Rapid industrialisation and partial privatisation of the telecommunication industry has fuelled fresh blood into the Koramangala-based IT companies. The industry insiders opined that the new developments have helped the industry to log at least 13-15 percent growth in second quarter of the current fiscal.
T Umakanth Rao, director, Zarlina Systems Private Limited said, “In last two-three years, Koramangala has witnessed a rapid industrialisation along with partial privatisation in the telecom sector. IT being an integral part of these two major industries, has also witnessed a growth of around 13-15 percent in the second quarter of the current fiscal as a trickle-down effect.”
Rao went on to add that if the way the US and EU economy have shown the recovery, the growth rate in the IT industry may go beyond the 20 percent levels in the quarters to come in the current fiscal. He said that slowdown recovery among the EU nations and the US has helped industrialisation in the respective countries as well.
Such economic developments in first world nations help outsourcing business from these nations in Koramangala. Asked about the benefit of industrial growth in first world economies, and its benefit to the Koramangala-based BPO industry; T Umakanth Rao of Zarlina Systems Private Limited said, “In last three months, rate of IT outsourcing in Koramangala has gone up by around 8-10 percent.”
Naved Ahmed, director, MN Associates said, “Privatisation in the telecom sector is one of the major drivers in IT growth. Since, telecom sector requires lots of IT services like software programming, data processing, data storage solutions etc. Telecom sector has fuelled demand for the IT solutions in the locale and hence are cashing in on this opportunity.” On telecom privatisation helping the IT industry of Koramangala, he said that demand for IT solutions in the telecom sector has gone up by more than 30 percent in last six months.
Sushanth K Nair, proprietor, Innova Team Software, a Koramangala-based IT company which has base in New York as well said, “These days special economic zone (SEZ) has become a modern trend of executing organised business. Since, the SEZ helps IT companies to avail tax benefits; it is also a major reason for IT companies growing healthy these days.”
TRICKLE DOWN GROWTH
Nair further said that generally, IT companies run on low operation cost if compared to the industries fuelling its business these days. Hence, IT companies are growing faster in comparison to the industries which are outsourcing business to the Koramangala-based IT industry. He further added, “For rapid industrialisation, a manufacturer requires huge amount of money, however, for the IT companies need not to put much money to provide its services to the concerned company. They already have a resource readily available to aid such rapid industrialisation in the region.”
V Prasad, director, R&B Software Solutions, a Koramangala-based IT company said, “This growth in the Koramangala IT industry is expected to boost the IT exports also. He said that NASSCOM has predicted the Indian IT exports to be in the range of 15 percent. However, if we look at the Bangalore and Koramangala, the exports would be in the range of 20 percent as the area is considered IT hub in India.”
Commenting on IT growth translating into the job opportunities; Prasad said, “The IT and ITeS (information technology enabled services) sector has generated massive employment in the past and continues the trend of providing jobs. With online shopping, social media and cloud computing flourishing more than ever before in the locale, there is great demand for IT professionals in e-commerce and business to consumer firms, especially in Koramangala.” He said it fuelled IT hiring by around 5 percent in last quarter.