01-16-2004, 06:47 AM
Despite backlash, Hyderabad continues to attract BPOs
Friday January 16 2004 00:00 IST
IANS
HYDERABAD: The backlash against outsourcing in countries like US and Britain notwithstanding, multinationals continue to flock to this Andhra Pradesh capital, rapidly making it a preferred destination for business process outsourcing (BPO).
The Bank of America's recent decision to establish its IT-enabled services (ITES) centre and Kanbay Inc.'s announcement of plans to set up its development-cum-learning centre will further strengthen this southern city's image as an important IT/ITES hub in the subcontinent.
Bank of America, the third largest bank in the US and Kanbay Inc., a $105 million US-based systems integrator, are to sign memorandums of understanding (MoUs) with the Andhra Pradesh government shortly.
Kanbay will be spending Rs. 500 million on its proposed development-cum-learning centre.
Their move comes close on the heels of many multinationals making similar decisions.
Only three months ago, the $12 billion Computer Sciences Corporation (CSC) announced it would set up its fifth development centre in India at Hyderabad.
In November last year, Tata Consultancy Services (TCS), one of the world's largest global software services, inaugurated its largest global development centre built at a cost of Rs. 1.5 billion.
Similarly, in June last year, GE Capital International Services (GECIS), the ITES arm of GE Capital, commissioned its largest BPO facility on 14 acres of land.
And that is not all.
Microsoft is setting up a 2,000-seat technical help desk, the largest such facility of the company outside the US. Dell Computers' 2,000-seat call centre is also likely to become operational soon.
Officials in the IT department are confident that Lloyds Bank, Cap Gemini E&Y, Computer Associates and many others would soon announce their plans to locate BPO units in Hyderabad.
They will be only adding to the long list of multinationals that have either set up their bases here or are in the process of doing so.
The list includes IT giants like Microsoft, IBM, Oracle, Infosys and Satyam.
Going in Hyderabad's favour are the low rentals compared to cities like Bangalore and Chennai, good IT infrastructure, availability of abundant manpower skills and an IT-savvy Chief Minister N. Chandrababu Naidu.
The monthly lease/rentals are Rs. 22 to 35 per sq ft against Rs. 35-45 in Bangalore and Rs. 30-36 in Chennai.
Besides offering a rebate of Rs. 20,000 per job created on the land cost and 25 percent rebate in power tariff, the state government has also formed the autonomous single window agency AP FIRST (Agency for Promotion and Facilitation of Investments in Remote Services) to help IT companies.
From 1992 to 2003, IT firms have made an investment of Rs 2800 crore in the state. Investment this fiscal year alone is expected to cross Rs 600 crore against Rs 542 crore during 2002-03.
The number of IT firms registered with the Software Technology Park of India (STPI), Hyderabad, today stands at 1,165 against 1,154 units operating in Bangalore.
Though Hyderabad lags behind its competitors Bangalore and Chennai in total IT exports, it is a clear leader in the ITES sector.
Despite the slowdown, the sector recorded an impressive growth of 104 per cent last fiscal year and contributed 39.16 per cent of the total exports of Rs 3668 crore from the state.
ITES exports have grown to Rs 1,411 crore in 2002-03 from Rs 690 crore in 2001-02 (24.11 per cent of the total exports of Rs.28.55 billion). It was a mere Rs163 crore in the previous year but recorded a dramatic 323 per cent growth in 2001-02.
As India's ITES opportunity is estimated to be $24 billion with direct employment of two million by 2008, Andhra Pradesh is leading the way to capitalise on this opportunity.
"By 2008, Hitec City (the IT enclave in the city) will emerge as the biggest integrated IT park with approximately six million sq ft of world-class IT office space and it will be home to 75,000 software professionals," said Ajay P. Sawhney, special secretary, IT.
Cashing on the huge demand for office space at the Hyderabad Information Technology Engineering Consultancy City (Hitec) City, L&T Infocity Wednesday signed an MoU with the state government for developing the fourth phase of the Hitec City to build one million square feet of world-class IT office space.
L&T Infocity, a joint venture between Larsen and Toubro and the Andhra Pradesh Industrial Infrastructure Corporation Ltd, will build the space along with modern common amenities on 14 acres of land at an investment of Rs 200 crore.
Friday January 16 2004 00:00 IST
IANS
HYDERABAD: The backlash against outsourcing in countries like US and Britain notwithstanding, multinationals continue to flock to this Andhra Pradesh capital, rapidly making it a preferred destination for business process outsourcing (BPO).
The Bank of America's recent decision to establish its IT-enabled services (ITES) centre and Kanbay Inc.'s announcement of plans to set up its development-cum-learning centre will further strengthen this southern city's image as an important IT/ITES hub in the subcontinent.
Bank of America, the third largest bank in the US and Kanbay Inc., a $105 million US-based systems integrator, are to sign memorandums of understanding (MoUs) with the Andhra Pradesh government shortly.
Kanbay will be spending Rs. 500 million on its proposed development-cum-learning centre.
Their move comes close on the heels of many multinationals making similar decisions.
Only three months ago, the $12 billion Computer Sciences Corporation (CSC) announced it would set up its fifth development centre in India at Hyderabad.
In November last year, Tata Consultancy Services (TCS), one of the world's largest global software services, inaugurated its largest global development centre built at a cost of Rs. 1.5 billion.
Similarly, in June last year, GE Capital International Services (GECIS), the ITES arm of GE Capital, commissioned its largest BPO facility on 14 acres of land.
And that is not all.
Microsoft is setting up a 2,000-seat technical help desk, the largest such facility of the company outside the US. Dell Computers' 2,000-seat call centre is also likely to become operational soon.
Officials in the IT department are confident that Lloyds Bank, Cap Gemini E&Y, Computer Associates and many others would soon announce their plans to locate BPO units in Hyderabad.
They will be only adding to the long list of multinationals that have either set up their bases here or are in the process of doing so.
The list includes IT giants like Microsoft, IBM, Oracle, Infosys and Satyam.
Going in Hyderabad's favour are the low rentals compared to cities like Bangalore and Chennai, good IT infrastructure, availability of abundant manpower skills and an IT-savvy Chief Minister N. Chandrababu Naidu.
The monthly lease/rentals are Rs. 22 to 35 per sq ft against Rs. 35-45 in Bangalore and Rs. 30-36 in Chennai.
Besides offering a rebate of Rs. 20,000 per job created on the land cost and 25 percent rebate in power tariff, the state government has also formed the autonomous single window agency AP FIRST (Agency for Promotion and Facilitation of Investments in Remote Services) to help IT companies.
From 1992 to 2003, IT firms have made an investment of Rs 2800 crore in the state. Investment this fiscal year alone is expected to cross Rs 600 crore against Rs 542 crore during 2002-03.
The number of IT firms registered with the Software Technology Park of India (STPI), Hyderabad, today stands at 1,165 against 1,154 units operating in Bangalore.
Though Hyderabad lags behind its competitors Bangalore and Chennai in total IT exports, it is a clear leader in the ITES sector.
Despite the slowdown, the sector recorded an impressive growth of 104 per cent last fiscal year and contributed 39.16 per cent of the total exports of Rs 3668 crore from the state.
ITES exports have grown to Rs 1,411 crore in 2002-03 from Rs 690 crore in 2001-02 (24.11 per cent of the total exports of Rs.28.55 billion). It was a mere Rs163 crore in the previous year but recorded a dramatic 323 per cent growth in 2001-02.
As India's ITES opportunity is estimated to be $24 billion with direct employment of two million by 2008, Andhra Pradesh is leading the way to capitalise on this opportunity.
"By 2008, Hitec City (the IT enclave in the city) will emerge as the biggest integrated IT park with approximately six million sq ft of world-class IT office space and it will be home to 75,000 software professionals," said Ajay P. Sawhney, special secretary, IT.
Cashing on the huge demand for office space at the Hyderabad Information Technology Engineering Consultancy City (Hitec) City, L&T Infocity Wednesday signed an MoU with the state government for developing the fourth phase of the Hitec City to build one million square feet of world-class IT office space.
L&T Infocity, a joint venture between Larsen and Toubro and the Andhra Pradesh Industrial Infrastructure Corporation Ltd, will build the space along with modern common amenities on 14 acres of land at an investment of Rs 200 crore.