IT PARKS: Boom Time For Solution Providers

With India emerging as the global IT hub, constructions of Technology Parks
are on a rise. This is an excellent opportunity for network integrators and
systems integrators to gain more business, as these parks require end-to-end
solutions. These players should have strong domain expertise, business knowledge
and ability to undertake long-term projects.

India is pouring money into technology parks to lure the native talent and
produce world-class tech companies" - US Hi-tech trade body. Yes indeed!
India has been pouring huge money into the IT sector, seeing its potential
growth.

Simultaneously, other sectors are also booming up along with IT here. The
number of IT companies coming to India has been on the rise, resulting in
increased job opportunities. It also has increased the demand for improved
infrastructure facilities here. The real estate or construction industry, in
line with the IT industry is also growing steadily.

Ever since economic liberalization took place in 1991, IT development in
India has seen a significant growth. The formation of Software Technology Parks
of India (STPI) in 1991 by the Department of Information and Communication has
played a vital role in bringing the information technology revolution in India.

Today, every Indian state has erected its own IT infrastructure facility with
the help of the Software Technology Parks of India (STPI). Besides the
government owned infrastructure facilities, private parks are on their way in
India, thus bringing in opportunities for IT-related players, such as networking
specialists, solution providers, systems integrators and others.

Private IT Parks

India is now the IT hub, globally. With an increasing number of companies
approaching India, there is a greater demand of world-class infrastructure
facilities. The government too, on its part has been encouraging private players
for constructing world-class facilities and thereby giving an opportunity to
private investors, who wish to establish their architecture facility.

The
success of existing IT parks in India has led to the increase in demand for
building more IT parks. Around $6.3 billion is being invested in new parks by
both the private and government sector. Today India has 11 software technology
parks created under the government-led initiative. Take for instance, Tamil Nadu,
besides the Tidel Park, Mahindra IT Park and Tidel IT Park, nearly 55 IT parks
are expected to come up in few years, which includes, Tamil Nadu Industrial
Development Corporation-Ascendas ventured International Tech Park, STPI Chennai
promoted park and a host of others.

Role Of NIs And SIs

Network integrators (NI) play a key role in providing connectivity by
building the required backbone infrastructure. Currently, NIs in India are
focusing on providing end-to-end solutions to corporate clients. On the other
hand, Systems Integrators' (SI) role is to integrate applications and
management systems, offer turnkey solutions and provide technical support to NIs.

The players, however have strong domain expertise, business knowledge and
ability to undertake long-term projects. With the growth of IT parks, these
groups are expected to be on an advantageous position.

"IT parks are on the increase today. With the entry of private players,
there seem to be many opportunities for SIs. Though not in a big way, the future
for SIs is expected to be benefited in near future," said SR Nair of Team
Frontline.

"SIs act as one stop-shop for corporates, who wish to invest in India.
Right from the initial cabling to onsite support and maintenance, an SI provides
an integrated solution, He provides passive equipments like chords and panels as
hardware to clients who wish to establish their new facility," said Navin
Nagpal of Infonet Solutions.

However, real estate giants, who have ventured into constructing new model IT
parks, inform that only basic facilities like telecom and Internet connectivity
are setup after consultation with company advisors. The companies themselves
look after other specifications such as networking and system integration areas,
with the help of the small or big players.

How It Works?

In case of government parks, most of the process is done through bidding.
However, in case of private players, consultants select players or have their
own group of networking vendor. For example, in Kinfra Park, which is coming up
in Cochin, no bidding has taken place and the Kerala Industrial Development
Corporation has outsourced the networking part to themselves, who have
sub-contracted their work to a third party. Therefore, in general, third party,
networking and systems integration outsourcing is yet to come up.

But, as far as B- and C- class cities are concerned, NIs and SIs are expected
to gear up. Cities like Coimbatore, Cochin, Jaipur and others are emerging as IT
potential cities, besides metros. "With the emergence of parks in other
cities, it is expected to benefit solution providers. And, with not many big
players, the current players in these cities should be better positioned to get
their piece of bread and butter," observed

SR Nair.

Recently, Infonet Solutions of Chennai had taken up the networking process
for the Muthoot IT Park, Cochin. However, the cost factor would be determined
based on the area of the park and requirements of corporates who are
establishing their facilities in such parks.

The Future

B- and C- cities. It's these cities, which have become the area of
concentration of the government and private players too. The government's
initiative to construct more IT parks, has been an encouraging factor for the
networking and system integrators.

The entry of private parks is expected to benefit them. And so, solution
providers, gear up and get ready for the competition in front of you.

VIDYALAKSHMI

CyberMedia News

UPCOMING IT PARKS IN METROS AND MINI-METROS