IT Park


Mphasis, an EDS company ( will be a HP company soon) is planning to setup a BPO operations in Trichy and Coimbatore which will start operating from the end of 2008. It will have about 1500 people working in these centers although the distribution between Trichy and Coimbatore is not known.  Mphasis has about 27000 employees in India and they are planning to add 8000 more in 2008.

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There has been long and fierce debate rages in this blogspace portraying pros and cons of Trichy as a player in Information Technology.  I found this interview with Anton Ravindran, Group CEO and co-founder of The Genovate Solutions , located in Bangalore, Hyderabad and Trichy in which he clearly elicits the reasons why Trichy is a great place for IT companies. Read this interview to understand the mindset and approach towards Trichy by Business people.

 Hopefully this will put an end to the skeptiscim that is lingering among some people’s mind regarding Trichy’s practical values in IT.

We are all enamored about the focus of IT and ITES companies who are looking at the Tier II and Tier III cities. But now it appears that due to the enormous congestion in Tier I cities, the development of industrial clusters, corridors, estates, hubs and a whole lot of units in the services sector are choking themselves in this congestion and the private and public companies ( Non IT) are looking to move their facilities to smaller cities.

Nasscom has identified the following cities for rapid growth in the very neat future.

Chandigarh, Pune, Visakhapatnam, Vijayawada, Mangalore, Mysore, Kochi, Coimbatore, Madurai, and Tiruchi.

But they also identify that the cities like Pune and Coimbatore are already overcrowded and falling into the same vicious cycle of more growth leads to more migration which leads to more growth and they think this cities are reaching a tipping point in favour of other tier II cities. The pressure on these towns has begun to show, exposing once more the inadequacies of the systems, and the inability of the private sector and the government agencies to act in tandem to promote new investment centres.

So what is the expectation of these companies ?

Better physical and social infrastructure in these towns.

So what infrastructure they are talking about ? Physical and Social infrastructure like below.

Physical infrastructure will include roads, transport, services, housing, air and rail connectivity, while social infrastructure should provide for educational institutions, health services, recreation facilities, and hotels.

Some of the companies are going away from the SEZ type development where they will build a township with all the amenities in a conclave somewhere outside the city. ( It reminds me of BHEL township.. It is so yesteryears…. We need to get over this)

Cognizant’s Managing Director and President R. Chandrasekaran says: “The primary reason for the IT industry to be attracted to a Tier II city or a Tier III city is its educational infrastructure and the resultant quality talent pool. The second important criterion is infrastructure. Availability of ‘A’ category commercial real estate space, preferably with SEZ notification, good roads, airport with good connectivity, and good hotels, is important.

Even if one or more of these may not exist initially, visible efforts to develop them in parallel become important. Otherwise, the initial enthusiasm will die down and companies may not grow in these locations.”

How very true.. It clearly says that the expectation from these companies is not that everything like great infrastructure should exist before they move in , but the public and private companies should have a plan to improve the infrastructure and should execute the same with a plan. These companies are ready to grow with the city but just needs a promise and a plan with honest execution.

Is is too tall to ask ?

I don’t think so.. This is a great opportunity for Trichy to wake up and add up / Speed up its already improving facilities.

Source: The Hindu.

With Trichy Airport raising to the standard of International Airport with its facilities and connections, plans for creating a ring road around Trichy that connectes Navalpattu and the passenger traffic between Trichy and Bangalore are being recogonized as a true indicator of potential IT resource availability in Trichy. According to the ELCOT director Mr. Uma Shankar, for the establishment of one million square feet built up space in the sprawling 135 acre site at Navalpattu, the ELCOT is in the process of readying architectural design.  The plan is to have smaller companies operate from the built up space and allow the bigger players to create their own campusses.

The one striking feature to this article in Hindu is, it does not give us any new or specific information about the park. All the information present in the article is what we know already. Would have been great if it could have provided some information on which companies have agreed to setup offices and what is their proposed timetable. I don’t see that anywhere in the article.

Also the ringroad plans are being developed now and no one knows how many layers of approval ( both financial and political) that it has to go through before it gets approved.  There is no timetable information here yet. 

Wikimapia is a user driven site that is trying to emulate wikipedia’s success in information. It is a peer driven site where anyone can submit information about any location in the world and it will peer reviewed and approved before becoming official.  I wish the peer review process is transparent so atleast we will know what are the resources that were used for reviewing.  Without this, I don’t put my money on the validity of the review.

I wish the Hindu article had given some specifics about the development instead of putting together all the facts known before.

Hopefully we will get some great information on our IT park’s progress very soon.

There appears to be a lot of confusion whether we are getting IT park near Trichy and if so how big and who is setting up shop there etc. When I look up the Ministry of Commerce Site, and looked at this document of formal approvals granted, it shows that only 49.9 Hectares (approx 123.305acres) have been formally approved to ELCOT ( search for Navalpattu ) to setup a SEZ in Navalpattu.

Looks like the givernment approval has been acheived and it is a major step. Now it does not mean that we have a timetable to get companies into IT park as it is a completely commercial decison and will be done by IT companies themselves. 

Trichy is in the radar of TCS. The plan for TCS is to recruit 32000 new hires this year. Majority will no doubt be in Chennai. But there should be a good amount of recruitment in Trichy and Coimbatore. It also tells us that TCS is eying a development center in Trichy. That is good news for all the Engg Students who can get a chance to do internship. I think the main competitor for Trichy in wooing  IT giants like TCS will be Coimbatore. Well we will see. How it materializes.

With IT parks and SEZ zones popping up all over the country which is driving the speculative land pricing like crazy, only the powerful and the rich are getting benefits. Seldom the people living in those lands and who own them for longtime get much benefits. We hear stories of forcible land acquisitions from the local tenants only to turn around and sell them to the government and private parties for higher price is all too common.

Now the government is waking up and trying to do something about this. A law is in works which will make the industries acquiring the land to rehabilitate the people from that land.

The following Quote is from the Rural Development Ministry source

We have a two-pronged strategy. Besides enacting a new R&R Act, the Land Acquisition Act too would be amended to give the new law an overriding effect over the Land Acquisition Act and the Special Economic Zone Act,” said a Rural Development Ministry source.

The act is called relief and rehabilitation policy and it will soon see the light of the day in the cabinet.

I don’t understand the lethargy. It it not common sense that human greed mostly takes over the good nature when large and quick money is involved. Don’t we have to have this law before approving all this IT parks and SEZ zones ? Now most of the country know the the SEZ and IT parks lands are way to do quick buck and the greedy elements will certainly find loopholes in this law.

This still supports the theory and notion is we are growing too fast for our own good. But Growth is required at this pace to keep up with the world but people with good foresight also is required to keep up with the growth pace.

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