What Makes an Area an ICT City

1
What Makes an Area an ICT City

• By
• Dr. T.H. CHOWDARY
• Director Center for Telecom Management and
  Studies
• Chairman Pragna Bharati (intellect India )
• Former Chairman Managing Director
• Videsh Sanchar Nigam Limited
• Information Technology Advisor,
• Government of Andhra Pradesh
• T 91(40) 5567-1191/ 2784-6137(O) 2784-3121
• F 91 (40) 5567-1111, 2789-6103
• hanuman.chowdary_at_tcs.com
• thc_at_satyam.com
• Talk _at_ Andhra Chamber of Commerce, Vijayawada
  14 Oct 2006

2
Worlds Attention to India

• The Economist (UK), June, 2006
• Can India Fly 14 page supplement
• India is producing far more world class
  companies than China
• Time (USA) June 26, 2006
• Cover pagetrying to find out why the worlds
  biggest democracy is the next great economic
  power and what it means for America

3
Worlds Attention to India

• Foreign Affairs (USA) (July-Aug 2006)
• India is now the fourth largest economy and soon
  it will surpass Japan to become the third
  largestrather than rising with the help of the
  state, India is in many ways rising despite the
  state
• Of the Fortune companies 125 now have Research
  Development bases in India, a testament to its
  human capital.

4
Content of GDP (Figs. in )
5
India as ICT Power (1)
Software Export Industry
6
Employment in Indian IT sector,000
2 mln_at_
06
( Years ending March Estimate _at_ break-up NA)
7
A.Ps Software and ITES Companies

• In 2004-2005 Exports surged by 64.5
• Year 1996 2004 2005 2006
  2007
• Volume (in Rs. Cr. ) 65 5,025
  8,270 12,521 17,000
• of Exports
• Hyderabad about 1200 companies
• Visakhapatnam Units 37 Exports Rs. 70cr
• Vijayawada Units 13 Exports Rs. 24 Cr
• Number of direct employees 1,60,000 adding
  30,000 to 40,000 per year

8
PROSPECT- I T ENABLED / CREATED SERVICES
EMPLOYMENT (INDIA)

• GROSS WORLD PRODUCT
• IN THE YEAR 2010 US
  40 T
• CONTRIBUTION FROM
• SERVICES (60) OF GWP US 24 T
• INDIA'S SHARE _at_ 10 US 2.4 T
• EMOLUMENTS COMPONENT
• (15 TO 50) US 360 TO US
  1200 b
• EMOLUMENTS/EMPLOYEE/YEAR US 5000
• NO OF JOBS (360/1200) b 72 to 240 million
• 5 K

9
Characteristics of (Trade in) Services

• Created in one place/country
• Consumed anywhere else
• Delivered over telecom high-ways
• Information/knowledge-intensive
• Storage, Processing Exchange
• Knowledge workers
• Exemplary Service economies
• Singapore
• Ireland
• Hong Kong

10
Indias Tragedy
1951 2006
Contribution of Agriculture to GDP 67 lt20
Rural Population 85 72
Labour dependent upon agriculture 70 65
11
In Rural India

• Literacy (62) Education ( About 15)
• Per capita income
• All India Urban Rural
• Rs. 30,000 Rs. 56,000 Rs. 8000

12
Unemployment

• Unemployed Graduates 52 lakhs
• Unemployed persons 420 lakhs
• Population growing/yr _at_180 lakhs
• Max. jobs created/yr 100 lakhs
• Rural Illiterates unskilled, unemployable in
  industries, increasingly becoming
  automated/mechanized
• Diploma/Tradesmen to Engineers ratio
• Developed India
• 5.0 1.0

13
India is Graduating Every Year

• All varieties 30 lakhs (3.5l in AP)
• Engineers 4,50,000 (80 to 100,000)
• MBAs 80,000 (15,000)
• MCAs 80,000 (12,000)
• Employability in Tier 1 companies 2 to 10
• Fig. In ( ) relate to AP

14
Characteristics of Indian IT Companies

• Born mostly in mid 1990s and so escaped socialism
  i.e nationalisation
• Born and thriving without government help and
  inspite of obstruction by government ( DOT)
• NRI inspiration Silicon Valley Success
• Indigenous entrepreneurship by foreign-educated,
  nationalist young men Infosys, Satyam, Wipro,
  Infotech
• Foreign Markets Indian talent who built
  confidence and trust-levels
• Pioneers- Texas Investments Bangalore Security
  bogey
• Satyam BPO for John Deere. Little India Moline
  (Illinois) USA
• First Satellite Link for Indian BPO for Satyam

15
How Does a City Qualify

• Hard Infrastructure
• Broad-band telecom links to worlds I.T markets
  (USA, EU,Japan, Australia, Brazil)
• Quality electrical power
• Modern intelligent buildings
• centrally a/conditioned, UPS preferably in a
  cluster (IT Park like Cyberabad in Hyderabad)
• Served by International Airlines
• Copious water supply
• Broad, unclogged roadways to City Center

16
Soft Infrastructure (1/2)

• Culture is more important than infrastructure
• -Nicholas Negroponte
• Digital Internet Guru MIIT Media Lab
• Engineering colleges, Polytechnics in profusion
• University Research Institutes
• Good and Modern Housing Estates
• Hostels for working men/women
• Star-Hotels for global Business Executives
• International Standard Schools ( LKG to High
  Secondary)
• Hospitals with all specialties
• Entertainment tourism facilities
• Banks ( ATMs, Internet Banking.)
• Taxi Services/ Group Transport

17
Soft Infrastructure (2/2)

• Financial Services (Investment, Stocks Shares)
• Chartered Accountants ( GAP qualified)
• Legal Services
• Marriage Bureaux / Counselling
• Shopping Malls with all sorts of goods from all
  over the world
• Real estate Services ( Investment, Sale/resale)

18
Vijayawada STP

• Operational since Y2001 in the ITI premises with
  a VSAT 64 KBPS
• Has now 4MBPS on fiber optic cable can go to 8
  MBPS at 2 Hr notice
• Government ear-marked 50 acres near airport
• RFP for equity to develop land and building
• (Kakinada moved forward Collectorate bldg.
  12,000 ft2 2 companies from Chennai wish to move)

19
Most Importantly(1/2)

• A government which is evangelist about
  education, talent, entrepreneurship
  out-reaching facilitative friendly seductive
• A local body ( Municipal Corporation) which is
  caring, responsive and not greedy providing
  civic services promptly
• Friendly, service-oriented utilities
  telephone, electricity,water-supply,cooking gas,
  local transport

20
Most Importantly (2/2)

• Absence of Inspector-raj
• Health inspector, factory inspector, Excise
  Sales-tax and income tax inspectors, property tax
  inspector
• Labour ( women working at night) Inspector
  Welfare Inspector
• Revenue Inspector
• (Agri-land for industrial use)

21
DhanyawadThank You