System error in India's Silicon Valley

Thru Asia Times Online

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It is the unexpected corners of the country - the smaller towns and cities - that are rapidly emerging as the new magnets, especially as outsourcing centers. A study conducted by the National Association of Software and Service Companies (NASSCOM) with management consultancy major KPMG says such cities as Jaipur, Pune, Mohali, Ahmedabad, Vizag and Kochi are increasingly attracting IT and outsourcing firms.

The study pointed out that Jaipur, hitherto ignored by big IT companies and outsourcing firms, is poised to emerge as a major hub because of government initiatives and several attractive features of the city itself. 'Jaipur retains the advantage of a small city - lower travel time and real estate and power availability. It has gained global visibility as the tourism hub of Rajasthan and is trying to leverage this for IT and ITES [IT enabled services] industry,' the study said. According to NASSCOM, about 30% of India's outsourcing revenues ($12.5 billion last year) will be headed to smaller cities within a few years.
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Kotak Mahindra Bank enters Rajasthan

Thru Sify.com

Expanding its business, Kotak Mahindra Bank opened its first retail banking branch in Rajasthan at Jaipur today.
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This was the third bank which opened its branch in the recent past in Jaipur. The Chennai-based Bharat Overseas Bank and the Catholic Syrian Bank also had opened their branches here recently.

"Rajasthan has a vibrant industry and trade and Jaipur is one of the fastest growing cities in India. It offers good business opportunities with its tourism and gems and jewellery trade. I see immense potential for growth and expansion in the State", Bank Executive Vice-Chairman and Managing Director, Uday Kotak said.

Infosys Eyes Jaipur For New Facility

Thru Financial Express

JAIPUR, SEPT 23: Infotech major Infosys Technologies is on a reconnaissance mission to set up base in Jaipur for its Rs 1,000 crore software-cum-residential centre. Infosys chairman NR Narayanamurthy is learnt to have written to chief minister Vasundhra Raje last week in this regard for acquiring 1,000 acres of land within 30 km of Jaipur city. Ms Raje has already unrolled a red carpet welcome to Mr Narayanmurthy and his team, along with all possible assistance in this regard.

A fact-finding team from Infosys had already held a close-door session with Ms Raje in this regard, during the recent Economic Policy and Reforms Council, said highly-placed sources.

“A team from Infosys has approached us for acquisition of 1,000 acres of land,” Sreemath Pandey, secretary in the state Information Technology department told FE.

In response, Raje has promised them all help and had even assisted the team in conducting an aerial survey in order to determine the location of the centre. The team was escorted by officials from RIICO and Bureau for Industrial Promotion (BIP), sources said.

“The team is scheduled to come back with a blue print of the proposal for the venture,” said Mr Pandey. Subsequently, officials said that the company would set up a liaison office in Jaipur. A major factor which seems to have led the IT major to focus on Jaipur is its proximity to Delhi, even while retaining its tranquility.

The company is also learnt to be scouting for areas in Bhopal and Pune. The state government is in the process of coming out with a revised IT policy in the coming months. Until now, the lack of infrastructure was said to be the biggest handicap in wooing IT and IT-related business in Rajasthan.

For the state, it would be a major achievement as it would herald a new era in boosting investment in the state’s IT sector. In fact, the Infosys interest may also act as a trigger to woo others to the state.

However, despite the state government’s repeatedly revision of IT policy to woo investments, new ventures have not seen the light of the day. Even as some BPO centres have come up in the state, large companies have not yet taken any keen interest in the incentives offered by the state government under its IT policy.