PUNE: Charge of the Light IT Brigade

DQI Bureau
New Update

Pune is buzzing with activity. The state government is laying six tracks of

fiber optic cable along the expressway. Every inch of space in the 400-acre IT

park set up by MIDC and STPI has been sold out, with another 400-acre park under

development. Consider the financials: all told, IT investments in Pune totalled

over Rs 100 crore in 2000-01 alone. Trained manpower, you said? Well, the city’s

engineering colleges and IT institutes spew out 3,000 IT professionals every

year. Industry acceptance? Nasscom itself promoted IT in Pune in June last year–the

first time the software association pushed any city. Fot those still

apprehensive about corporate acceptance, here’s the clincher–Wipro, as part

of its expansion drive, has chosen Pune as the first base for its global R&D



Pune: Future IT Capital?

For Against

to Mumbai, India’s financial capital
Not a capital city

Nasscom, MCCIA, Pune Vyaspeeth pitch in

political leader spearheading the campaign of Pune IT City

cuts travel to Mumbai totwo hours,

new international airport near Mumbai

international airport

quality engineering institutes
Low influx of talent

mostly on embedded systems, communications, VLSI, applications software,

chip design, network products–on the high-end of the value chain

large MNCs: most companies are small, entrepreneur- ownedÂ


Competition for Bangalore’s status as India’s IT hub? Perhaps not, but

Pune is quietly transforming itself from being just an educational and

engineering base–which, by the way, has earned it sobriquets like ‘The

Oxford of the East’ and ‘India’s Detroit’–to a hi-tech city without

parallel. As the Pune government puts it, "We might still lose out in this

race to figure on the global IT map if we stay quiet. With so much being written

about technopolises and cyberabads, why should Pune, a city with equal if not

better charm, lag behind?" Why indeed?

There is a similarity between the head that wears the crown, Bangalore, and

the other that aspires to wear it, Pune. The latter has the image of being a

laid-back town, fit for holiday-makers and students, and a pensioners’

paradise–something Bangalore too was called till IT arrived to transform the

landscape. Pune is now fighting hard to shrug off its rustic countenance, in its

bid to covet global IT majors. It is already number five on the Indian IT

ladder, following Bangalore, Mumbai, Hyderabad and Delhi. Interestingly, all the

others are state capitals.


But Pune lays a qualitative claim to fame. As Anand Deshpande, MD, Persistent

Systems says, "In Pune, the quality of software developed is far better

than all other centers, including Bangalore and Hyderabad. You will find

esoterically good quality in Pune. Companies in other cities like Hyderabad and

Bangalore have predominantly low-end to medium-scale work. Pune does

top-of-the-line development." This stand is vindicated somewhat by the fact

that most IT companies in Pune are largely into technologies like embedded

systems, communications, VLSI, systems software, applications software, chip

design and network products–the higher end of the value chain.

An overview of the investments in the city: Wipro’s development center,

housed in the 600-head-capacity 100,000-sq meter campus at Hinjewadi Park, will

focus on providing design and development services for global communication and

embedded systems. The center has already garnered development projects from

global majors. Then there’s Finolex Group’s International Institute of

Information Technology at IT Park, with an investment of Rs 20 crore. The

institute, which will offer intensive PG diploma courses in software development

and telecom, will provide residential facilities to 300 students. Small research

labs will be set up on the campus in association with companies like Microsoft,

Intel, Sun, SAP and Lucent Technologies. The institute will also focus on

software development for the SAARC countries. Finolex also plans to lay fiber

optic lines in parts of Maharashtra at an investment of Rs 600 crore, with the

highway-parallel line being laid under its aegis.

Then we have the Internet-over-cable service launched by Silicon Mountains

and Global Electronic Commerce Services, touted to be the first-of-its-kind in

the country. Silicon Mountains has installed a 100-km hybrid fiber cable

backbone spread across the city. Global has a gateway in Pune for this project

and its satellite gateway–with bandwidth of 20 Mbps–is already operational.

The fiber cable has bandwidth of up to 200 Mbps (traditional copper lines offer

only 2 Mbps)…indications enough that Pune is going all out to bolster quality

infotech development, a fact also recognized by MNCs Versaware, PTC, IBM and

Veritas, and Indian giants Satyam, Infosys and Wipro, all of whom have set up

huge development centers here.


IT minister Pramod Mahajan’s efforts at taking infotech to the masses also

finds a common voice among agencies like CDAC, which is known for its pioneering

work in multilingual software, and Pune Vyaspeeth, an NGO promoted by

parliamentarian Suresh Kalmadi. It suffices to say that Pune may be behind in

terms of numbers–of large MNCs, IT revenues, investments–but it has the

potential to figure in the top league. Deshpande says, "Pune is not lagging

in terms of innovation."

Corporates are all praise

Corporates are all praise


Major Development Centers at

STPI Pune, Hinjewadi

(Square meters)

Infosys 100,000
Wipro 100,000
Veritas 40,000
Cognizant 40,000
Geometric 10,000

KPIT 20,000
STPI 8,000


of Info Tech




Paeans for the city flow, almost an invitation for many more to follow.

Ganesh Natarajan, deputy chairman and MD, Zensar, says, "The city has

talent, with people who are comfortable building a career here rather than

wanting to migrate to the US." Sudip Banerjee, chief executive, operations,

Wipro, says, "We decided to come to Pune because of the availability of

local talent and excellent infrastructure facilities being offered by the

Maharashtra government." Such comments are expected of Pune, long called

the education capital of India.

The large number of outstation students has also influenced the cultural face

of the city. Deepak Shikarpur, chairman, IT sub-committee, Maharashtra Chamber

of Commerce, Industry and Agriculture, says, "A cosmopolitan work set-up

encourages talent from other parts of the country as well. Couple this with

pleasant weather, facilities almost comparable with India’s main metros and a

lower cost of living. With such comforts in his pocket, the IT professional is

free to concentrate on his core function!"


After the recent initiatives by Pune’s Vidya Prathisthan, IT education has

even spread to rural Pune. An IT center has been set up with an investment of

over Rs 12 crore. Shikarpur says, "Soon farmers from this village will

start selling their foodgrain on the Net." No wonder that with such quality

talent emerging from Pune’s institutes, city-based development centers churn

out top-quality software work.

Advantage infrastructure

Pune also scores on the infrastructure front. Banerjee says, "We are

happy with our experience, particularly with state government agencies like the

Maharashtra Industrial Development Corp, which has been most cooperative."

He has reason to be happy; the Wipro center at Hinjewadi STP was up in just

eight months. Real estate and infrastructure availability forms the basic

framework to set up any business, and Pune offers both of good quality in ample

measure. Agrees Murali Santhanam, MD, JobCurry Systems, "Pune has certain

inherent advantages that contribute to the growth of IT here. The biggest factor

is the ample scope of real estate development around the city. This means that

emerging as well as growing IT companies need not acquire large premises in the

heart of the city in order to succeed. The setting up of STPs and business

centers on the outskirts has effectively led to emerging townships in these



Among the IT parks coming up in the city, apart from the DoE’s STPI Pune,

are the Pune IT Park, Magarpatta Cyber City, the Kharadi Knowledge Park and the

Software Technology Park at Talawade. All provide ready-to-occupy plots with

24-hour electricity, and dedicated telephone exchanges and earthstations for

bandwidth. And as a bonus, the Pune Municipal Corporation has permitted software

development centers to be set up in residential premises, which has further

boosted IT growth. Remember, Infosys was born out of a two-bedroom flat in Pune.

Shikarpur feels the day is not far when Pune will have more IT companies than

beauty parlors. "Even intelligent housewives will start Net development in

the traditional cooperative style from the city," he predicts.

Pune scores in yet another area: the converging IT and BT sectors. RK Arora,

executive director, CDAC, says, "Pune can develop disciplines like

bio-sciences, bio-informatics and genomics." He feels institutions like NCL,

NCCS, CDAC, Bio-informatics center of Pune University are equipped to take this

newly emerging area to greater heights. Arora says, "This will decidedly

distinguish Pune from other city destinations in India–converging IT with

BT." The Hinjewadi Phase II project coming up near the present Infotech

Park will be called the "IT-BT Park".


Bottlenecks remain

Before proclaiming Pune as the new IT Eden, there are some hiccups. Transport

is one. Pune’s airport is still controlled by the Indian Air Force, and there

is no sign that Pune will get an airport of its own. But a proposed

international airport in the vicinity of Navi Mumbai and the much talked-about

expressway should make life easy for frequent travelers. And the city itself

does not have much of a public transport system to talk about. You need to

depend on your own private vehicle or the ubiquitous three-wheelers.

Arora feels lack of planned development may inhibit growth. He says, "As

the infrastructural needs build up, there is a necessity of commensurate planned

initiatives ahead of time to cater to the developing needs of roads, housing,

recreational facilities, commercial plazas, water, electricity and civic

amenities. The city administration needs to be alive of this situation and take

adequate measures to prevent opportunities from becoming bottlenecks."

Murali Santhanam, MD,, feels the state government is positively

oriented towards growth of IT. "However, it needs to concentrate on

upgrading core infrastructure sectors like public transport, roads, traffic

regulation, water and more importantly, power supply."

Anupam Bhide, CEO, Indra Networks–which is developing a product that should

make web access faster–says "Companies in the Silicon Valley have done

well because you’ll find any skill you need among them, people with esoteric


"The Maharashtra government should lay more emphasis on marketing Mumbai

and Pune effectively. Though Maharashtra accounts for most of the country’s

software exports, it hardly gets credit for it. This is largely the result of

some unimaginative marketing of the state’s trump cards. The need of the hour

is to bring about fundamental changes in infrastructure and e-governance to

market the state within and outside India. I believe things are now moving in

the right direction," says Achyut Godbole, MD, Concio Technologies.

Ashutosh Parasnis, director, PTC, says, "It’s a chicken-and-egg story: to

build the infrastructure first and attract the investors or vice-versa." He

feels the government should invest in top-level infrastructure for better

connectivity, travel and also in making the procedural aspects simpler.

Surendra N Agarwal, president and COO, Neilsoft, feels Pune is well

positioned to emerge as the country’s IT hub and lists the following issues in

his preferred order of importance: technical competence, education, labor

supply, government incentives, telecom infrastructure, productivity and cost and

venture capital.

Bhide agrees. "Pune needs a more focussed assistance from the state

government. It needs to invite a lot of dignitaries. Any PR exercise from the

government is not apparent and is not happening adequately." Natarajan

assures of making Zensar Pune’s best employer, providing ample job challenges

in a range of technologies and domains. He adds confidently, "We aim to

change the geography and history of Pune in IT in the next few years."

Existing industry

Pune, the home to a strong automobile and engineering industry, promises to

provide a fertile ground for IT organizations too. Some world-class facilities

have already been set up by companies specializing in software development and

test automation for the engineering and manufacturing industries. And

opportunities in Pune are immense in IT-enabled services for engineering process

automation and IT infrastructure automation. The city is all set to emerge as a

much sought-after IT hub of India.

Bijesh Kamath in Pune with inputs from Nanda