 19 IT companies in Mangalore, Infosys and MsourcE are
the major IT players as of now. We expect more IT firms to come once the night
flying facility improves at Mangalore airport. The city needs a greater number
of international class hotels, says Ganesh Nayak, Officer In-Charge, STPI,
Mangalore. The IT workforce of Mangalore consists of around 2,500 people. Of
this 1,500 are employed in Infosys followed by 400 in MsourcE.
The north Karnataka region of Hubli and Belgaum is home to the BPO segment,
which is mushrooming in this region with medical transcription, data conversion
and call centres. For this region to improve, basic infrastructure in
the form of good road and air connectivity is critical. We have an IT park with
2.7 lakh sq. ft area. Our incubation centre has nurtured eight companies, of
which six are already full-fledged BPO outfits. Proper marketing of existing
facilities and improvement of soft-skills of the existing manpower will encourage
IT companies to operate from here, says Jaya Prakash, Officer-In-Charge,
STPI, Hubli. Currently, the seven BPO companies in Hubli and Belgaum have 500
employees.
There has been a consistent focus on part of the state government and IT players
to move IT beyond Bangalore. Preliminary surveys have been conducted in these
tier II cities. In view of this, IT.in will hold a separate seminar, Beyond
Bangalore, wherein a platform will be created for foreign visitors and
domestic companies to understand the potential of tier II cities.
20,000 sq.mts have been allocated to the IT.in event, an increase of 25 percent
compared to last year. This year, only certain places such as cafeteria and
VIP zones will be WiFi-enabled. Says, M Hussain of Events Ten, Unlike
last year, the entire event area will not be WiFi-enabled. From the previous
years experience, we have noticed that not all the participants would
have equipment that support WiFi. Sify is providing WiFi services to the event.
Bharti is providing a broadband connectivity of 6 Mbps and the same speed for
backup.
New flavours of IT.in 2005
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From the 13 countries of the previous
year, the number of countries and regions participating has gone up to
20 this year
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To attract both B2B and B2C visitors, the event is holding
Bid and Win selling zone, wherein hardware companies will showcase
their products including notebooks, desktops, printers and other computer accessories.
Buyers can bid and win products in three slots of an hour each. Connoisseur
and WeP Peripherals have already confirmed their participation and a few companies
from China and Taiwan are also expected to showcase their products. In addition,
the buyer-seller meet offers direct contact between buyers and sellers. The
Global Zone and the Gaming Zone are also included as the special focus areas
of the event.
This year too, the event will have eight pavilionsGlobal IT, STPI, IT
states, infrastructure, software, ICMT, communication (earlier telecom) and
IT mall (earlier Spectrum). This years IT.in event is focussing on HR
issues in IT, bridging Barcelona and India, Invest in Bavaria and TiECon Bangalore
2005 in three days of conferences. The rest includes regular features such as
networking dinner, CEO conclave, awards nite, rural IT quiz and Students Internet
World with three lakh students who will also be a part of the event.
From the 13 countries in the previous year, the number of countries and regions
participating has gone up to 20 this yearthe US, Britain, Australia, New
Zealand, Spain, Mexico, Bavaria, Belgium, China, Japan, Russia, Pakistan, Bangladesh,
Taiwan, Germany and France. Some of the countries are bringing large delegations
with them. For instance, Spain is coming with 40 delegates, and there are about
20 companies from both China and Taiwan. Australia too will be there with 20
companies. Mrs Sonia Gandhi will inaugurate the event and Chief Minister of
Karnataka, Dharam Singh and Union Communications and IT minister, Dayanidhi
Maran will be the chief guests at the inauguration. Over 250 companies are expected
to participate and three lakh visitors are expected during the entire event.
vinutha@expresscomputeronline.com
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