What Makes an Area an ICT City By Dr. T.H. CHOWDARY Director: Center for Telecom Management and...
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Transcript of What Makes an Area an ICT City By Dr. T.H. CHOWDARY Director: Center for Telecom Management and...
What Makes an Area an ICT City
By Dr. T.H. CHOWDARYDirector: Center for Telecom Management and Studies
Chairman: Pragna Bharati (intellect India )Former: Chairman & Managing Director
Videsh Sanchar Nigam Limited &Information Technology Advisor,
Government of Andhra PradeshT: +91(40) 5567-1191/ 2784-6137(O) 2784-3121®
F: +91 (40) 5567-1111, [email protected]
[email protected] @ Andhra Chamber of Commerce,
Vijayawada: 14 Oct 2006
THC_CTMS S319_Oct 2006 2
World’s Attention to India
• The Economist (UK), June, 2006• “Can India Fly” – 14 page supplement• “…India is producing far more world class
companies than China…”• Time (USA) June 26, 2006• Cover page…”…trying to find out why the
world’s biggest democracy is the next great economic power and what it means for America”
THC_CTMS S319_Oct 2006 3
World’s Attention to India
• Foreign Affairs (USA) (July-Aug 2006)• “India is now the fourth largest economy and soon
it will surpass Japan to become the third largest…rather than rising with the help of the state, India is in many ways rising despite the state…”
• Of the Fortune companies 125 now have Research & Development bases in India, a testament to its human capital.”
THC_CTMS S319_Oct 2006 4
Agri Industry Service
Developed <5% 25 70
Developing 30 to 40 20 to 25 35 to 50
India 21 24 55
Content of GDP (Figs. in %)
THC_CTMS S319_Oct 2006 5
Software Export Industry
734 1,0851,750
2,6503,900
5,5006,800
8,000
10,000
12,500
16,560
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-'01
2001-02
2002-03
2003-04
2004-05
2005-06
India as ICT Power: (1)
THC_CTMS S319_Oct 2006 6
Employment in Indian IT sector*,’000
0200400600800
10001200140016001800
2000 '01 '02 '03+ '04+
Call-centers (ITES) Software Multinational operations
(* Years ending March; + Estimate@ break-up: NA)
2 mln@
‘06
THC_CTMS S319_Oct 2006 7
A.P’s Software and ITES Companies
• In 2004-2005 Exports surged by 64.5%
Year 1996 2004 2005 2006 2007
Volume (in Rs. Cr. ) 65 5,025 8,270 12,521 17,000 of Exports
Hyderabad : about 1200 companiesVisakhapatnam : Units 37; Exports Rs. 70crVijayawada : Units 13; Exports Rs. 24 Cr• Number of direct employees 1,60,000 adding 30,000 to 40,000 per
year
THC_CTMS S319_Oct 2006 8
PROSPECT- I T ENABLED / CREATED SERVICES & EMPLOYMENT (INDIA)
GROSS WORLD PRODUCT IN THE YEAR 2010 US $ 40 TCONTRIBUTION FROM SERVICES (60%) OF GWP US $ 24 TINDIA'S SHARE @ 10% US $ 2.4 TEMOLUMENTS COMPONENT (15% TO 50%) US $ 360 TO US $ 1200 bEMOLUMENTS/EMPLOYEE/YEAR US $ 5000NO OF JOBS (360/1200) b = 72 to 240 million 5 K
THC_CTMS S319_Oct 2006 9
Characteristics of (Trade in) Services
• Created in one place/country• Consumed anywhere else• Delivered over telecom high-ways• Information/knowledge-intensive• Storage, Processing & Exchange• Knowledge workers• Exemplary Service economies
– Singapore– Ireland– Hong Kong
THC_CTMS S319_Oct 2006 10
India’s Tragedy
1951 2006
Contribution of Agriculture to GDP
67% <20%
Rural Population 85% 72%
Labour dependent upon agriculture
70% 65%
THC_CTMS S319_Oct 2006 11
In Rural India
• Literacy (62%) & Education ( About 15%)
• Per capita income
All India Urban Rural
Rs. 30,000Rs. 56,000 Rs. 8000
THC_CTMS S319_Oct 2006 12
Unemployment
• Unemployed Graduates : 52 lakhs• Unemployed persons : 420 lakhs• Population growing/yr : @180 lakhs• Max. jobs created/yr : 100 lakhs• Rural & Illiterates: unskilled, unemployable in
industries, increasingly becoming automated/mechanized
• Diploma/Tradesmen to Engineers ratio Developed India 5.0 1.0
THC_CTMS S319_Oct 2006 13
India is Graduating Every Year
• All varieties : 30 lakhs (3.5l in AP)
• Engineers : 4,50,000 (80 to 100,000)
• MBAs : 80,000 (15,000)
• MCAs : 80,000 (12,000)
• Employability in Tier #1 companies : 2% to 10%• Fig. In ( ) relate to AP
THC_CTMS S319_Oct 2006 14
Characteristics of Indian IT Companies
• Born mostly in mid 1990s and so escaped socialism i.e nationalisation
• Born and thriving without government help and inspite of obstruction by government ( DOT)
• NRI inspiration – Silicon Valley Success
• Indigenous entrepreneurship by foreign-educated, nationalist young men – Infosys, Satyam, Wipro, Infotech …
• Foreign Markets – Indian talent who built confidence and trust-levels
• Pioneers- Texas Investments: Bangalore “Security” bogey
• Satyam: BPO for John Deere. “Little India” Moline (Illinois) USA
• First Satellite Link for Indian BPO for Satyam
THC_CTMS S319_Oct 2006 15
How Does a City Qualify
Hard Infrastructure• Broad-band telecom links to world’s I.T markets
(USA, EU,Japan, Australia, Brazil)• Quality electrical power• Modern intelligent buildings; centrally a/conditioned, UPS; preferably in a cluster
(IT Park like Cyberabad in Hyderabad)• Served by International Airlines• Copious water supply• Broad, unclogged roadways to City Center
THC_CTMS S319_Oct 2006 16
Soft Infrastructure (1/2)
Culture is more important than infrastructure -Nicholas Negroponte
Digital & Internet Guru; MIIT Media Lab
• Engineering colleges, Polytechnics in profusion• University & Research Institutes• Good and Modern Housing Estates; Hostels for working men/women• Star-Hotels for global Business Executives• International Standard Schools ( LKG to High Secondary)• Hospitals with all specialties • Entertainment & tourism facilities• Banks ( ATMs, Internet Banking….) • Taxi Services/ Group Transport
THC_CTMS S319_Oct 2006 17
Soft Infrastructure (2/2)
• Financial Services (Investment, Stocks & Shares)• Chartered Accountants ( GAP qualified)• Legal Services• Marriage Bureaux / Counselling• Shopping Malls with all sorts of goods from all
over the world• Real estate Services ( Investment, Sale/resale…)
THC_CTMS S319_Oct 2006 18
Vijayawada STP
• Operational since Y2001 in the ITI premises with a VSAT & 64 KBPS
• Has now 4MBPS on fiber optic cable can go to 8 MBPS at 2 Hr notice
• Government ear-marked 50 acres near airport• RFP for equity to develop land and building (Kakinada; moved forward; Collectorate bldg.
12,000 ft2; 2 companies from Chennai wish to move)
THC_CTMS S319_Oct 2006 19
Most Importantly(1/2)
• A government which is “evangelist” about education, talent, entrepreneurship; out-reaching; facilitative; friendly seductive
• A local body ( Municipal Corporation) which is caring, responsive and not greedy; providing civic services promptly
• Friendly, service-oriented utilities : telephone, electricity,water-supply,cooking gas, local transport
THC_CTMS S319_Oct 2006 20
Most Importantly (2/2)
• Absence of Inspector-raj– Health inspector, factory inspector, Excise &
Sales-tax and income tax inspectors, property tax inspector
– Labour ( women working at night) Inspector; Welfare Inspector
– Revenue Inspector
(Agri-land for “industrial” use)
THC_CTMS S319_Oct 2006 21
Dhanyawad:Thank You