THIRUVANANTHAPURAM, 8 September 2007 — Kerala is fast becoming a favorite destination of business process outsourcing companies and the opportunities being thrown up in the state would be on display at the GITEX, the annual computer and electronics trade show in Dubai beginning today (Saturday), a top official said.
N. Radhakrishnan Nair, chief executive officer of the city-based Technopark, India’s first technology park which is among the three largest IT parks in the country today, and Infopark in Kochi, said he plans to present the new information technology hubs before the global investors at the show.
“We receive a lot of inquiries from new companies every day but the state needs much more built-up space to accommodate them all. We hope to find foreign partners at the GITEX to develop infrastructure,” he said.
Last week RR Donnelley & Sons, the Chicago-based Fortune 500 Company that was founded more than 140 years ago, announced the launch of its second BPO facility at the newly-constructed Thejaswini building at the Technopark to provide transaction processing and financial management services to clients in Europe and the US and it expects to add substantial number of professionals from here to its global workforce of approximately 65,000.
Currently, 125 technological companies operate out of the state-run Technopark where some 16,000 information technology professionals work. Self-contained campuses of Infosys, Tata Consultancy Services, Leela Group and Tata Elxi are also coming up at Technopark.
“We have a large pool of resources in terms of manpower because of the traditional nature of the city being an academic and research and development city,” Nair said.
Kerala’s tech industry has brought in about Rs.7 billion last year in software exports and it is expected to grow by 200 percent this year. A growing number of companies are turning to Thiruvananthapuram because of the lush green ambience, unpolluted atmosphere and availability of talent at relatively lower cost.
“The cost of manpower is much lower than in other software destinations like Bangalore and Chennai. The cost of living is much lower and the quality of life is one of the best in the country,” he explained. However, the state still lags far behind its southern neighbors like Karnataka, which exported software worth Rs.487 billion and Tamil Nadu that brought in Rs.207 billion.
However, Nair explains that with the current employment level the state’s actual revenue should be much more. “With 16,000 professionals on the rolls, Technopark alone is estimated to generate Rs.30 billion. I think that is not being accounted for since many of these companies are based outside the state and the billing goes there,” he said.
“Technopark continues to attract renowned global brands like RR Donnelley because of its state-of-the-art infrastructure and access to an exceptional talent pool,” Nair said. Spread over 300 acres and some 3.2 million sq. ft. of built-up space in ten imposing structures, Technopark hosts big names in the industry like Ernst & Young Middle East, US Technology, NeST, IBS, RR Donnelley Global BPO, Suntec, GCI Enterprise Solutions, Allianz Cornhill, RM ESI, Alamy Images, Kanoo Group and Toonz.
Technopark offers incubation facility for young entrepreneurs with innovative ideas and Torque, started by a group of city-based engineering college students two years ago, has grown into a Rs.100 million company.
“Engineering colleges in the state churn out 25,000 graduates every year and more than double the students from the state come out of campuses based in the neighboring states. But employing them is a big challenge for the companies and so we are also planning a finishing school for them,” Nair said.
“We have to give them technical and nontechnical soft skills as well as basic etiquettes of the industry. These youngsters are the biggest assets,” he said
It also offers Smart Business Centers where entrepreneurs can work in a plug-and-pay atmosphere paying a nominal fee. “The business centers allow them to experience the ambience and facilities at the world’s greenest technology park before doing actual business,” he said.
“Mostly companies from abroad prefer the facility. There are 15 centers where you can just bring in some computers and start work. This would be a perfect launch pad,” he explained.
He said at least one-third of the information technology (IT) professionals in the neighboring states are Malayalees, who want to return to the state. “I receive at least five e-mails a day from those who want to return. If we create enough built-up space we could accommodate all of them,” he said.
The state government now plans to incorporate a holding company, retaining 51 percent stake in it, to create additional spaces in major towns. It would partner with private investors to launch infrastructure projects. “It should necessarily not be IT parks. Facilities for other sunrise industries can also be considered. Major infrastructure companies like Dubai’s Emaar have already approached us with such projects,” he said.
Infrastructure Kerala Limited (InKel) in which the nonresident Indians have substantial stake, would be one of the partners to develop similar facility in Kochi. Work on the Rs.50 billion Techno City in 507 acres here would begin by the end of this year.
Nair said the groundbreaking for the 246-acre Smart City promoted by Dubai’s Tecom Investments in Kochi was expected this month and the project would also attract huge workforce and add to the state’s software exports.
Three companies — Wipro, IBS and Tata Consultancy Services — are setting up their campuses in Infopark in Kochi which is also plans to add 400,000 sq ft to the existing built-up space of 325,000 sq ft.
