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.
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 |
||
Score | Rank | |
Current Business |
0.2 | 14 |
Education & Manpower |
98.5 | 2 |
Physical Environment |
62.7 | 12 |
ICT Infrastructure Availability |
87.8 | 2 |
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.
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.
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 |
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 |
||
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).
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'?
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 |
||
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 |