IT giants head towards Chandigarh

Chandigarh and its periphery are emerging as hot destinations for IT/ITES services. IT giants like Infosys, IBM Daksh, Virsa, and Outerbay have started operations here in Rajiv Gandhi Technology Park (RGCTP), the country's most expensive IT park, and several others like Wipro, Tech Mahindra, e-Sys, Bharti Televentures, Patni Computers, etc. have their plans lined up for the city.

Chandigarh, Mohali and Panchkula are expecting a combined annual software export of about Rs 1,000 crore in three years. Moreover, Quark, Dell and IDS Infotech are operating from Mohali.

Chandigarh (including Mohali) recorded an IT export of Rs 270 crore and an export turnover of Rs 416 crore in the last financial year.

Inaugurated by Prime Minister Manmohan Singh on September 24 last year (conceived in 2001 by the Chandigarh Administration), the park started over an area measuring 123 acres in the first phase.

Infosys Technologies Ltd was allotted 30 acres as the main anchor company and has constructed a 525,000 square feet state-of-the-art campus. Also, in the first phase the ready built space developed by DLF Ltd is spread over 12.5 acres and comprises six blocks, of 650,000 sq. ft. IBM Daksh, Outer Bay and Net Solutions are among the companies.

Of 42 applicants build-to-Suit sites measuring 1 to 2 acres have been allotted to Amadeus, KMG Infotech, Microtek, Bebo Technologies, Synapse and Alchemist. Infosys, IBM Daksh, Virsa, and Outerbay have started operations in the first phase. Also, as a boost to the software companies, the first phase of the park was approved as a special economic zone by the Centre.

The second phase of the park is spread over 250 acres. Out of this, 125 acres is meant for IT/ITES companies and the remaining area for a Technology Habitat, spread over 125 acres, comprising residential flats, service apartments, community infrastructure, etc. In the second phase, Wipro, as an anchor company, has been allotted 30 acres, Bharti Tele-Ventures 5 acres, e-Sys 6 acres, and Tech Mahindra was allotted 10 acres.

The IT department has already submitted the requisite documents for SEZ approval and expecting that it would be granted very soon.

Seeing the immense response from the IT companies, the administration is in the process of acquiring land for the third phase of the park, which will be spread over another 250 acres of land and they are hopeful that the acquisition process would be completed within 7-8 months. Also, one can well adjudge from the fact that it is emerging as next destination for IT companies as Patni Computers and several others has applied for space in third phase even before acquisition of land.

So far Mohali is concerned, Quark, Dell and IDS Infotech has already commenced their operation.

Aiming at giving further impetus to the IT/ITES sector, the UT administration is now focusing on providing the right business environment for various players, as it gears up to host the E-revolution summit 2006. Notably, after E-revolution 2005, Rajiv Gandhi Chandigarh Technology Park has attracted investments of Rs 400 crore.

Talking to Business Standard, Software Technology Park of India, Additional Director, Sanjay Tyagi said, "We had started with Rs. 7.7 crore as an export turnover in 1998-99, and achieved a sizable growth in 2005-06 touching Rs. 416 crores as a export turnover and further we are hopeful to touch Rs. 1000 crore as software export in next three years."

He further said, " This conclave is an effort undertaken to brand build the area. This would be second conference in the city, where three state governments(Punjab, Haryana, Chandigarh) stand together on a common agenda - creating value in the business ecosystem for IT-ITES/BPO industry and importance of Shared Services in national e - governance initiative."

The Conference's first day will be organized by NASSCOM and the focus is on potential of the northern States, particularly in the Chandigarh Capital Region (Panchkula, Baddi, Mohali included ).

The sessions of the second day on Shared Services will cover sharing of assets, co-owning infrastructure, maintaining service standards, and working cost-efficiently.