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Ten Point Strategy for Promoting Gujarat as IT/ITES
- 1.Set Aspiring Goals for
GujaratIT/ ITES Every plan starts from an aspiring goal. Indian IT industry had goal of $50 Billion exports by 2010. Gujarat Government should set up a similar goal for the state also say $10 Billion IT/ITES Revenue by 2020.
- 2.Promote Local Entrepreneurs and Local Firm to Achieve Global Scale – What current IT/ITES centers of excellence such as
Bangalore, Chennai, , Pune, Mumbai, Noida and Gurgaon have in common? They all have at least one of the Top 10 IT/ITES Company headquartered in their region. Hyderabad Bangalorehas Infosys, Wipro; Chennai has Cognizant; has Satyam; Pune has Tech Mahindra; Mumbai has TCS; Noida has HCL and Gurgaon has Genpact. Hyderabad
Investment by big companies only would not make a region as center of excellence unless a local firm has scaled up. The case in point is of
Government should indentify few local firms which can scale up and give these local firms preference for government work and local industry work, to help these local firms achieve the initial economics of scale.
There are companies which have centres in
- 3.Encourage Rivarly and Cooperation between firms - Why
has emerged as leaders among other IT/ ITES centers of excellence? One of the reasons is the rivalry between two big firms Infosys and Wipro. The management literature has examples that when firms vigorously compete with each other for work and talent but share other location dependent resources, the centers of excellence are created. Bangalore Gujaratgovernment should promote healthy competition and rivalry among local firms like it is doing in auto sector.
- 4.Prepare Master Plan for Infrastructure, Manpower Supporting Industries and Other Catalyst factors - What kind of resources will be required for $10 Billion IT/ITES business? Office space, residential space, manpower, transportation, entertainment among others things. What kind of factors do the companies consider when they decide their IT/ITES location strategy?
There is no need to reinvent the wheel as some success has already been achieved. Here the best feedback the Government can get is from local entrepreneurs and companies, who have opened their centers, about their concerns and frustration points. Remove their frustration points and wheel can be accelerated.
Backpaper calculation says , $10 Billion revenue can give employment to 5 lakh employees , utilize space of 50 million square feet etc
- 5.Promote Gujarat as
for Public Sector and Analytics – Every center of excellence have achieved some specialization because of manpower and supporting industries. Gurgaon is known for the call centers, Centerof Excellence Bangaloreis known for IT and product development, Mumbai is for known for Financial captives, is for known for Pharma Services etc. Hyderabad
How can Government promote
- 6.Promote Gujarat as an
for Cloud Computing – Getting a pie of new work is easy than fighting for existing work. So Government should also concentrate on developing expertise and manpower in upcoming technologies such as Cloud Computing. Government can setup center of excellence in Cloud Computing at IIM Ahmedabad. Emerging Center
Gujaratas Captive Centers Destination – Every other IT/ITES Center of Excellence has captive center of few fortune 500 firms. Government should identify few Fortune 500 firms (Automobile Firms) who do good business in Gujaratstate and request these firms to open their one of captive centers in the state.
- 8.Establish a Venture Capital Fund – Establish a Venture Capital Fund in collaboration with IIM Ahmedabad to promote young technology entrepreneurs to start and grow their firms in
- 9.Reach out to Gujarati Diaspora – Gujarati Diaspora is employed in technology companies world wide. In
also because of lack of opportunities, many Gujarati engineers have moved out to other locations. Government should reach out to them for two reasons. The first reason is to encourage them to come back and improve the competiveness of India Gujaratstate. The second reason is to seek their help in marketing attractiveness of Gujaratto the firms, who want to outsource their work or who want to set up captive centers. This is similar to the role played by the NRI’s in the initial days of ’s outsourcing revolution. India
- 10.Aggressive Marketing to Promote
Gujaratas IT and ITES Destination– What good the policy and attractiveness of state is if it is not marketed to decision makers? Employ aggressive marketing similar to Vibrant Gujarat as “Great Gujarat: Preferred IT and ITES Destination”