Advantage Bengal - Kolkata has emerged as the fastest growing ICT ....more
INDIASOFT 2009 will be organised at Yuba Bharati Krirangam, Salt Lake Stadium, (Adjacent Hotel Hyatt Regency) Kolkata, West Bengal, India.
WEST BENGAL --- The Cyber City of the East and the City of Joy!
Today West
Bengal is fast emerging as India's most preferred destination for ICT
sector. West Bengal is a new home to major ICT services players both at
national and international level.
Rich Talent Pool, low operational cost, excellent connectivity etc. have
made the ambience of West Bengal conducive to become the ultimate IT
destination in India. The State is now heading to rank among the top 3
IT states in India by 2010. With a pro-active State Government, West
Bengal is today on the move and vision’s to be the next silicon city.
ADVANTAGE BENGAL
Though being a late starter Kolkata has emerged among the fastest
growing ICT destination since the turn of the century. In the year 2007
– 2008 the state grew @ 46% when the national average growth during the
period was at 32%. There are strong reasons for this phenomenal growth.
To begin with the State has attracted substantial investment since the
liberalization of the economy standing second only to Gujarat. The
growth in State Domestic Product at 5.66% and in Per Capita Income at
7.06% has been the highest in the country during the period 1999 – 2000
to 2003 – 2004. In terms of security and stability Kolkata has seen the
lowest incident of violent crime among the major cities in the country.
Besides, the commitment of the State Government to economic reforms and
the economic development achieved by the State has totally changed the
perception of Kolkata in the eyes of potential investors. Thus there are
over 50 companies active in Kolkata employing around 75,000
professionals with the exports pushing past Rs. 5,000/- crores, almost
all the big IT companies have their presence in Kolkata including TCS,
Wipro, IBM, HSBC, Cognizant, Genpact, Cap Gemini, Deloitte& Touche, Atos
Origin, PwC, Skytech.
More specific to the sector West Bengal is very strong in the key
enablers for growth in the IT industry namely, talent, cost of
operation, investor support, infrastructure and policy. West Bengal has
often been called the State of Mind boasting of some of the best
institutions in the country : IIT-Kharagpur, IIM-Calcutta, Calcutta
University, Jadavpur University, Indian Statistical Institute, Kolkata,
Bengal Engineering and Science University and prestigious colleges like
Presidency and St. Xaviers. Besides there are 16 Government
Universities, 67 Engineering Colleges and 450 Degree Colleges with 10
Central Research Institutions located in the State. Indian Institute of
Science, which was inaugurated by the Prime Minister, has started
functioning, while Dhirubhai Ambani Institute of Communication and
Information Technology is in the pipeline. About 20,000 students are
enrolled in the Engineering colleges. In terms of excellent English
Language skills about 35,000 students pass out from English medium
schools every year with the State having the largest number of ICSE
schools. If we take into account the index of internet penetration in
India as per the home PC installation, we find that Kolkata is at a
staggering 100% followed by Bangalore 88%, Chennai 69%, Mumbai 58% and
Delhi at 48%. This is a very clear indication of the edge Kolkata has in
the ICT sector.
Kolkata’s strength also lies in the domain of Banking, Finance and
Insurance with 1,20,000 students enrolling in Commerce. Country’s
biggest life insurer LIC run their largest operation in West Bengal. One
of the leading non-life insurer, NIC, also has its headquarters in
Kolkata. Being the traditional manufacturing and mining hub in India,
Kokata’s strength in Engineering Design is second to none. In the
creative sphere the renowned Art Colleges and Shantiniketan make Kolkata
an ideal base for visual art. It is little wonder that the Toonz
Animation Academy had chosen Kolkata as their base for training
professionals in this fast developing field and now DQ Entertainment the
biggest animation company in the country is jointly running the Academy
with Webel.
Cost competitiveness is the other major attraction of Kolkata as it
offers the lowest costs compared to other cities. In the consumer price
index for urban non-manual workers, Kolkata stands lowest at 421 with
Hyderabad and Bangalore topping with 493 and 482 respectively. In terms
of the salaries for fresh graduates, Kolkata is again at the lowest with
Rs. 66,000/- compared to Mumbai at the highest with Rs. 110,000/-
followed by Delhi at Rs. 90,000/-. According to NASSCOM former President
Mr. Kiran Karnik, Kolkata’s strength is low attrition rate which is
embedded in the culture – people won’t leave jobs for a Rs. 1000/-
increment. All the companies operating out of Kolkata appreciate this
specific characteristic. Consequently the attrition rate in IT sector in
Kolkata is only 5 – 10% as compared to Delhi, Mumbai and Bangalore where
rates are 30 – 40%. In the power situation West Bengal is sitting pretty
as number one again with the lowest tariff rates at Rs. 3.5/- per unit
compared to 4.7/- per unit in Chennai and 4.3/- per unit in Gurgaon. No
wonder NASSCOM and Gartner have ranked the State No. 1 in power
availability and quality. Thus taking into account both the non-labour
and labour related costs West Bengal tops in cost competitiveness with a
clear 12% advantage. The low costs, good infrastructure and excellent
human resource are now encouraging emergence of new satellite IT
destinations in the State at Siliguri, Durgapur, Kharagpur and Haldia.
Taking into account the projects which have already been completed or
are nearing completion there is going to be an addition of approximately
20 million sq ft. of built up space over the next 2 years for the
industry to service their clients spread over the world. More bandwidth
and redundancy from BSNL and alternative national long distance loop
from Reliance will further enhance the connectivity. The five earth
stations (BSNL, STPI) are among the best in the country. In terms of
infrastructure, Kolkata offers best in class local transport options. We
have a fully functional underground train network. The New Town,
Rajarhat and Salt Lake will be connected with metro by 2010. There is a
new road to Alipore from the IT hub Salt Lake. The commuting time from
the IT hub to the Airport has been reduced to 20mins and the Airport has
also been connected with the Circular Rail. The road network in the
State has been strengthened and several new flyovers in Kolkata have
greatly eased the traffic. Besides, a number of International Airlines
have started operating out of Kolkata. The city also offers excellent
social infrastructure, the best of clubs, oldest golf course and a rich
cultural heritage.
West Bengal is probably the only State in the world that can boast of
the highest mountain range, the Himalayas, the most fertile Gangetic
plains, the mangrove forests of Sunderbans and the Sea. The rich
bio-diversity and wild life are the other attractions of Bengal. Kolkata
is also the happening place for GenX, with plenty of large shopping
malls, multiplexes, bowling allies, billiard pools, cafes, night clubs,
beer pubs, discotheque and many sporting facilities. In terms of policy
issues relating to IT industry the most important has been the granting
of public utility status and other exemptious in the labour laws and
Shop and Establishment rules to facilitate the 24 x7 working of the BPO
industry.
According to Price Waterhouse Cooper in the final score sheet of the
important IT centers in the country, Kolkata scores the highest taking
into account knowledge capital, operating costs, power and telecom,
transport and housing, political stability, law and order,
infrastructure health and work culture. NeoIT, a US based consultancy
organization has declared in their survey that Kolkata will emerge as
the third most attractive BPO destination in the world after Warsaw and
Hyderabad by 2010. This rapid growth and the favourable conditions augur
well for the future but we have to ensure that with the availability of
increased space the required manpower is also made available for the
industry. Even more important is to make sure that the graduates and the
employees available for the industry are equipped with the required
skills to increase their employability. The State government is serious
about augmenting the skills of our graduates and engineers by organizing
tailor made domain specific training and orientation courses. The
academic institutions will also be asked to explore the possibility of
arranging evening classes, summer courses and bridge courses to instill
the desired skills in the candidates to make them fully employable for
the IT industry on their graduation. It is going to be an enourmous task
but the State Government is not going to leave any stone unturned to
achieve the same. The State Government has already taken initiative in
this regard by opening Finishing Schools at Taratolla and Durgapur for
training the engineering graduates and make then industry ready. These
Finishing Schools also function as training cum placement centers where
companies can come and pick up candidates and also get their own
candidates trained as per their requirements.
The New Town Rajarhat and the existing IT hub at Salt Lake, Sector – V
have already changed the skyline of Kolkata as well as its perception.
Almost all the important names in the IT sector are already present in
Kolkata and the excellent facilities that have come up, providing state
of art world class infrastructure for the IT and ITeS companies have
become a big attraction. Besides Rajarhat and Salt Lake 21 Special
Economic Zones (SEZ) for IT industry have already been approved by the
Ministry of Commerce & Industry, Government of India. While the Wipro
SEZ in Salt Lake and Unitech in Rajarhat have already started
functioning Bantala SEZ is about to take off. Besides there are a
several more applications in the pipeline for IT SEZs in the State. So
far as IT parks are concerned as already mentioned the State Government
is striving hard to take the IT industry to other cities in Bengal for
more inclusive growth.
In Durgapur an IT Park (25 acres) on PPP model has been awarded to
Shapoorji & Pallonji. Webel has also started a Finishing School in
Durgapur and has plans to develop its own incubation center this year.
Important companies like Pinnacle, Assurgent, HTMT etc. are already
active in Durgapur employing approximately 3000 to 4000 people in all.
At Kalyani a plot of 100 acres has been identified for development of an
IT SEZ by Webel on behalf of IT Department. The land transfer
formalities are being observed and the application for the SEZ will be
submitted shortly. Efforts are also being made to get one IIIT at
Kalyani under the scheme of HRD Ministry, Government of India. It is
also expected that Reliance will be establishing its Institute of
Information and Communication Technology at Kalyani. Haldia will be
taken up subsequently where some private initiative is already afoot for
the development of an IT Park.
In Siliguri, an IT Park (25 acres) on PPP model has already been awarded
to Infinity Infotech. Besides, Webel itself is developing an Incubation
Centre cum IT Park at Siliguri. On the private side Madgul Parks has
also laid the foundation stone for its IT Park at Siliguri. Companies
like Exploretech and Acclaris are already active in Siliguri with more
enquiries being received about the destination. Among the major
companies Videocon is also planning a major SEZ at Siliguri. The State
Government is also planning to open a Finishing School at Siliguri.
The IIT- Kharagpur has already developed a concept paper for a
Biotechnology Park at Kharagpur. In view of the great synergy between IT
and Biotechnology the State Government is going in for a very ambitious
project at Kharagpur for developing an integrated Advanced IT and
Biotechnology Park with some common facilities and state of art social
infrastructure to attract the potential companies. The emphasis will now
be on moving up the value chain and go for more complex knowledge based
products and processes compared to the routine and repetitive Call
Centre kind of activities. At the advanced IT Park at Kharagpur emphasis
will be on R&D and Chip manufacturing / designing along with the high
end knowledge based processing. Thus we look forward to the continued
fast track growth of IT industry in a resurgent Bengal committed to
regain its predominant position among the States of India.
The IT Department through Webel is currently developing two mega
projects for the IT sector. Both these projects are in the vicinity of
New Town Rajarhat. Under the integrated IT Township Projects called
“Kolkata Links” it is proposed to develop an IT Township over
approximately 1600 acres of land on a PPP model. Out of this area 50% of
the land will be kept exclusively for IT companies and on the remaining
land social and institutional infrastructure will be developed including
housing, commercial complex, schools, hospitals etc. On the other
project in Jagdishpur mouza a similar IT hub will be developed where 160
acres of land will be allotted to IT companies and on the remaining area
commercial and housing facilities will come up as support services. Both
these projects will have State-of-the-Art infrastructure and facility.
These two projects will totally change the face of the IT industry in
West Bengal and will certainly make it one of the most attractive
destination in the country. Besides, over 20 million sq. ft of office
space is already under construction exclusively for IT / ITeS industry
based on sanctioned projects and will be delivered over the next two
years. This itself will create over 2,00,000 jobs which is almost 3
times the professional employment in IT sector in Kolkata today.
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