“Bangalore is out. Kochi is in,” writes Stephanie Overby, Senior Editor of CIO Magazine, in an article on business process outsourcing (BPO) trends

IT’s glorious opportunities and daunting challenges STATE TRENDS



T. Ramavarman P. Venugopal



There are jobs aplenty and lots to ponder as the State rides the information technology boom





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With IT companies beginning to look at Kerala as a potential investment destination, the State is in for major investment and employment generation and this is likely to bring in its wake major challenges for the government.


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THIRUVANANTHAPURAM: “Bangalore is out. Kochi is in,” writes Stephanie Overby, Senior Editor of CIO Magazine, in an article on business process outsourcing (BPO) trends in India in a recent issue of the widely read IT journal.

As real estate prices and cost of living skyrocket in big cities and high cost of talent and infrastructure squeeze chop off chunks from profit margins, BPO companies are turning to smaller cities and towns and Kochi, Kerala’s emerging IT hub, figures at the very top of their priority destinations.

“The Smart City issue might have helped a bit,” says Joseph C. Mathew, IT Adviser to the Chief Minister of Kerala. “Why should an international infrastructure provider such as the Dubai-based TECOM come to Kochi despite some hard conditions set by the State government if not for the several pluses we have,” asks Mr. Mathew.

Talent on offer


The industry sees very good talent on offer here at a cost much lower than that in the big metros, good communication connectivity, a society quite cosmopolitan in attitude, the best of living conditions and, of course, sparkling environs. And it will not be just Kochi, or the capital city Thiruvananthapuram. The State is more of a sprawling town homogeneous all over in attributes attractive to the IT industry, unlike most other States with disconnected urban pockets in rambling landscapes of backward villages.

Experts believe that there are at least a dozen towns in the State ideal for IT companies. The Government’s IT Policy aims at developing all such towns for the industry along with Thiruvananthapuram and Kochi in a hub-and-spoke model so that the trickle down effect of prosperity too will be distributed evenly across the State. New IT parks at Palakkad, Kozhikode, Alappuzha and Kollam are already in the sprouting stage.

The IT industry employs over 30,000 professionals in the State at the moment, 17,000 of them at the Technopark in Thiruvananthapuram, and 5,000 at the Infopark in Kochi.

The State’s software exports were in the region of Rs.800 crore last year, according to the estimates of Software Technology Parks of India. “This is a gross underestimation, probably because many companies report their turnovers from their headquarters outside the State. The turnover per IT professional cannot be lower than Rs.20 lakh a year. The Technopark and the Infopark, employing more than 22,000 professionals, should by themselves be having more than Rs.4,000 crore of annual export business,” says N. Radhakrishnan Nair, Technopark Chief Executive Officer.

“We are looking at something like one lakh new IT jobs in the State in the next two years. Leading firms such as Infosys, Wipro, TCS, L&T and the Leela Group are working on building facilities here. Some of them want to set up parks as Special Economic Zones,” says IT Secretary Ajayakumar.

Sajan Pillai, Chief Operating Officer of the UST Global, which employs the largest number of IT professionals in the State, and the company’s Technopark unit chief Alexander Verghese say that the present trend will take the number of IT jobs in the State to nearly one million in the next four or five years. They base their forecast on a surmise that at least 10 per cent of the National Association of Software and Service Companies (NASSCOM) projection of IT job generation in the country during this period will be in Kerala.

Soft skills


The opportunities also throw up big challenges. The first concerns training the youth in skills beyond the ones they imbibe in the colleges to make them ‘employable’ with the necessary communication and computer skills, aptitude for IT and a ‘global attitude’ to the profession because IT is a global business.

“Finishing schools have to come up in a big way across the State to help us make the best of the opportunity. The times to come will see not just engineering graduates, but also a large number of graduates in other disciplines getting jobs in the IT sector,” says Mr. Sajan Pillai.

The curriculum will have to be revised and constantly put through fresh revisions in tune with the job market needs, he feels.

The Chief Minister’s IT Adviser feels that the government and the industry will have to show the way with right models of finishing schools and he is confident that private entrepreneurship will do the rest.

Entrepreneurship is waking up in Kerala, one can see it happening all over the State, he says. Ashokan Njarackal, a free software campaigner, is of the view that entrepreneurial skills too require nurturing.

Private players


Then there is the challenge of infrastructure and finding the resources to build it. Industry leaders suggest a string of self-contained ‘techno-cities’ in the State with good road and air connectivity.

Should it be the government’s own responsibility or should the private sector also be asked to chip in?

Ideological confusions, if any, may have to be sorted out fast. At the same time, the State has to guard against the danger of throwing the field totally open to real estate exploitation.

“The government knows the danger,” says the Chief Minister’s political secretary K.N. Balagopal.

“A joint sector company, with majority stake for the government, is being set up to facilitate investment and build IT parks all over the State. In Smart City’s case, we insisted that 70 per cent of the built-up space should be exclusively for the IT industry. Such safeguards may become necessary for other private parks too.”

On road to changes


The State is on the threshold of a change, the nature and scale of which have no precedents. The change that happened when the Gulf job market opened up in the 1970s was of a different nature altogether because a bulk of its beneficiaries belonged to the rural working class. Ultimately, it was more of a levelling process that happened in society through the Gulf boom.

In the present case, the so-called digital divide will take quite some time to vanish, notwithstanding the ‘Akshaya’ computer literacy programme of the government. Also, income divide will be a stark reality.

The emerging new section will also pressurise the system for a higher and higher share of the resources, from the government and society.

The State is entering uncharted seas. Somewhere out on the unfolding expanse, glorious promises await it; as also unknown dangers. This is the time when those who steer the ship will have to keep a very tight vigil.

http://www.hindu.com/2007/12/10/stories/2007121055190500.htm

Three new projects fuel boom in Kochi

A move by the Kerala state government to set up a Smart City at Kochi has triggered off a fresh rally in real estate prices in the central districts of Kerala, especially in and around Kochi.

The real estate and construction business in Kerala have been passing through a dull phase after new and stringent norms on registration and stamp duty were introduced some months ago.

The announcement of the Smart City project has added life to the segment recently.

The government will soon tie up with the Technology and Media Free zone Authority of Dubai to set up the Smart City, one of the largest IT infrastructure projects of India at Kakkanad, near Kochi city.

Around two years back, the UDF government had announced the project and this had led to a surge in real estate prices in Kochi and surrounding areas.

Almost all the major builders of India had acquired land at Kakkanad area and the value of land had increased by manifolds.

Thereafter, LDF had swept to power in the elections and work on the project was slowed down.

Now after a year, the project is about to take off.

The project was expected to create jobs for 90,000 professionals in the city and this would create demand for apartments.

According to major builders, around 30,000 apartments and flats would be needed in Kochi in three years.

By 2015, Kochi would need more than 100,000 plus apartments.

Three mega projects, the Vallarpadam International Container Terminal, Petronet's LNG terminal and the Smart City, were expected to lead to 200,000 jobs while related projects like the bunkering terminal, single point mooring and new hotels would add to demand for apartments.

In the last few months, land value in Kochi's Kakkanad area climbed 75 per cent.

A large number of land deals were being done in Kochi localities like Vyttila bye pass (NH 47) and the Sea Port to Airport Road.

Prices per centiare near NH 47 was Rs 20 lakh and on the Sea port -- Airport Road it was Rs 600,000 to Rs 800,000.

According to K A Mohammed Salim, managing director of Asset Homes, land prices in Kochi were lower than most other tier-II cities and hence the interest among builders.

Salim said that the construction of flats would surge in the coming years and investments to the tune of Rs 6000 -7000 crore (Rs 60 to 70 billion) would be required in the next three years.

Villas were also in demand in major towns in the average price band of Rs 50 to Rs 70 lakh (Rs 5 to 7 million) per unit.

But major builders agreed that demand for apartments would drive growth in the future with prices being in the Rs 15 -25 lakh (Rs 1.5 to Rs 2.5 million) band, affordable for professionals.

Salim said the surge in land prices could derail plans to build villas as unit prices could soon exceed Rs 1 crore (Rs 10 milion) per unit.

Demand for flats, especially from NRIs, was already high and most flats were being booked as soon as bookings opened.

Major builders were concentrating on sales in the Persian Gulf region and around 50 per cent of flats were being sold within a month of announcement of a project.

In Kochi city, around 5,000 flats were under construction at present.

Demand was so high that extension of the city outwards in all directions was inevitable.

In the north, land upto Thrissur 80km away on NH 47 was now being described as being suitable for apartments in future and land value was rising in areas like the Nedumbassery-Angamally area where the international airport was situated.

In the south, the road to Cherthala was suitable and in fact, in Cherthala, some large apartment projects were coming up.

Other areas to see development included the south-eastern suburbs of the Thripunithura-Chottanikkara and the north-western areas of Varapuzha, North Parur and Vypin Island.

The city of Kochi was at present slowly spreading to around 70 per cent of the land area of Ernakulam district as very little land was available within the city limits.

The city was already extended upto the Kalamassery and Aluva municipalities since these were areas adjacent areas of the old city.

Hectic construction was also going on the reclaimed land near Goshree bridges connecting the city with Vypin island.

The development of infrastructure projects and the new road-rail connectivity would revive the fortunes of the city and a number of big hotel projects had been announced recently.

However, the unique eco-system of the city was under threat as a major portion of the paddy fields were now being taken over and developed into flats and housing projects.

High real estate prices was likely to edge out many of the older residents of Kochi city and its suburbs to other districts.

http://www.rediff.com/money/2007/may/01kochi.htm

COCHIN(Kochi) to have global trade centre

100 storey office tower,one of the tallest towers in South Asia, the International trade and exhibition centre whose construction began in January 2008, is expected to be complete in 3 years.


Renu Rajaram
Infotech
The Board of Kerala Industrial Infrastructure Development Corporation (Kinfra) has appointed Mumbai-based Zoom Developers to provide full design consultancy services for the proposed International Exhibition and Trade Centre at Kalamasserry near Kochi. The trade centre is planned in the prestigious Kinfra Hi-tech Park cluster and is expected to be operational in three years."The hi-tech park, spread over 240 acres, includes a cluster of biotechnology, electronics, ITES, gem and jewellery parks in addition to the trade centre," said A.S. Suresh Babu, Managing Director, Kinfra.Singapore-based CPG Consultants India has been chosen by Zoom to provide full design consultancy services. The centre, being envisaged as one of international class, will be a permanent venue for trade fairs, exhibitions, conferences and other business activities."The project is coming up on BOOT basis: 90 years lease which is renewable for another 90 years. The construction work will start by the end of January 2008," said Kshitija Mandvilkar, Finance Executive, Zoom Developers.The project is coming up on 40 acres of Kinfra land at Kalamasserry, 25 km from Cochin International Airport and 26 km from the seaport. The site, proposed for the centre, is 3 km off NH-47. Cochin SEZ is within 10 km of the proposed site. The trade centre is to have world-class facilities and will be built in Kerala style of architecture, according to Kinfra officials. The exhibition hall and the convention centre are expected to have an area of 5.6 million sq. ft. The convention centre will be designed to be used as a theatre, if required.The project will also include a 5-star hotel of 31 floors providing 400 rooms, a 100-storey office tower which will be one of its kind in India, and a shopping mall spread on six floors. The trade centre is coming up in a five-storey building. Other amenities include a club house, service apartments, restaurants, ATM centres, a post office, Internet café and multilevel car parking.The project will be completed in three phases. The first will comprise the exhibition and trade centre and the food court which will be completed by October 2008. The second includes 5-star hotel and shopping mall, and the third will consist of the office tower.Kinfra, which facilitates the development of industrial infrastructure in Kerala, has made remarkable achievements in just 13 years and has catered to industry-specific infrastructure requirements by setting up a number of industrial parks, townships and zones across the state.Contact: Kerala Industrial Infrastructure Development Corporation (Kinfra), TC 31/2312, Kinfra House, Sasthamangalam P.O., Thiruvananthapuram 695010. Tel: 0471-2726585; Fax: 0471-2724773; E-mail: kinfra@vsnl.com
[December 3-9, 2007]
http://www.projectsmonitor.com/detailnews.asp?newsid=15010

Cochin needs a 100+ acre financial and business district

A separate city called The Cochin Financial and Business District should be created it should contain a brand new Cochin Stock Exchange Tower on the line on Wall Street in New York and Dalal Street in Mumbai. It should be somewhere in the interior maybe Pallikara or Choondy or Edathala in Alwaye taluk. Architects from outside should be hired to draw the plans. The district should also have a Trade Tower like the one coming up in Hyderbads proposed business district.Shaik Ahmed AliCNN-IBNPosted Monday , May 07, 2007 at 11:17Email Email Print PrintTALLER THAN THE REST: The construction of tower will start by July is likely to be ready in the next three years.Hyderabad: The historic Charminar might soon lose its status as Hyderabad's most famous structure.The state Industrial Infrastructure Corporation has given the final nod to the city's skyscraper zone, and a landmark building, to be located in a 100-acre Business District in Manchirevula near Hyderabad."In the area that the building is coming up, the minimum height of a building should be 30-storeys. The building that we are making will be 100-plus storeyed building surrounded by a series of 10-12 30-storeyed towers. It will be a compact business district like Manhattan or Nariman point," said APIIC Vice-Chairman, B PAcharya.The proposed Trade Tower will house corporates, hotels and other establishments. 22 international players participated in the recently-concluded bidding process."We have kept very stiff pre-qualification norms and 10 were finally selected in the pre-qualification round. Ultimately two parties have responded and we are going to finalise them shortly - one from Israel, one from India," said Acharya.The APIIC had initially proposed to build 60-floor twin towers. Teams were sent to study the Petronas Towers in Kuala Lumpur, Sears Towers in Chicago and high-rise buildings in Dubai.Based on their reports, a single trade tower was approved. At present, the 16-storey Babu Khan Estate, built in 1987, is the tallest commercial building in Hyderabad followed by the 13-storeyed Haj House.Since the proposed trade tower will be located in the skyscraper zone, getting clearances from the municipal and fire services authorities will be just a formality.According to the APIIC, the construction of the trade tower will start by July this year and it is likely to be ready in the next three years. http://www.ibnlive.com/news/indias-t...d/39902-3.htmlAnil on top of 100-storey tower Hyderabad, July 6: Anil Ambani’s Reliance Energy has bagged the 100-storied trade tower-cum-business district project at Manchirevula on the city outskirts. Reliance Energy quoted Rs 6.57 crores per acre while its competitor Elbit Medical Imaging, an Israeli firm, quoted Rs 6.10 crores per acre. The upset price was Rs 6 crores per acre and the project is estimated to cost Rs 5,400 crores.Noted architect Hafeez contractor also favoured the design for the tower submitted by Reliance Energy. In all, the overall marks given to Reliance were 75.40 out of 100 while Elbit got 71.29. Reliance Energy will start construction by September and will engage the services of world renowned architect Norman Foster. Company officials expressed happiness at getting the contract since the opening of financial bids coincided with the death anniversary of founder Dirubhai Ambani.The tower with 100 floors will be about 450 metres tall and will accommodate offices, hotels and malls. “The company will be given the confirmation letter in a few days,” said Mr B.P. Acharya, managing director of the Andhra Pradesh Industrial Infrastructure Corporation. “The trade tower has to be constructed in three years and the business district in five years.”APIIC put a pre-bid condition that the company which bagged the contract should first construct the trade tower in 30 acres and would be given the remaining 50 acres after that. A special purpose vehicle will be set up to execute the project in which Reliance Energy will have 66 per cent equity, Bangalore-based Sobha Developers 23 per cent and APIIC 11 per cent. http://www.deccan.com/home/homedetai...storey%20towerREL, Sobha win Rs 6,400cr project in Hyd BS Reporter / Hyderabad July 7, 2007 A consortium led by Reliance Energy has emerged as the successful bidder for the Rs 6,400 crore business district project proposed in Hyderabad by the state-owned Andhra Pradesh Industrial Infrastructure Corporation(APIIC).The project will have three modules, including a 100-plus storied tower, and is scheduled to be completed in three years. The project is expected to be completed in five years. According to an official of Reliance Energy, the business district project will have a built-up area of about 11 million square feet. This is the first major infrastructure project being taken up by the Anil Dhirubhai Ambani Group in Andhra Pradesh.Reliance Energy will hold 66% equity in the project while its joint venture partner, Sobha Developers, will hold 23% stake. The remaining 11% equity is held by APIIC towards the land component of the project. http://www.business-standard.com/com...N&autono=25195I know the ideal location for a similar project if it were to come up in Cochinhttp://www.kochi.co.in/property_info?pid=123

Why cant we have a Mini-City project too????

Tishman Speyer Properties LP, which owns New York’s famous Rockefeller Centre and Frankfurt’s MesseTurm, said it, along with ICICI Bank and Nagarjuna Construction Co, will build a $2 billion residential and commercial township for 30,000 people, spread over 400 acres near Hyderabad.It would be great something like that came somewhere in Cochin's periphery.I know an ideal property listed on the web for it.550 Acres land for sale at Irinjalakuda (Thrissur District) - Asking price - Rs.20,000/cent Property Features:6kms from Irinjalakuda Town, 15kms from NH47, 35kms from Angamaly and 40 kms from Kochi International Airport. Full of coconut trees, 6 side roads, canal with lot of water, tarred bus route road front. Suitable for commercial/residential purpose. Nearest landmarks:Irinjalakuda Suitable for: Corporates Expected price: Rs. 110 crores (Negotiable) http://www.kochi.co.in/property_info?pid=91