Savings Center Emerges in Bangalore

A survey conducted by KPMG and Nasscomm shows that ITES customers were more attracted to a place if there was a proactive government who had the ability and willingness to facilitate funds. The city is the capital of the state of Karnataka and ever since Bangalore began to show potential for being an IT hub, the state government has gone all the way to push it to the top. Bangalore scored over all other Indian cities in the survey in terms of human resources, policy support and nature of work.

Encouragement

Software Technology Parks of India , Bangalore is a society under the Ministry of Information Technology, Government of India. Companies registered under the Software Technology Park method get some profits. They are:

1. Duty free imports

2. Custom bonding and export certification provided at a single point

3. 100% foreign equity allowed

4. Dedicated data communication links

5. Corporate income tax exemption up to 90%

Infrastructure and Telecom Facilities - Some suggestions for progress:

Services of Telecom

The entire state is networked via Optic Fibre Cables(OFC) by the state run BSNL as well as private companies like Bharthi, TATA, VSNL and Reliance. There are wide range of choices in the telecom sector. Bangalore is connected to the major submarine cables cables viz., India-UAE ; SEA-ME-WE-2 ; FLAG ; SEA-ME-WE-3 through Mumbai ; SAFE and SEA-ME-WE-3 through Cochin and i2i SINGTEL through Chennai which is a joint Televenture of Bharati Telecom. The i2i submarine cable has 8.6 terra byte capacities. There is also excellent International bandwidth via satellite. STPI Bangalore accounts for 45% of the total STPI revenues in India. The STPI, Bangalore, provides more than 1050 IT companies, who are its customers, with Individual Satellite Connectivity.

Airport

International traffic is expected to constitute about 1 million passengers out of a total of 4 million passengers projected to use the airport. The government hopes that this will become the regional hub for Asia and generate 1000 jobs per million passengers. Bangalore has more than 1000 technology firms. With the large volumes of international traffic to the city, the construction of a $245 million, 4,300 acre international airport is underway. It will be able to handle 4-4.5 million passengers and 130,000 tons of cargo.

Software Parks

The International Technology Park, Electronics City for the electronics industry, the Export Promotion Industrial Park for export oriented businesses, and the IT Corridor project which will cater to knowledge based industries, are all designed as self sufficient units with excellent infrastructure and state of the art facilities. The number of companies flocking to Bangalore is on the rise. Observing this increase, the government decided to create spaces which would help to cut down on travel time and reduce the strain on the infrastructure in the city.

The Expansion of the Technological center

In 1999, STPI established earth stations in Mysore and Manipal. In 2002, a software technology park was inaugurated at Hubli. Non metro cities like Mangalore, Hubli, Mysore, and Gulbarga have great potential as they have excellent educational institutions, good connectivity and infrastructure. Bangalore is home to a thriving IT industry, but the state government has decided to encourage activity in other parts of Karnataka as well.

Value support

A large amount of funds is put aside for technological up gradation. Also SMEs in the BPO sector are urged to obtain ISO 9000, ISO 14000, and similar international certifications to promote quality. The state government constantly encourages the development of Small and Medium Enterprises(SMEs). The government provides assistance by meeting 50 percent of the cost of obtaining such certification, subject to a ceiling of Rs 75,000 per industry. It will help to improve the quality of outsourcing and to increase the investment.

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