HYDERABAD , 13 January — GITEX Hyderabad and its associated India IT Forum were held from Jan. 7 through Jan. 9, 2002. It was the first GITEX trade show organized by the Dubai World Trade Center outside the Middle East. Andhra Pradesh Chief Minister N. Chandrababu Naidu had been the major promoter of the twin events, but he was unable to participate in their openings due to rules associated with the local elections. In his place, AP Governor Dr. C. Rangarajan gave the opening remarks.

The governor stated that the global slowdown in the IT industry should be viewed as an opportunity to analyze the reasons behind the downturn and find ways to improve so that the Indian economy would not be similarly affected in the future. He emphasized that Indian IT companies should ask themselves if they were doing innovative work or simply repetitive tasks, which were less likely to survive in a competitive market. He emphasized that there was a need for Indian IT companies to move to high value activities and market sectors where they could excel thanks to their long experience in the IT industry. The governor went on to explain that the economy grew on average by 5.8 percent in the 1990s, but that to absorb the new graduates and take up those currently unemployed, a growth rate of at least 7 percent per annum would be required for the next 15 years. "Fourteen percent of India’s exports are currently from the software sector," said Rangarajan. "It is anticipated that this number will increase to 35 percent by 2008."

It is due to these strong economic pressures and the urgent need for success that so much attention was directed at GITEX Hyderabad. The local press expressed some disappointment with the exhibition. The media felt that the event had been overhyped and didn’t even come close to GITEX Dubai, the yardstick by which all GITEX events are measured.

Andhra Pradesh IT Secretary J. Satyanarayana, had an alternate view. "The show has been beyond our expectations," he said. "We are holding it for the first time and we are holding it at a time when the IT industry has been facing so many problems. So we were really unsure of the response we would have. We had about 50 exhibitors and about 3,000 business visitors. The conference that ran in parallel to the exhibition went very well. We had more than 50 speakers over the three days and all the sessions were packed. This has added value to the exhibition. We haven’t had the smallest of problems on the organizational side. The quality of the business visitors has been extremely high and the exhibitors are quite pleased with the response. We believe that the smooth running of the events will enthuse exhibitors and participants for next year."

Many of the exhibitors had expressed the hope that the Andhra Pradesh government would be helping the local IT industry to market its products and experience to Saudi Arabia for its e-government projects. Satyanarayana agreed that this was a realistic expectation. "We have always believed that the IT industry would flourish in a place on a sustained basis if there was a demand in the market around it," he explained. "By bringing in e-government we are trying to create a demand for IT products and services. So we have created very large projects which have the aim of serving the citizens and which also have the aim of providing education, health care and rural development through IT. In addition we are implementing core projects like financial systems and human resource management systems in partnership with the private sector in such a manner that there is the scope for replicating this elsewhere. It’s a product that we are building. It’s not a service that we are taking from somebody. So this product, with 10 to 15 percent customization, could be transplanted in other countries, and Saudi Arabia is a prime example."

Not all the talk was of products and services associated with e-government. Tejari.com, the online business-to-business marketplace based in Dubai, exhibited at the show. The company is moving to extend its reach to the Asian subcontinent and Tejari.com Managing Director Sheikha Lubna Al-Qasimi held talks with senior government officials to discuss ways to further electronic commerce in India’s burgeoning business sector.

At GITEX Hyderabad there was also an announcement that has the potential to significantly affect the Kingdom’s IT and business communities. Intelligroup Asia, a fully-owned subsidiary of Intelligroup, Inc. (NASDAQ: ITIG) for the first time gave details of its new strategic partnership in Saudi Arabia.

"We set up our Indian operations in 1996," said M.D.S. Bosco, CEO, Intelligroup Asia. "Today we are a leading provider of application development, implementation, support and hosting services with more than 300 customers worldwide.

"Going forward, as far as our Indian operations are concerned we will be concentrating more on providing application support to customers including the customers of our parent and subsidiary companies. We will also be expanding our operations under the banner of Intelligroup Asia into the European region and providing customers with a spectrum of services, products and tools.

"Intelligroup Asia setup its Middle East office in Alkhobar last year with its partner Zamil Birla Technical Services Company Limited (ZABITS). ZABITS is a joint venture between A.H. Al-Zamil Group of Companies, a leading diversified industrial and commercial organization in Saudi Arabia, and the Birla Group, one of India’s largest business houses. We have already made a significant dent in the market by bagging two major orders with the Amiantit Group of Companies and Gulf Stabilizers.

"Localization, we understand is a major concern in the Middle East. Through our partner ZABITS we are addressing this issue. In addition, we are training our people in Arabic using both local resources and resources from Jordan and neighboring countries.

"We of course see tremendous potential in the Middle East market, especially in Saudi Arabia with many major manufacturing companies in place. After our wins and successful ‘Go-lives’ in this market, today we have customers approaching us from all over Saudi Arabia to provide them end-to-end business solutions. With our multipronged approach and clear-cut strategies we are sure of exceeding our target of 100 percent growth this year both in the Middle East and other markets."

GITEX Hyderabad was a good first effort but more will be required in coming years. There was quite a bit of dickering over whether the show would take place in the current economic and political climate affecting the region. Such doubts should never be allowed to blossom. Planning for the next addition of GITEX Dubai starts even before the current show closes and cancellation of the exhibition is never an option. That is what is required for a successful event.

This year’s GITEX Hyderabad was split between the Taj Krishna and the Taj Residency. That discouraged attendance at the event and an alternate location must be found. There was little creativity associated with the show. The stands were very basic. The staff in the booths need better training in public relations. More senior corporate officials should be available to talk to media and potential clients. And the mosquitoes that entered in whining clouds on the final day of the event definitely should not be invited next year! To learn more about IT in Andhra Pradesh click to www.ap-it.com.

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