IT sector in Kerala eyeing Brazil, S.Africa

Having tapped into the emerging market in Europe, the IT industry in Kerala is all set to extend its footprint to Brazil and South Africa.

The Group of Technology Companies (GTech), the industry body of software companies in Kerala, is spearheading an initiative to scout the Latin American and African market for fresh business opportunities and work out partnership deals with compatible enterprises in the region.

Last week, a GTech delegation comprising representatives of 13 small and medium enterprises (SMEs) returned from a successful business trip to Germany and the Netherlands with a handful of deals. The team held several rounds of discussions with business leaders in Munich, Nuremberg, Stuttgart, Eindhoven and Amsterdam.

“What struck us most was the upbeat feeling about Kerala in most of the places we visited”, said Syed Ibrahim, office bearer of GTech. Talking to The Hindu here on Wednesday, Mr.Ibrahim who also represents the Indo German Chamber of Commerce said, “Germany was always seen as a tough nut to crack for the IT sector in Kerala, basically because the traditional business methods in that country are different from that in the US. Most small and medium enterprises are family- held and hence partnerships are marked by long gestation periods”.

In March, GTech took up a campaign to create awareness about the emerging business opportunities in Germany. “That initiative paid off and resulted in the successful European tour by the delegation from Kerala. The Indo German Chamber of Commerce and Invest in Bavaria chipped in to open up investment opportunities for us”, Mr.Ibrahim said.

The Chamber, he added, would have a key role in improving bilateral trade between Germany and India from the current 32 billion Euros to 50 billion Euros by 2050. “Efforts are on by the Chamber to touch base with new markets and potential customers in the south western region comprising Kerala and Karnataka”.

He said the `market connect’ strategy to link SMEs in Kerala and Germany would reap rich dividends for the state. “It is upto the Government of Kerala to utilise the opportunity well”.

Binu Sankar, CEO, GTech said most of the members of the delegation who were travelling to Germany for the first time, were taken aback by the warm reception. “The German hosts had gone out of their way to receive us and organise networking sessions”, he said.

“While SMEs in Germany see China as a competitive entity, they are comfortable doing business with us because of the compatibility in terms of culture, transparency of operations and patience in doing business. It has opened up the possibility of a long-lasting relationship”, Mr.Ibrahim said.

Suresh V. P, one of the members of the GTech delegation who struck a deal with an Amsterdam- based company to develop applications for smartphones, said mobility- based solutions offered good potential for the IT sector in Kerala to forge links with European partners, considering the high penetration of smartphones. Mr.Suresh, who is Executive Director of Experion, a Technopark-based firm, also closed a deal with the Danish army to develop mobile applications for a fitness- based training module.

While Zesty, another Technopark- based company inked a pact with two firms, one each in Germany and the Netherlands, three other members of the GTech delegation are expected to finalise agreements soon in areas like e- learning, social networking and mobile applications.

Thriving in Europe, GTECH eyes Africa, Latin America next

After unlocking virgin SME markets in continental Europe, the Group of Technology Companies (GTECH), a professional grouping representing the SME sector in Kerala, is toying with the African and Latin American shores.

In the bargain, the small-scale technology sector in the State may be now emerging as the bulwark of new technology alliances and collaborations with compatible entities in the developed West and developing mid- and Far-West.

German visit

A GTECH delegation representing 13 SME companies has just had a fruitful outing to Germany and the Netherlands in the past week, says Mr Syed Ibrahim, office-bearer of GTCH and who represents Kerala on the Indo-German Chamber of Commerce.

With the establishment of a new German Consulate-General's Office in Bangalore, a southwestern region of the Chamber, comprising the states of Kerala and Karnataka, has been carved out for focused activities in South India.

According to Mr Ibrahim, the Chamber would have a huge role to play in boosting trade relations between Germany and India from the current level of €32 billion to €50 billion by 2050.

The southwestern region of the Chamber accounts for 16.7 per cent of the total FDI coming into the country, most of which is now directed into Bangalore.

Claming share

“We would like to claim a share of the cake to ourselves in Kerala,” Mr Ibrahim said, adding that the SME connectivity between Kerala and peers in Germany would be an ideal conduit to direct some of the business.

The German hosts had gone out of their way to receive the GTECH delegation and were eager to have back-to-back networking sessions in Munich, Stuttgart and Nuremberg. It was no different in both Eindhoven and Amsterdam either, Mr Ibrahim said.

“The German Chamber as also the GTECH are upbeat on the prospects. It is up to the State Government to make most of the emerging business scenario,” he added.

GTECH would now act as the one-stop destination in Kerala in regard to foreign companies looking for support in consummating tie-ups, according to Mr Binu Sankar, Chief Executive Officer.

Potential partner

Already, Kerala has emerged as a potential partner for SME businesses in Scandinavia and the rest of western European countries thanks to exploratory visits taken up by earlier GTEC delegations.

There is a major SME presence in German trade and business, and most are family owned, Mr Ibrahim said.

The fact that Indian companies are comparatively less obsessive about intellectual property rights and the lax IP regime here may, by default, have acted as rallying points for the mostly family-owned German counterparts.

In fact, this may have helped Kerala technology companies earn the Germans' vote of confidence, according to Mr Suresh V. P., Executive Director, Experion, a Technopark-based player in the mobility space.

Striking rich

A member of the GTECH delegation, Experion struck it rich during the visit, closing deals with an Amsterdam-based company and later with the Danish Army for mobility-based solutions.

Social networking solutions and the constantly evolving ‘app-ortunities' in the I-phone and Android markets are enough to ensure a constant pipeline of business for the SME sector in India, according to Mr Suresh.