Bahrain beckons IT Cos from Kerala

Bahrain, one of the fast growing economies significant to global firms in the Gulf market is beckoning IT companies from Kerala to set up shop there as a huge market opportunity exits for these companies. This was the highlight of a session on Investment and Market Opportunities in Bahrain organised in Technopark last week by the Group of Technology Companies in Kerala (GTech) in partnership with the Economic Development Board (EDB), Bahrain and Technopark.

The key speaker for the event was Ms. Dharmi Magdani, Country Manager - India, EDB Bahrain. EDB aims to enhance Bahrain’s economy by developing an economic growth strategy, enhancing the business environment through reforms, and promoting investment.

Bahrain offers easy and liberal visa policies along with the most liberal tax regime in the Gulf with no corporate income tax, no personal income tax and no wealth tax or tax on capital gains among other reliefs. Companies are allowed 100% foreign ownership with no ‘free zone’ restrictions. The country has an advanced legal environment based on British Common Law System. Bahrain offers a cost efficient business base and also the most educated, skilled workforce in the Gulf.

According to Binu Sankar, CEO, GTech, “There is immense opportunity for Kerala Companies in the areas of e-governance, Tourism and IT Training. Two to three companies might set up a representative office in Bahrain soon.”

According to Gartner, the Information and Communication Technology (ICT) Market in Bahrain is expected to reach $ 375 million by this year which is driven by products and services from the Government and the Private sector.

Around 23 companies participated in this session chaired by S Rama Rao, former President, GTech. Mervin Alexander, CEO, Technopark and Anoop P Ambika, Secretary, GTech were among those present.

Do not reduce width of highways: GTECH

Thiruvananthapuram: The Group of Technology Companies (GTECH), a strategic grouping of software companies in the State, has proposed that Kerala use Central funds to compensate and rehabilitate the families that would be displaced for widening the National Highways to 45 metres.

A pressnote issued by GTECH here on Thursday said that reducing the width of the NHs would not be in the long-term interest of the State or its citizens. The National Highways Authority of India (NHAI) has approved the expansion of about 700 kms of highways, at an estimated investment of Rs.10,000 crore, over a 30-month period. However, politicians in Kerala, cutting across party lines, insist that the width of the highway should not exceed 30 m (as against the NHAI standard of 60 m), citing the impact of land acquisition on the affected people. This has put the entire project at risk and the State could lose the approved funding and a project vital to its needs.

Arguments

“Whilst rehabilitation is the most important aspect that the State government should focus on, there are also a lot of factually incorrect arguments on the impact of the expansions. The total number of people that will be affected by the land acquisition will be less than 50,000, according to the study conducted by NHAI, whereas those against the highway expansion claim that it is 25 lakh. The good thing is that there are plenty of funds already available from the Central government for acquiring land at even 2.5 times the market price,” said V.K. Mathews, president, GTECH.

Paradox

It was unfortunate and, in a way, paradoxical that when the whole country was asking for more funds for building more transportation infrastructure, in Kerala, the only topic on which both the government and the Opposition coming united was to block the infrastructure development, he said.

“What is required is a mass awareness programme to bring out the advantages of 45-m NHs to the citizenry of the State,” Anoop Ambika, secretary, GTECH said.

Need for vision

The Trivandrum Residents Apex Council (TRAC) has also opposed the all party move to reduce the proposed width of the NH road corridors and do away with the BOT route.

A pressnote quoting TRAC president Ramakrishnan Nair and secretary K.T. Roy said road development should be finalised with a long-term vision covering 20 to 30 years. “Considering the increase in vehicle density, 30 m width would be inadequate. A median of 5-m width will be needed to accommodate concrete pillars for a flyover needed for future development.”

GTech: From Technopark to Technology Companies

Tvm: GTech, the Group of Technopark Companies is undergoing a transformation from its present form to the Group of Technology Companies. This was announced by V K Mathews, President, GTech today. GTech will thus be a strategic grouping of IT & ITeS Companies from the Government IT Parks in Kerala.

The Group of Technopark Companies was founded in 2000 by the CEO’s of the companies in Technopark as a non-profit organisation. Today majority of the companies in Technopark are members of GTech. But in the last ten years the Kerala IT industry has grown beyond Technopark and in the last Annual General Meeting of GTech held in February 2010, it was decided to broaden the network and look beyond Technopark.

Briefing the media, VK said that GTech is equivalent to Nasscom in Kerala. GTech wants to be seen as an organisation complimenting and partnering with the Government and its agencies to promote not just Technopark but the entire Kerala as a preferred IT destination to companies around the world. At the same time they also want to limit their activities to companies which are based in Government owned IT Parks, namely Infopark, Cyberpark and the several new smaller IT parks at Kundara, Chertalla or Ambalapuzha. They are also expecting the companies from Technolodges to join them, as and when they start.

The main focus area of GTech remains to promote the cause of the community of IT companies in Kerala. It’s the forum where matters of common interest could be discussed and resolved while articulating the consensual views of its members to the Government, regulatory agencies, media, the general public and foreign community.

One of the new initiatives planned is be to promote the small and medium companies in the IT parks. The bigger companies can mentor these SMEs. GTech also want to provide a platform for these companies to showcase themselves so as to get VC funding or to do overseas promotion.

Another initiative is the tie-up with several professional bodies outside India which can benefit the members. The Internship programme for Management Students from Singapore is a step in this direction.

GTech is also planning to increase their activities under Corporate Social Responsibility. The conference on 'Re-Engineering the Kerala Agriculture Sector: Information and Communication Technologies in Agriculture' in January 2010 is an example of this initiative. They brought bring 55 farmers from different parts of Kerala to attend this one day conference in Technopark.

GTech now has a new team steering the activities for the next two years with V K Mathews, Chairman & CEO, IBS Group as the new President and K Nanadakumar, President & CEO, SunTec Business Solutions as the Vice President. Anoop P Ambika, CEO, Kreara solutions and Syed Ibrahim, MD, Palnar Transmedia is the Secretary and Treasurer respectively. They will have a new road map to make GTech as a catalyst in promoting and positioning Brand Kerala. They want to leverage on the global connections and the vast expertise of Mathews and Nandakumar, especially to benefit the Small and Medium companies and help them set new benchmarks.

Anil Philip