IT sector in State face tough competition

IT sector in State face tough competition
Deccan Herald

As other states up ante and try luring more investments in the Information Technology sector, Karnataka is hoping to keep its investors intact and further, is exploring the untapped potential of its most valued brand — Bangalore. The focus, evidently, will be to blunt the bad word-of-mouth which started surfacing after the city’s continuous exposure to infrastructure falls.

With Mysore registering impressive investments in the last financial year, the State has finally taken a start in getting the focus on Tier-II cities.

However, there is no room for complacency, considering the increasingly audible voices of dissent from resident IT czars and the rise of competitors like Hyderabad (see box). The Government is taking the default alternative — to spread out Bangalore.

“I think the city is definitely ready take on more development in terms of IT. Once the proposal of getting CMCs under one body is cleared, the development will be streamlined. I don’t see an infrastructure issue here,” says M K Shankaralinge Gowda, Secretary to the Department of Information Technology, Biotechnology and Science and Technology.

However, Gowda agrees that dispersal of the industry would be of critical importance for Bangalore to maintain its top stature in the country’s IT space. “Northern Bangalore is the immediate area of focus for us.

The regions towards Tumkur, covering Nelamangala and the Dobbaspet industrial area, will play a key role in driving future growth,” says Gowda. The IT Secretary adds that the proposed Electronic City in Dobbaspet would add to the region’s investment potential.

“We are also looking at the western parts of the city, on the Mysore Road direction. It makes sense to establish industries where you have a ready supply of graduates,” says Gowda.

Integrated township

The IT Secretary stresses on the importance of embracing the concept of integrated township.

“Spaces which combine workplace, homes, malls, schools, restaurants and entertainment outlets are going to be the future,” he says.

Gowda, as expected, doesn’t take words like saturation too kindly.

“CISCO, Intel, IBM, Microsoft and many other big players are investing more in Bangalore. We are having close to 200 new companies every year. Everybody wants to be here,” he says.

Apprehensions about an overcrowded IT city are also cut into with cold figures.

“Bangalore currently has around 3,20,000 — 2,40,000 in IT and 80,000 in ITES — employees in the sector. And the city has a seat capacity of a million,” he says.

HIGHLIGHTS

SOFTWARE EXPORTS GROWTH OVER THREE YEARS

Bangalore

2004-05: 52 pc

2003-04: 46 pc

2002-03: 26 pc

Hyderabad

2004-05: 65 pc

2003-04: 37 pc

2002-03: 26 pc

Chennai

2004-05: 40 pc

2003-04: 20 pc

2002-03: 20 pc

Pune

2004-05: 40 pc

2003-04: 40 pc

2002-03: 25 pc