City

IT’s happening: 20 firms to expand here

Renjini Liza Varghese

Posted On Monday, August 10, 2009 at 04:51:59 AM

File pic of Wipro office in Hinjewadi

The slow down, President Obama’s ‘Bangalore to Baffalo’ statement and industries hit by recession around the world all put together gives the impression that companies have stalled expansion plans completely.

However, data available from Software Technology Parks of India (STPI), Maharashtra tells a different story.

Twenty companies are looking at expanding in Pune this year. This number clearly says it is business as usual here in city’s IT sector.

“It is a mix of downsizing and expansion in Pune city. There are twenty companies which have applied for expansion with us.

To name some, Cap Gemini, PTC, Tata technologies, Honeywell and Persistent,” said Dr S K Agarwal, director, STPI Maharashtra.

“We are seeing mid size companies going ahead with expansion plans. There are also delays in the projects announced by the companies.

Considering the slow down, there is an extension of one year given to those companies which are coming up in the SEZ. But now, the indication is that business coming back on track,” he added.

There was a concern when American President Barack Obama made the statement where it was implied taking away tax rebate to those companies which are taking away business from the US.

The analysis was, it may have an effect on Indian IT industry which is more a service industry.

However, Agarwal feels, “Work will continue to get out-sourced as it is an economical compulsion than a political one.

Companies will look at making the balance sheet right at the current scenario rather than looking at sticking on to the home land.”

Pune, according to STPI, is still a hot destination for IT companies. There are a total of 700 IT companies in the city. The IT export figure of Maharashtra region stands at Rs 42,000 crore, out of which Pune’s contribution is Rs 25,000 crore.

Barring Pune, IT companies are looking at expanding in interiors of Maharashtra viz, Nasik, Aurangabad, Nagpur and Kolhapur.

There are a few companies already in these areas. “Companies are looking at these options as it is financially more viable for them.

It is not the cost effectiveness alone attracting the companies to these areas, but the quality of service as well.

Also, availability of space is more than in cities like Pune. So those companies which fall under the small and medium enterprises (SME) category move to these places.

Bigger companies are also present in these places,” pointed out Agarwal. STPI at this point is looking at supporting the SME IT companies as they feel the potential for expansion lies with these companies.

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