April 2005 Edition



Spreading the IT Wealth

In recent years, the expansion of India's IT Service Companies has been an important factor in accelerating the economic growth of India's major metors, particularly in the southern half of the country. Only recently has Kolkata finally attracted the attention of India's IT bigwigs who have been surprised ar how they missed out on its enormous intellectual potential for so many years.

As land prices escalate in IT hotspots such as Banglaore and long commutes become a growing source of irritation and frustration, one would think that India's IT majors would be scouring the country for alternative sites to expand in. While it is understandable that foreign businesses would prefer to locate their Indian R&D centers in more familiar and already established locations offering international air connectivity, there ought to be no such biases on the part of Indian IT investors. Whether it is lack of awareness of all the options or a reluctance to fight the 'herd mentality', senior Indian IT managers have generally shown a singular lack of boldness in picking their expansion sites.

Even as many IT companies have found it difficult to retain existing talent in the more expensive metros, they haven't yet given India's smaller towns with good universities and good engineering colleges a serious look. For instance, take Vishakhapatnam: its Andhra University probably outranks Hyderabad's Osmania University in most respects, and its Engineering College is probably superior to JNTU's Hyderabad branch. With an attractive seaside location, daily flights to Hyderabad, direct air connections to other Indian metros, and good train connectivity to much of the country, it ought to be a reasonable alternative to Hyderabad or Chennai. However, it appears that land acquisition delays might be the bottleneck, and if that were to remain an issue, Vijayawada ought to be a good second choice. With a reasonably good University of its own, a new daily air connection to Hyderabad, good highways, and a large number of passing long-distance trains, it could easily relieve some of the burden on Hyderabad. Tirupati, which also provides daily air links to Hyderabad, could also serve as a reasonable alternative. With a good university, one of Andhra's top five engineering colleges, and a scenic location roughly equi-distant between Bangalore and Chennai, it ought to merit as serious consideration as have Mysore and Mangalore. The university town of Warangal - with its nationally renowned Engineering College, and relatively unknown but fascinating Kakathiya heritage might also be deserving of more serious attention.

In neigbouring Tamil Nadu, Trichy, Coimbatore and Madurai, should all be attracting very serious attention for their vibrant science and engineering educational institutions. With each offering daily air connectivity to Chennai and beyond, it is a wonder that they haven't yet attracted any major IT-related investment. In Karnataka, where Engineering colleges are scattered virtually throughout the state, the university towns of Hubliand Belgaum (with recently acquired air-connectivity) have also not yet come under the radar of major IT players.

In Maharashtra, Kolhapur with its fine University, and proximity to several Government PG Colleges and Private Engineering Colleges has also not yet attracted much attention, even though it is now connected by a daily flight to Mumbai.

However, it is perhaps in the Hindi-speaking states where the indifference (or even prejudice) of IT majors appears to be most glaring. By and large, Indian industry has simply passed over the Hindi belt, ignoring the vast amount of scientific, mathematical and analytical talent that could be easily tapped by creative enterpreneurs. In Madhya Pradesh, Gwaliorand Jabalpur (like Bhopal) boast of  Universities with affiliated science and engineering colleges that could provide a wealth of keen graduates, no less capable than those recruited from South India's Private Engineering Colleges. With daily air connections to Delhi, and proximity to numerous historic sites and scenic locations, these towns ought to be a pleasant counterpoint to the stress of India's overstretched metros. Even bustling Indore, with its numerous colleges and research institutions, expanding IIM, and nearby hillside escapes, ought to be a better option than grossly over-built Mumbai.

Even UP, for all its notoriety offers several options worth considering. Although Agra is better known for its spectacular monuments, it is not entirely lacking in good educational institutions. With daily air and Shatabdi connections to Delhi, and a realtively less-polluted environment due to strict Supreme Court guidelines, its Southern areas could provide more livable options once Noida and Gurgaon are saturated. In addition, Agra could be a draw for graduates from Kanpur, Meerut and Aligarh, as well as graduates from several new Private Engineering Colleges that have come up in the region. Also not to be ignored are Allahabad and Benaras. Both offer a strong science and engineering educational infrastructure, and both are on the country's air map. While each has its infrastructural shortcomings, each city has neighborhoods that are pleasant and livable. With expected improvements in roads and bridges, they could merit a second look. In Rajasthan, Jodhpur and Kota ought to be in the running with Jaipur.

It should also be noted that although the Hindi-belt generally lacks the widespread proliferation of engineering colleges as might Andhra or Tamil Nadu, its smaller Universities (such as Jaunpur or Rewa) have fairly good Computer Science and Maths researchers. In addition, PG colleges in the smaller towns are producing some intellectually keen math and science graduates and post-graduates.

Indian  industry could also take a serious look at three  steel cities with a very technologically aware middle class: Durgapur, Rourkela and Jamshedpur. IT companies that take the trouble of locating their Development Centers in these cities might be very pleasantly surprised at the quality of the manpower that they might find in these somewhat forgotten college towns.

Of course, one of the reason that these very viable options have been sidelined is that they have lacked strong political backing by State or Local Governments. In addition, their local Industry and Commerce associations have not been able to market their strengths to potential IT investors.

Neither has the Central Government taken any steps to encourage or facilitate much-needed geographic diversification of India's still rapidly expanding IT industry. But it is only a matter of time when CEOs of India's leading IT industries will be compelled to acknowledge that all their IT facilities cannot be located in Bangalore, Chennai, Hyderabad , Navi Mumbai or Pune. The high cost of procuring land, and the inevitable squeeze on infrastructure and related resources will force geographic diversification. The wise will simply do it first, rather than wait for things to get worse in the already saturated metros.


Related Essays:

Higher Education in India

India - an IT Superpower?

Human Development and Infrastructure in the Indian Subcontinent

Is India Shining? Where is India headed in terms of Culture and Civilization?


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