Report of the Kerala IT delegation visit to Denmark and Sweden (9th May to 13th May 2011)

Kerala IT in partnership with Group of Technology Companies (GTech) has undertaken a visit to Denmark and Sweden from 9^th to 13^th of May 2011 as part of a Market Connect Strategy. The key objective of the delegation was to provide the Kerala IT companies an exposure to the Nordic ICT market and provide networking opportunities with the Nordic companies and agencies and explore business opportunities. 7 companies participated in the delegation and the delegation was led by Ms. Ishita Roy IAS, Director, Kerala State IT Mission and Mr. Mervin Alexander, CEO, Technopark

The key take away from the delegation were the following

a. One to one meetings with potential business partners

b. Networking meetings with business and government organizations

c. Promoting the Kerala IT Industry and the Technology Parks.

d. Business relationships with the Trade and investment agencies of Denmark and Sweden

The delegation visited Copenhagen in Denmark and Lund, Stockholm and Gothenburg in Sweden. The visit was organized by Kerala IT in partnership with GTech and Invest in Denmark and Invest in Sweden.

The delegation on the first leg of the journey in Denmark participated in an interactive meeting with the Invest in Denmark officials on strengthening partnerships between Kerala and Danish IT Industry in Copenhagen. The meeting was followed by a match making programme which was attended by 15 ICT companies of Denmark. Experion Global, the Technopark based company signed two major contracts to develop mobile applications for the Danish market. The companies who were part of the delegation made inroads into verticals like Life sciences, Clean Technology, Renewable Energy and Smart Grid applications. The companies also met up with potential partners through one to one meetings and a solid foundation has been laid to tap the Nordic ICT market. The market size is 12 billion and is growing at a CAGR of 7%.

The delegation also visited the L&T Infotech campus to understand the marketing strategies used by Indian companies to tap the Nordic market. The delegation also had an interaction with the officials of the Oresund IT Park and the Kerala IT delegation extended an invitation to the Oresund IT Park officials and the companies to visit Kerala. The delegation also called upon the Indian Ambassador to Denmark Shri Ashok Kumar Attri.

The delegation later travelled to Lund which is the science and research hub of Sweden. The delegation participated in the networking meetings organized by Invest in Skane. 10 companies from Lund participated in the meetings. Discussion on strengthening the research collaboration between companies from Kerala and Lund was discussed. The delegation later visited Ideon Science Park and interacted with the companies. Ideon Science Park has a close academia- Government- Industry partnership where cutting edge technologies in the field of Health care, Energy and telecommunication are developed.

The delegation then travelled to Stockholm for a networking meeting organized by Invest in Sweden in partnership with TiE Nordic and Swedish India Business council. Around 22 Entrepreneurs, CEO’s and academicians were present for the meeting. Experion Global, Kreara Solutions, Ushus Technologies and Waybeo Technologies, the companies from Technopark held one to one meeting with partners. Kerala IT delegation was able to position Kerala as a potential investment destination for the IT/ITES industry.

The delegation later visited Invest in Sweden office and held strategic discussion with the senior management on strengthening the IT relations between Kerala and Sweden. Invest in Sweden promised to speak about Kerala and its opportunities to the IT Industry in Sweden. The delegation later called on the Indian Ambassador to Sweden Shri Ashok Sajjanhar. The ambassador also promised to provide support to the Kerala IT entrepreneurs to locate suitable business opportunity in Sweden. The delegation later participated in a networking meeting organized by Computer society of Sweden and Delphi law firm.

The delegation finally visited Gothenburg and attended a networking meeting organized by the business region of Gothenburg, the local Government agency promoting trade relations. 12 companies from Gothenburg participated in the networking meeting. The delegation later visited Lindholmen Science Park and interacted with the officials followed by a visit to the various facilities in the park. The delegation also visited the Biotech center in Gothenburg.

The visit of the Kerala IT delegation aroused considerable interest among the business community in Denmark and Sweden. Kerala IT delegation is the first major delegation from India visiting the region for business opportunities. Kerala companies would be able to penetrate the Nordic region as this is one of the most outward looking economies in Europe with less discomfort in the concept of offshoring. The actual presence of a small number of IT companies from India portrays that the market in unexplored.

The other factors that favors the region include high IT adoption, easy acceptance of English and large public spending on IT. The Nordic region have the best business environment with the most flexible and liberal Government policies.

Almost half the GDP of Denmark and Sweden is contributed by small companies, mostly family-owned businesses with 15 to 30 employees. It is a challenge for such firms to deal with large Indian companies operating from the metros. These firms would feel more comfortable working with small companies in Kerala. With a large number of small firms in the IT sector, Kerala offers a matching ecosystem for investment and collaborative research. These sorts of collaborations between Kerala and Nordic companies would eventually lead to large investments flowing from the Nordics to Kerala. Such sorts of engagement with the Nordics need to be followed up to leverage the full potential for the benefit of the Kerala IT Industry.

These are the follow up activities being planned

a. Invitation to the Danish and Swedish Ambassadors to India to visit Kerala and Technopark

b. Invitation for the IT companies from Denmark and Sweden to visit Kerala and the technology parks

c. Repeat visit of the Kerala IT delegation to Denmark and Sweden next year

d. Fostering partnerships between the Kerala IT Industry and the Universities in the Nordics.

e. To work with the Governments of Finland and Norway to facilitate a strategic relationship.