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DQI Bureau
New Update

Andhra Pradesh: Telugu Pride



Post Chandrababu Naidu one did think that IT would lose flavor. Despite his

populist approach, the new chief minister YS Rajasekhar Reddy has tried to

assure the industry that his government will actively promote IT. And life

continues as usual. In fact, the primary survey amongst the dealer community

ranks Andhra Pradesh second in terms of "overall ease in dealing with the

government" and "improvement in service levels due to

computerization". Another

key factor favoring Andhra Pradesh is the cost of living. As per the Consumer

Price Index, it is the third cheapest among the 14 states. However, Andhra

Pradesh definitely has its work cut out in terms of improving the physical

environment and ICT usage parameter to market itself better. The inferior

physical environment may start rankling once investors start looking out for

alternate sites in the state.

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How

They Fare
  Score Rank
Current

Business
27.8 4
Education

& Manpower
71 5
Physical

Environment
67 8
ICT

Infrastructure Availability
16 10

Chandigarh: Off the Radar



While 100% of the dealers polled in Chandigarh were aware about the

government's G2B initiative, only 24% of the dealers felt that there has been an

'overall ease in dealing with the government'. Given the small size of the

state, Chandigarh scores very high on the ICT infrastructure availability. While

Chandigarh rates high across all parameters, if one does a reality check in

terms of STPI earnings, the union territory is nowhere in the picture. The

UT scores over other states in terms of a talented work force and high quality

of life. But lack of office space has become a sore point for the city's

ambition to lead the IT and BPO space. However, neighboring regions like Mohali

and Panchkula are seeing a steady flow of investments.

How

They Fare

  Score Rank
Current

Business
0.2 14
Education

& Manpower
98.5 2
Physical

Environment
62.7 12
ICT

Infrastructure Availability
87.8 2
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Delhi: Capital Punishment



Should it be Delhi or NCR? Investors have stopped considering Delhi in

isolation and include cities like Gurgaon and Noida as part of Delhi. So even

though Delhi scores higher than most states in terms of manpower, infrastructure

etc, one does not see much scope for IT and BPO investment in the state. The

problem is very similar to Chandigarh. Lack of office space or new office at

affordable prices, one of the most important components of any business plans,

will continue to put Delhi at the bottom of investors choice. The state has

topped in terms of ICT availability - the state tops parameters like Internet

subscribers and PCs ownership per thousand people and tele-density. But a

reality check has a different story to tell. The IT channel community, while

fully aware of the government G2B initiatives, is still not happy with what the

government has done as compared to others states.

How

They Fare
  Score Rank
Current

Business
13.2 7
Education

& Manpower
46 9
Physical

Environment
71 5
ICT

Infrastructure Availability
100 1

Goa: Sea of Opportunities



Companies in India are yet to mix business with pleasure. Else, why would

one see Goa, which has one of the best non-IT infrastructure available in the

country, not attracting much IT/BPO investments in the state. We think that

companies start looking much beyond infrastructure after a point. Look at the

state of the Hi-Technology project, which has been conceived a few years ago; it

still continues to face hiccups. Our

own survey validates the point further. While the government is marketing to

outsiders, its own IT dealers seem far from happy about the government's IT

initiatives. While a majority was aware of the government initiatives, only a

quarter of the respondents said they found it easy to deal with government

departments and only half said that there was an improvement in the service

levels due to computerization in the government.

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How

They Fare
  Score Rank
Current

Business
0.20 13
Education

& Manpower
77.9 3
Physical

Environment
100 1
ICT

Infrastructure Availability
39.7 3

Gujarat: The Wait Continues...



Will IT take off in Gujarat? While the government is leaving no stone unturned
for promoting Gujarat as an ideal destination with several initiatives,

investors are still not convinced, it seems. In

terms of work being done by the government at the G2B level, it is surprising to

know that the state ranked fourth in the dealers poll in terms of overall ease

in dealing with government departments. But certainly this has nothing much to

do with computerization, as the state's ranking on 'improvement in service

levels due to computerization' parameter was at the bottom of the heap.

In fact, speaking at the CIT 2004, the chief minister admitted that Gujarat

still lagged behind in the software sector and that inadequate knowledge of

English was a hindrance. Agreed, given that Gujarat ranks eleventh in the

education and manpower availability parameters.

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How

They Fare
  Score Rank
Current

Business
0.8 11
Education

& Manpower
34 11
Physical

Environment
74.2 4
ICT

Infrastructure Availability
19.1 9

Haryana: Neighbor's Envy...



Remove Gurgaon from Haryana and you will have an IT barren land. And this is not
much to say about the initiatives taken by the government, rather the rub off

effect of Delhi, DLF and other private builders. Haryana ranks at the bottom of

the list in terms of its IT channel partners commenting on the state of affairs

with respect to 'overall ease in dealing with government departments' and

eleventh in terms of 'improvement in service levels due to computerization'.

The

state scores high on the physical environment and Gurgaon is a testimony to

this. However, Haryana will have a tough time to develop alternate IT hubs if it

does not take proactive measures in term of increasing and building overall ICT

availability in the state.

How

They Fare
  Score Rank
Current

Business
23.7 5
Education

& Manpower
52 7
Physical

Environment
80.9 3
ICT

Infrastructure Availability
13.3 11
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Karnataka: Time to Think



Karnataka has been a rare state with a 'critical mass' since a long time

ago and this will ensure growth for the next few years. But if precautionary

measures are not taken, the situation can quickly change. Infrastructure

problems are nothing new to talk about but the damage has been done. Wipro

saying that it would not make any fresh investment in Karnataka might hamper big

business coming to the state. However,

it will continue to be the hotbed for smaller companies which see a huge

resource pool readily available in the state. While Karnataka has started

developing the next hub, just outside Bangalore and now promoting alternate

destinations like Mysore and Bangalore (which should have started about five

years ago), it might still turn the tide for the next tier of companies.

How

They Fare

  Score Rank
Current

Business
100 1
Education

& Manpower
74.5 4
Physical

Environment
65.4 10
ICT

Infrastructure Availability
19.5 8

Kerala: Red Threat



Perception continues to be stronger than reality. While Kerala has been

trying its best to woo investors, the trickle is yet to become a flood unlike

its Red brethren, West Bengal. Investors continue to perceive Kerala as a land

of 'bandhs' and 'hartals'. It was ranked along with other states like

Gujarat, Tamil Nadu, etc in other parameters like 'awareness amongst IT

Resellers about G2B initiatives' (10) and 'improvement in service levels due

to computerization' (9).

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Even

though Kochi and Thiruvananthapuram have emerged as the key centers for BPO and

software and services, it has not been able to cash in on the same. Another key

issue continues to be utilizing best-educated and most healthy people in India

into productive economic agents. With the entry of Wipro Infotech into the

state, things may start looking positive, but what is imminent is a perception

change.

How

They Fare
  Score Rank
Current

Business
1.2 9
Education

& Manpower
50.4 8
Physical

Environment
67.4 7
ICT

Infrastructure Availability
21.9 6

Madhya Pradesh: Potent Enough, But ...



A surprise packet in the survey. According to the channel survey, work done by
the Madhya Pradesh administration tops in terms of channel players'

satisfaction. The state score a whopping 95% 'yes' response to the question,

'is there an overall ease in dealing with government departments?' and 93%

for 'is there an improvement in service levels due to computerization'?

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While

infrastructure wise, the state is at the bottom of the ladder, it scored pretty

high in 'health and medical infrastructure'. In terms of IT/BPO companies,

the one big 'magnet' was CSC India. But manpower constraint has forced

companies to shift from Indore for future expansion. The state needs to work on

ramping its infrastructure and generating the critical mass in the state. Else,

the few 'experiments' will quickly wither away.

How

They Fare

  Score Rank
Current

Business
0.6 12
Education

& Manpower
32.1 12
Physical

Environment
70 6
ICT

Infrastructure Availability
7.6 12

Maharastra: Growing and How



The Maratha Tiger plods on. The development of second tier cities, Navi

Mumbai and Pune, has ensured that Maharashtra continues to be among the top tier

states. Investments continue to flow in, but this is due to the legacy factor.

So, while it will continue to grow, the rate of growth may keep dropping until

the government takes some corrective course. And this is evident from the

channel survey.

Maharashtra does not figure very high on the 'ease in dealing with government

departments' parameter and still lower in the 'improvement in service levels

due to computerization'. Maybe the state needs to wake up from the stupor and

start some serious thinking about the future of IT/BPO in the state. Also, the

state needs to start looking at the next level city, closer to Pune and Mumbai

to ensure that future expansion of companies happen only within the state

How

They Fare
  Score Rank
Current

Business
47.1 2
Education

& Manpower
56 6
Physical

Environment
65.7 9
ICT

Infrastructure Availability
26.4 4

Punjab: Getting Attention



Mohali, the key IT/BPO city of Punjab has seen some success, but that is more
because of its proximity to Chandigarh. While Punjab has a good infrastructure,

the lack of required skill sets has been a sore point for the industries. While

Mohali is largely dependant on Chandigarh for its manpower requirement, Punjab

is also getting into action on this front. The administration has started

extending the Chandigarh Training on Soft Skills (C-Toss) test for human

resource development in the BPO/IT-enabled

services (ITeS) sector. With over 50,000 students passing out of colleges and

other institutions in Punjab every year, the state want to hone the technical

skills of these students for prospective employment in the BPO/ITES sector.

However, beyond education, the state also needs to ramp up on its IT

initiatives on the domestic side.

How

They Fare
  Score Rank
Current

Business
1 10
Education

& Manpower
45.3 10
Physical

Environment
81.6 2
ICT

Infrastructure Availability
24.1 5

Tamil Nadu: Hot Shot



Chennai is being as touted as the next Silicon Valley and has become the
happening destination. The state has been able to leverage its lead in the

education and skill manpower to attract companies. Also, traditional strengths

like low cost of living when compared to other metros and lower rates of

attrition among the IT workforce are tipping the scale in favor of Tamil Nadu.

Tamil

Nadu is also witnessing a spate of private investment in creating infrastructure

like Rs 300 crore Mahindra City spread over 1,400 acres. To focus on developing

innovation clusters throughout the state in a phased manner, the government has

decided to shift its positioning strategy to market Chennai first, instead of

the entire state, as a global investment destination for BPO sector.

How

They Fare
  Score Rank
Current

Business
42.1 3
Education

& Manpower
100 1
Physical

Environment
62.8 11
ICT

Infrastructure Availability
20.3 7

Uttar Pradesh: Nowhere to Go



A state, which has all the resources, continues to be at the bottom of the

IT eReadiness survey. High quality manpower is not a problem, thanks to

institutions like IIT-Kanpur, IIT-Roorkee, IIM Luck—now, IIIT-Allahabad, BHU-IT,

MNR Engg College, HBTI, etc and yet IT/BPO industry is unheard of in the state. That

is, if we remove Noida, which like Gurgaon has been more due to Delhi rather

than the state policy and incentives. Conventional wisdom also prevent

investment in a state as perception go against it in terms of poor work ethics,

poor infrastructure (roads, electricity, connectivity, airports), antiquated

labor policies and laws, lack of availability of skilled IT manpower, and

finally lack of technological innovation in the state. If the state is serious

about IT, then it should look at developing alternatives like the Lucknow-Kanpur

corridor. Until then it will continue to be a Noida-dominated UP when we talk

about IT/BPO

How

They Fare
  Score Rank
Current

Business
15.2 6
Education

& Manpower
29.4 14
Physical

Environment
60.6 14
ICT

Infrastructure Availability
5.6 14

West Bengal: The Rising Star



A year ago, investors were doing a wait and watch. Today, it's action

time. West Bengal's effort to transform the 'Red' image to a capitalist

image is paying rich dividends. And how serious is West Bengal? While bandhs

continue but are becoming a non affair for IT/BPO companies which are under the

Essential Services Act and employees are promised security. No wonder, today

West Bengal, read Kolkata, boasts of having all the big ticket companies,

ranging from Wipro and TCS on the IT side to GE and Wipro Spectramind on the BPO

side. Interestingly, with this quick development, software professionals who had

left the city for greener pastures are returning to take up jobs.

A

word of caution. While the going is good, the government should seriously look

at developing alternate hubs such as Kharagpur, Durgapur, etc which can take the

additional load, once Kolkatta moves the Bangalore/Mumbai way. Else, history has

an uncanny way of saying 'Hi I am back'.

How

They Fare
  Score Rank
Current

Business
8.8 8
Education

& Manpower
29.9 13
Physical

Environment
61 13
ICT

Infrastructure Availability
6 13
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