Gujarat on The Global IT Radar

The global meltdown has dented the prospects of the Information and Technology (IT) industry in most Indian states, but Gujarat's IT sector continues to remain defiant and maintaining its stronghold. Ahmedabad, the state capital, has made it to the list of top 31 cities identified globally as an emerging IT destination by the leading consulting firm, KPMG.

The state is recognised as one of the promising destinations for IT and Information Technology enabled Services (ITeS) companies the world over. The rankings are expected to attract huge investments from international IT giants and also strengthen the small and medium enterprise (SME) segment engaged in the state's IT sector.

Gujarat's rich pool of qualified and skilled manpower, favourable business environment, cost advantage and the well developed infrastructure are some of the prominent factors that are encouraging the global IT and ITeS players to turn their attention to this region.

Besides, the presence of leading educational institutes like Indian Institute of Management-Ahmedabad (IIMA) and a 30% cost advantage that the state enjoys over other IT-BPO hubs like Mumbai, Bengaluru and the national capital region (NCR) in terms of compensation levels and rentals are also expected to give a leg-up to capital investments by new IT entrants and international majors who want to tap the potential of this region.

The emphasis laid on SMEs in the IT industry in Gujarat's new industrial policy for 2009, encouraging trade laws and government policies, is also bringing in additional revenues for the state exchequer.

In addition to this, the Gujarat government is leaving no stone unturned to emerge as the next IT/ITeS hotspot and score over its competitors in terms of industrialisation. Government initiatives like financial assistance for the sector in the form of subsidy, access to venture capital funding and a rehabilitation package for non-performing SMEs are expected to pave the way for a brighter future for the state's IT players.

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David Parks is a well known author and has written articles on B2b Marketplaces and Currency Converter, suppliers, Manufactures and many other subjects.