Smart City to change Kerala's IT landscape dramatically
Even as the controversy surrounding the prestigious Smart City project is raging, Kerala's IT Secretary, P H Kurian is an optimistic man - some one who believes that the Smart City can change Kerala's IT landscape dramatically. While the state has been lagging behind its southern neighbors, Kurian, believes that with projects like these in place the state can achieve a software export target of Rs. 5000 Crores in the next 3 years. He tells us where Kerala figures in the IT/ITeS map of the country.

1. Some time back Cochin was touted as a hot BPO destination. But no major investments have happened over the last one-year unlike other emerging centres like Pune. Have there been any concrete steps in this direction? Are we close to seeing any new deals happening?

Yes. Nasscom has rated Cochin as a 2nd best destination for BPO in India. It is not true that major investment has not happened during the past one year. Leela Group has developed an infrastructure in the Infopark vicinity of Cochin and a major US based BPO Company viz, Outsourcing Partners International just started their operations at Kochi in that facility. They will be ramping up the centre to a head count of 2000 in the coming one year. Sutherland Global Services Pvt Ltd has plans to set up a BPO cum training facility in a 15-acre campus at Kochi. They have identified a suitable land in the Kinfra property at Kalamassery, Kochi. ACS, a Fortune 500 company had started operations in Infopark during the past one year, and is expanding with a headcount of 1100 during this year itself. We are also in an advanced stage of discussion with the Dubai Internet City for the expansion of present Infopark to a 300-acre world class IT/ITES Habitat. The scenario will undergo a dramatic change once the Smart City is established.

2. Kerala is also clearly lacking as far as infrastructure is concerned to attract the BPO talent. Companies might have huge problems moving their middle and senior managers to the state. Can we see some steps in this direction too?

To my knowledge quite a large number of Malayalee middle and senior Managers are willing to move to Kochi. As mentioned above, infrastructure issue will be addressed through the Smart City Project. L&T has taken 4 acres of land within Infopark and will complete 5 lakh sq.ft space by the middle of 2006.

3. Kerala's software export figures for last year are still miniscule compared to the other south Indian states. Isn't this worrisome considering that you have been talking about bold IT policies for the last 3-4 years? Can you name three steps that you think will change the scenario drastically? Any new initiatives in the offing soon? What is the software exports target you have fixed for over the next three years?

The Smart City at Kochi and the 2nd phase of Technopark, Trivandrum will change the scenario drastically. Infosys Technologies is developing a 50 acre campus in the 2nd phase of Technopark and will be ready by July, 2006. TCS has also taken 26 acres of land for the development centre in the Technopark, Wipro has taken 24 acres within the Infopark Kochi and an independent development centre is being developed here. TCS has also moved in to the Infopark, Kochi. US Software, another major company has taken 36 acres of land in Technopark 2nd phase and will set up an independent centre. With these new developments we expect to achieve software export target of Rs. 5000 Crores in the next 3 years.

4. The state has been having an image problem for many years now. The new controversy surrounding the smart city at Cochin hasn't helped matters either. How do you think Kerala will be able to fight this image problem?

Yes. Our State has been suffering from an image problem. Such a perception has developed during the '70s and '80s. The industrial relations of Kerala has been improving from the '90s and is one of the best in the country now. We are making all out efforts to communicate to all the stakeholders about this reality. Out of the 150 IT/ ITES companies from Kerala, none have so far faced any labour issues. The Technopark and Infopark has not lost any working days due to labour related issues. Power supply is also one of the best in the country. As mentioned earlier, with the starting of operation by Indian IT majors such an image problem no longer exists.

5. Unlike his predecessors the current CM Oommen Chandy is seen to be taking a more active role in promoting IT and investments in general. How much has this contributed to a change in the investment climate?

The efforts of the present Govt have brought in major Indian software Companies like Wipro, TCS and Infosys who have set up shops in Kerala and are going to ramp up their presence in the State within the next two years. Such majors selecting the State for investment, is an ample testimony for the conducive investment climate of the State.