A City Of Tech Nawabs

Advantage

Hyderabad






Charminar
and Golconda fort may not be the only famous monuments at Hyderabad

anymore. Competing with them is the new technological monument, the

Hi-Tec City. While the former brought art and culture to the city, the

latter is heralding a new era-an era of technology.

For Hyderabad, the transforma-tion has definitely helped gain identification
as a global IT destination. "Hyderabad has changed rapidly in the

past two years and today is an identified location. It helps in many

facets; big companies have made their presence felt and this is a tremendous

advantage", says Venkat Rao, VP, VisualSoft, one of the top 10

exporters from Hyderabad.






Manpower, IT-skilled manpower to be precise, is the greatest asset of
Hyderabad. The good computer prowess of the local populace was the initial

fillip for companies like Intergraph, Baan, DE Shaw, etc. to set up

shops here, not to mention the success stories of the likes of Satyam

Computer Services.






This strength has graduated to higher standards. An IT savvy government
set the ball rolling in the city's favor. Identity established, all

action is now directed at sustaining the momentum. Infrastructure is

being geared up to meet the upcoming challenges. Such is the pace that

Hyderabad jumped to the third slot from the 12th in the 1998 business

rankings of cities.






If another Silicon Valley in making is what Hyderabad is being looked
at as, think again. The massive investment by the state government in

the administrative machinery will also trigger a ripple effect in the

purchasing power of the city. It is a combination of all these factors

that has aroused curiosity of this 400-year-old city.






"The government's IT initiatives certainly help in generating opportunities
for domestic industry to avoid excessive dependence on export market.

Also, these will help maintain and trigger a good balance between exports

and domestic software activity. In fact, it is a great opportunity for

Indian software companies to explore India markets before going into

exports", states JA Choudhry, Chairman, Executive Board, STPI,

Hyderabad and Chennai.






Hyderabad opened the flood gates to many more companies when Bangalore
was being talked of as having attained saturation. "It is not a

talk of Hyderabad versus Bangalore or for that matter any other city.

Companies are exploring other cities, including Mysore in Karnataka

itself, and have found an ideal investment destination in Hyderabad",

explains Choudhry.






Software development activity is at its peak in the city today. Consider
the figures: STPH clocked a 100% increase in software exports in the

year 1997-98 registering a turnover of Rs274 crore (as against Chennai's

28%).



Besides, the STP also saw an increase in the number of registered units
go up from 88 to 112 in 1997-98. Of these, 70 are exporting units. New

markets were explored in Japan, Australia






and Middle East. Major contributors again included big names like Satyam
Computers, Wipro Ltd, Metamor Solutions, BaaN Info Systems, Intergraph

etc.



However, a major drawback for the city is the quality of work generated
from here. A comparison of units to turnover of the STPs of the three

southern cities Bangalore, Hyderabad and Chennai reveals that while

Bangalore is way ahead with an export turnover of Rs3,500 crore, Hyderabad

and Chennai are treading along below the Rs1,000 crore figure. Major

portion of the business generated is accounted for by the big few. Despite

the increase in number of units registered with the STP of Hyderabad,

the turnover is not increasing proportionately.






Says Venkat Rao, VP, VisualSoft, "There is a need to move on to
the value-addition segment". Echoing the same sentiment, BVR Mohan

Reddy, CEO, Infotech Enterprises, states, "Industry growth in Hyderabad

could have been better than what it is today". The scenario is

likely to change with the numerous MNCs setting up their development

centers here. Microsoft, Motorola, Intelligroup and other occupants

in Hi-Tec City are expected to shoot-up the software exports from Hyderabad.

The entry of big companies like Motorola, Microsoft etc. is expected

to help the Hyderabad IT industry move towards R&D rather than maintenance

services.






Hi-Tec City-Take-off factor


The Hi-Tec City project built up all the push that Hyderabad required
to be launched into the global IT arena. Cumulatively, it will along

with bring the big players, big projects and excellent infrastructure,

huge forex resources and employment to the tune of 50,000 in addition

to indirect employment generation of nearly 2,00,000 jobs. "It

will enhance a lot of economic activity in the city and the state",

says Choudhry.






Companies which have booked space at Hi-Tec City include Microsoft,
Oracle, Metamor, Invensys, Applisoft, Leo, Sriven, Cybermate, Seven

Hills, Toshiba Corp and a host of others who have confirmed their bookings.

Service providers include eight banks, STPI, VSNL, DoT, Tata TeleServices,

Thomas Cook, VV Business Systems, etc. A number of companies are building

their own complexes within the 'Infocity'. These include BaaN, Wipro,

TCS, Infotech Enterprises etc.






Though the comparative costs of occupancy at Hi-Tec City is much more
reasonable than such options in other cities, there is still a feeling

within the domestic industry that infrastructure facilities are being

concentrated towards a few big players. Says Mohan Reddy of Infotech,

"Hi-Tec city is still an exponential proposition, the numbers have

to come down. I am a strong proponent of this".






Cost competitiveness


Cost competitiveness is where Hyderabad scores over other IT destinations
in these crucial times when even the large companies are looking at

cutting expenses as a means for survival. And the government is optimizing

all its propositions over this parameter. Ready-made infrastructure

at reasonable rates was the most attractive offer of the Hi-Tec City

and it clicked wonderfully well.






Training industry-Driving ahead


Trained talent lured companies to set up their development centers in
Hyderabad. Harping on this trend, the state government came up with

a very well devised proposal-an IT school funded by the industry. The

Indian Institute of Information Technology (IIIT), brainchild of the

AP government, went well with the MNCs, who were only too willing to

invest in the training school. Then came the Competency Center for Java

in India (CCJI), sponsored by NASSCOM, DoE, CMC and Sun Microsystems,

and AP's success in bringing the India Business School to Hyderabad.

BaaN also set up BaaN Institute, one of its three institutes all over

the world, giving the niche to the city as an ERP training ground.






"It is very essential to create educational infrastructure for
growth of IT industry. The IIIT is a major move which sets Hyderabad

distinct from other IT destinations", explains Reddy. "With

the surging growth, we further need to upgrade the quality levels in

formal educational structure in universities. The IIIT is one of the

government's initiatives in this direction", says Choudhry.






Business 'wise' government


A CM who prefers calling himself 'CEO of the state' is the best plank
any state could have ever asked for. And this 'CEO' does no less marketing

than his counterparts in the corporate world. He has toured major companies

in the US, chalked-out plans and strategies for future and marketed

his state to the hilt. Companies are being invited to tour the state

and see for themselves the opportunities the land has to offer. In the

process, creating a visibility for AP in the worldwide market.






A look at the list of companies who have recently invested in the state
is an evidence of its success story. Not just private organizations,

the city has also gained acceptance within the country. RBI has set

up the Institute for Research and Development in Banking Technology

(IDRBT), a fully autonomous organization developing networking infrastructure

for banks and financial institutions in the state.






"Chandrababu Naidu's Vision 2020 reiterates the fact that quality
comes with a vision. Dynamics of software industry are affected by various

other things and Hyderabad is getting these dynamics straight",

opines Venkat Rao. Interestingly, AP is studying the examples of countries

like Malaysia and Indonesia which successfully implemented IT in government

structure. This is helpful in identifying core areas which require more

doses of technology and minimize wasteful expenditure.






Pushing the right gears


The multi-faceted nature of Hyderabad and the people's willingness to
absorb any new culture into the existing mould is one of the charming

characteristic of the city. The city is a wonderful mix of old, new

and modern and is all set to take the ultra-modern cosmopolitan look

in a very short span of time. This could be the 'golden' era in the

annals of Hyderabad.






Hyderabad has it all, major research institutions, corporate success
stories, high technical talent, fast growing infrastructure and the

proper attitude. The need of the hour is a few more success stories

in IT. "We need to grow more and more crops of technology-oriented

companies and only then can we reap the harvests of the likes of our

own Netscape, Microsoft or Cisco", says PS Jayaraghavendra, MD,

Pramati Technologies.

 

Selling

Points






Recruitment to development


Hyderabad is known as a recruitment hub. Software industry in the city
initially started with body-shopping activity which till date forms

a sizeable chunk of business directly or indirectly for most of the

companies. The number of companies into product development could be

counted on finger tips. The situation has not changed very significantly.

Definitely, there is a notable improvement in the activity on the product

development front too.






Says Choudhry of STPI, "There is a shift from body shopping and
service and maintenance services to product business. Today, we see

companies like Satyam Computers, VisualSoft, Infotech Enterprises and

Pramati Technologies doing excellent product development work".






Training hub of India


Triple IT (IIIT), Baan Institute and the numerous universities imparting
IT education make Hyderabad a sought after place. IIIT has technological

commitments from IBM, Oracle, Microsoft, Metamor, Satyam and a few others.

This would cover the whole gamut of IT education. The Baan Institute

is considered to be the best in ERP training. The India Business School

expected to come up shortly will introduce quality management thoughts.

NIIT, Aptech and a constellation of private training institutes also

have a strong presence in the city.






R&D-centric activity


R&D was always an important activity at Hyderabad. Much before it
picked up on the IT front, the city was known for its government funded

R&D centers, next only to Delhi and Pune. Added to this, was the

industrial base built by PSU's like the BHEL, ECIL, HAL, HMT and many

others.






R&D work gained momentum when CMC established one of its two 'intelligent
townships' here and others like Intergraph, Baan, DE Shaw, etc. followed

suit. However, it was the stepping-in of the IT-savvy Chief Minister

Chandrababu Naidu that can be called the turning point. Other than the

R&D activity, the MNCs also brought with them more professionalism

to this laidback historical city.






With more and more companies setting up development centers, the small
players are finding it difficult to survive. Also, there is a feeling

that the government is neglecting small firms. A proposal was recently

put up to the CM to set up an STP building in the Hi-Tec City campus

for the small units.






E-governance to generate more business for small companies


Government investment in e-governance systems is opening up manifold
opportunities for small companies. The government, on its part, is inviting

participation of these units. For example, the software for Mandal computerization

was done by Hyderabad-based Ram Informatics. Also, all companies are

keen to participate in the venture.

State-Of-The-Art

As Art Of The State






Future
governments will have to be leaner, flatter and more transparent. And

IT has the potential to bring about this transformation, says Randeep

Sudan, Special Secretary to Chief Minister, Government of Andhra Pradesh.

Heraclitus, the

Greek philoso-pher once said, "The only con-stant thing permanent

is change." While previously change used to mark an interregnum

between two periods of relative stability, it has now become part of

a continuum. Governments will increasingly have to contend with this

new `scenario'. Rising public expectations are making it necessary to

cut down on response time and improve the quality of service delivery

by government agencies and departments. In future, governments will

be required to metamorphose into structures that are flatter, leaner

and more technology driven.






Effective use of IT in government services poses its own challenges.
Some inherent weakness in IT projects are planning, mediocre performance

knowledge and future gaps, as also procurement systems, which, in Government,

are very often tedious and slow. Some issues vital for successful deployment

of IT for better services delivery to citizens should be carefully addressed.

IT ARCHITECTURE: To begin with, it is necessary to define the

overall IT architecture to be adopted for government applications.





CENTRAL DATA REPOSITORY (CDR): A cost-effective implementation
of IT projects entails setting up a CDR which would provide information

on the ownership of various elements of data, data structures and types

of data available for use by government agencies. Some successful examples

of CDRs include the GICS, a government information locator service in

the US and the AUSGICS in Australia.






In our country, there is a need for more uniformity in citizen databases
to co-ordinate data sharing at a Pan-Indian level. More as different

State Governments are developing different applications, so proper coordination

at the national level is required to ensure economy of effort as also

interoperability of data.






CONNECTIVITY: Connectivity issues have to be dealt with at a
national level. This will be critical to the successes of IT initiatives

in the country. Internationally, huge capacity is being built-up over

terrestrial networks. The 'project oxygen' by the CDR group will provide

bandwidths upto one terabit a second.






The Government of AP is structuring a JV involving the AP State Electricity
Board (APSEB) wherein the latter's existing transmission and distribution

network can be used to string fibre, thus substantially reducing the

cost of setting of the backbone.






AP STATE WIDE AREA NETWORK (APSWAN): The State Government is
using a fiber optic connectivity between the state headquarters and

each of the district headquarters for setting up a WAN for voice, video

and data communication as part of a governmental intranet. The APSWAN

will also provide connectivity for linking up with governmental databases

for the AP value-added network services.






CABLE TELEVISION NETWORK: Connectivity will be the main issue
for providing internet access and distance education in the country.

With nearly 15% of the state's population having access to cable network,

the installation of reverse paths will be possible to provide internet

and governments will have to do good groundwork to realize the full

potential of this medium, especially for applications like distance

education.






ENABLERS: A new concept of 'CIOs' in government will have to
emerge. These leaders apart from domain expertise in governmental departments

and their activities, have to be fully equipped in IT.






REENGINEERING: IT should ideally be used as a strategic tool
for redefining and streamlining governments, public services and not

restricted to mere automation of processes.






INFORMATION CONTENT: Creation of digital information content
is integral to the computerization process. Governments will have to

move fast to digitize Acts, rules and regulations and all government

orders to make them available over electronic networks. The AP Government

is currently working out the nitty-gritties with Singapore Network Services

for delivering value-added network to citizens.






CYBER LAWS: The delivery of electronic services requires changes
in legal framework. Most governments, especially in the developing countries,

find themselves on a new and unfamiliar piece of turf with regard to

IT. Unless adequate planning and thought goes into the process of IT

for better governance, the prospect of all failure is likely to be a

real one!









"HR
is what drives the IT industry today."







-R Chandrashekhar, Secretary, Dept of IT, Government of Andhra
Pradesh.

He

left a Doctorate course in Solid State Chemistry to join Civil Services

in 1975. If this was not enough a diversion, R Chandrashekhar took a

two-year study leave in the middle of his career to do an MS in Computer

Science from Pennsylvania State University. And right now he is busy

creating 'linkages,' as he calls it, for the Andhra Pradesh Government's

IT initiatives. Having served in various capacities in the commerce,

finance and export promotion departments, of central and state governments,

Chandrasekhar is now holding the dual portfolio of the Secretary, IT

Department, AP Government and MD of Andhra Pradesh Industrial Infrastructure

Corp (APIIC). Chandrashekhar spoke to DATAQUEST on the government's

perspective about the IT industry in the state. Excerpts:

On the IT department

in the state.



Set up in May 1997, the IT department is a very young department. In
a nutshell, the profile can be defined as being responsible for overall

coordination and planning of all government IT initiatives. For this,

we basically adopted an integrated and holistic approach. There are

three main focus areas-create a proper environment for IT; generate

the required human resources and; drive the use of IT in the state.

The department designs policy decisions in terms of strategy and approach.

To drive all these activities is by no means an insignificant task and

requires a lot of pushing.

On AP's success

in mobilizing resources for investments in IT.



The underlying strategy is to create linkages. For Hi-Tec City, we teamed-up
with L&T who invested 89% in the venture. The rest, we pooled by

selling land to other companies. The same was the case in IIIT, wherein

we invited participation from companies. IBM has invested Rs12 crore

in the venture while all the other companies are pumping in around Rs3-4

crore each. Even the state WAN is being set up on a build-own-operate

basis while for the value-added network services, we have tied up with

Singapore Network Services. Thus for managing resources, we have invited

the private sector's interest, enterprise and finance.

On the objectives

of e-governance.



Investments in technology takes place in areas where demand exists.
E-governance can become an inherent strength of the government and should

be seen as a prime priority by the government. IT can play an important

role in creating a competitive society. And so the reason behind promoting

its use in government machinery is to try and position ourselves to

face competition that future holds.

On the growing

telecom needs of the state.



Telecom is a major aspect and we are taking it very seriously. The WAN
is to meet our short-term needs. We are studying our medium-term and

long-term requirements and have already initiated dialogue with some

parties.

On the intrinsic

changes happening within the government.



Extensive use of IT allows you to plan many things. Firstly, it allows
fast decentralization and coordinated decision-making without compromising

on accountability. Restructuring will be an intrinsic process here and

we are not approaching it from that angle. We are looking at citizen

orientation. Any consequences have to be assimilated within the inherent

structure.

On the role

of bureaucracy in shaping the future of IT in AP.



In IT, as everyone knows, it is not the quantity but the quality of
manpower that makes the difference. The use of technology in initiatives

like e-governance requires a clarity of objectives and clear direction

at the highest levels of the government. This has been amply demonstrated

in countries like Malaysia and Indonesia. In addition to that there

has to be a team. We now have a core team of 6-10 people. But we need

over 50-100 key people to drive these initiatives. Each department has

to have one project leader to devise important strategy. The core team

is on the job of identifying that set of population and train them.

On the euphoria over Hyderabad.



Basically IT industry is today both, intensely competitive and driven
by people. From both points of view, Hyderabad stands right at the top,

not only within the country but globally too. In terms of cost-effectiveness

and competitiveness, the city offers the best. Also the government support

is crucial. It is a known fact that in any developing country, extensive

use of IT has to be driven by single-minded pursuit and support of the

government. Ultimately, it is not just government services but a whole

lot of opportunities that will evolve from this kind of infrastructure.






N SAILAJA,


in Hyderabad.

 

Budding

Giants






INFOTECH ENTERPRISES


BVR Mohan Reddy,
CEO




608, Maitrivanam,


HUDA Complex, Ameerpet,


Hyderabad 500038


Tel: 291020





CAD/CAM and GIS are Infotech's strengths. A Rs12 crore and 800-strong
employees Infotech is now spreading wings into e-commerce and ERP systems.

Infotech is venture capital funded by IDBI which holds a 26% stake.

Business expanding fast, the company is aiming at a Rs 100 crore turnover

by 2002 AD. BVR Mohan Reddy, CEO, Infotech, says excellence drove the

evolution from a product driven focus to process orientation and towards

assembly line production. People make all the difference to grow up

the value chain.

VISUALSOFT



DVS Raju, CEO


Plot No. 1271,


Road No. 1, Jubilee Hills,


Hyderabad 500033


Tel: 216714





VisualSoft is making waves, both on product and technology front. Set
up in 1995, VisualSoft's biggest success has been in timing its product

and services. VisualSHIFT, the company's Y2K compliant product is a

big hit in the international market with already half-a-million units

sold. However, VisualSHIFT is being looked at more as a good launch

pad for future business. Platinum Technologies, the global major, is

the sole distributor for VisualSHIFT. With things on Y2K front moving

very fast, the three-year-old company is watching out for newer directions

that would emerge in 1999. These include the launch of its Euro Conversion

product Visual EuroSHIFT. The company is also poised for growth in the

Cyberwane wing, its ecommerce division.

PRAMATI TECHNOLOGIES



PS Jayaraghavendra,
MD




402,, Everest Block,


Aditya Enclave, Ameerpet,


Hyderabas 500016





Pramati Technologies is the typical example of those companies which
emerged winners through technology and ideas. Though not in the big

league of players, Pramati definitely has emerged as a focussed company

in a span of just one year (officially launched in April 1997). Says

PS Jayaraghavendra, MD, "Somehow right from the beginning, we made

right choices. We selected Java as technology. We chose java on server

side and HTML on client side, which is a very good combination and is

now being prescribed as the best combination". A `valued partner'

of US-based insurance group BlueCross BlueShield, Pramati is looking

out for suitable partnerships. An agreement has also been signed with

a US company which helps startup companies, to devise a strategy for

the company.

SIERRA OPTIMA

LTD



Sarath Surya,
CEO




SVR Towers, 8-2-1/B/1,


Punjagutta,


Hyderabad 500082


Tel: 3730368, 3746122





Listed in Oracle's annual report as one of its preferred solutions partner,
Sierra Optima continued the upward trend clocking a near 100% growth

last year. Options of platforms other than Oracle are now being explored.

Major activities include migration tools, technologies and services,

ERP-based consulting, developing web- based applications and projects

in our areas of expertise. Started in 1992, the company now employs

over 140 professionals. Sierra Optima has adopted to the GAAP standards

and is one of the few in the country to have excellent financial transparency.

"There are no simple rules for finding high leverage changes, but

there are ways of thinking, that make it more likely", speaks the

attitude of this Hyderabad-based fast growing company.

BAAN INFO SYSTEMS

INDIA PVT LTD



S Ramanathan,
GM




8-2-120/112. Banjara Hills


Road No. 2 Block A,


Off Palace View Estate,


Hyderabad 500034,


Tel: 217299





BaaN's Hyderabad development center is to take up two-thirds of its
product development activities by 2002. Though affected by the recent

lay-offs in the company, the Hyderabad center continues to be a strategic

one for Baan. New products were released last year, which also saw the

setting up of Baan Institute at Hyderabad which recently announced new

course curriculum in line with the new product releases. Baan is to

shortly move into its integrated office space spread over 20 acres in

Infocity, part of the Hi-Tec City.

CMC LTD



Surendra Kapoor,
Executive Director (SI)




Gachibowli,


Hyderabad 500019


Tel: 3000401/501





CMC's huge development center at Hyderabad is one of the PSU's two intelligent
townships built here and in Mumbai. The center has a well-diversified

portfolio of applications in Real-time Systems, Online Transaction Processing,

Process Control, Datacommunication and Networking, Image Processing

and GUI/Windows. Some of its popular software are the Railway ticketing

system (IMPRESS), Finger print identification software (FACTS) used

by Police, Mumbai Stock exchange software, etc. A diversified portfolio

indeed that only a PSU can boast of.

MENTOR GRAPHICS

INDIA



Susheel Chandra,
CEO




Uma Plaza, Nagarjuna Hills,


Hyderabad 500082


Tel: 3351477





Mentor Graphics set up its unit in Hyderabad in 1997. The subsidiary
of US-based parent company of the same name, Mentor Graphics is active

in intellectual property creation and distribution, embedded software

development, knowledge-sourcing consulting, etc., besides core competencies

in Electronic Design Automation (EDA) industry.

DE SHAW INDIA

SOFTWARE PVT LTD



Shakti Sagar,
CEO




Third Floor, G Pulla Reddy Building


Begumpet,


Hyderabad 500016


Tel: 3323274





DE Shaw India Software set up in 1996, is mostly into internet-based
products. Its first major successes include called Juno, the world's

first free electronic mail service and FarSight, a site on the World

Wide Web offering integrated online personal finance service. The Hyderabad

center is one of a dozen closely-related units of the $800 million group.

Back To Home

| Back

To Content

Copyright Cyber Media India Ltd.



You must read the terms and conditions before
using this service