TCS, Microsoft spur IT boom in Guj

Ahmedabad: With the entry of IT giants like Tata Consultancy Services (TCS) and Microsoft, Gujarat is hoping for a boom in this industry.

"Earlier we were not able to attract investments because there were communal riots, the attack on the Akshardham temple and so on. Now it is happening at the Infocity," said Anupam Saxena of Creative Infocity Ltd, which holds a major stake in the IT park project promoted by the state government.

He said government policies had led to a reduction of around 40 percent in the cost of setting up IT businesses in Gujarat.

Along with Microsoft and TCS, around 40 companies are at the Infocity, which is close to the state capital Gandhinagar and was constructed in 2000.

With more IT and IT-enabled services (ITES) and business process outsource (BPO) companies coming to the IT park, Creative Infocity Ltd is building another tower at the campus besides planning to erect three more in the next few years with an investment of about Rs 35 million each.

Last week National Association for Software and Service Companies (Nasscom) president Kiran Karnik also said in a meeting here: "Gujarat has missed out in the initial round but it is not too late to pick up. Gujarat has immense talent and great entrepreneur spirit.

"Places like Bangalore and Gurgaon are nearing saturation and Gandhinagar, Ahmedabad and Vadodara are in the right time to settle on the scale."

Gujarat's realty developers say that a "reverse trend" can be noticed in the state.

"Many Gujarati youths working in IT industries outside the state are now returning to Gandhinagar and Ahmedabad," said Dipesh Sheth, a developer.

While a developer has acquired 93 acres of land at Koba for an IT park called Mindspace, other players, including DLF, L&T and Kolkata-based Infinity group, are planning to set up several more IT centres in Gujarat.

Besides, the State SEZ (special economic zone) Development Authority has approved in principle a proposal for a Rs 2-billion IT SEZ to be jointly developed by Team Pro and BRG groups near Vadodara.

According to government sources, giants like Wipro and Infosys are exploring Gujarat for business expansion.