Business Today Net Special

Bhubhaneshwar: A New IT Paradise

Guess where the IT majors are headed for next. It's Bhubhaneshwar, India's newest hi-tech wannabe.

By Ashutosh Sinha

"At all places where the eye rests, and also at where the eye doesn't, the busy chisel of the artist has worked incessantly," once said Rabindranath Tagore, referring to the numerous temples that dot Orissa's capital city. While the temples remain a big reason why people travel to Bhubaneshwar--meaning the abode of God--there are new kinds of hi-tech artists who are reshaping the city's landscape. They are the titans of India's new industry-scape, the software companies.

Prior to July 1997, Bhubaneshwar had just four IT companies. Since then, the count has soared to 60. And as the mood says it all, there are a hundred others waiting to get going. The value of software export--Rs 5 crore in 1997-98--is expected to touch Rs 220 crore by March, 2001. Software majors Infosys and Satyam already have addresses in the city, and Wipro and Tata Consultancy Services (TCS) could soon be their neighbours. Says Manas Patnaik, Director, Software Technology Park of India, Bhubaneshwar: "It has better atmosphere than other neighbouring states and the raw material for the industry-people--are easily available. The telecommunications facilities are also good.''

The strength of Bhubaneshwar as an IT centre, apparently, is the presence of a large number of small IT companies, typically employing between 20 and 100 people. The presence of several engineering colleges around Bhubaneshwar and a supportive state government also add to the lure. Says Kishore Anand, Vice President, Enterprise System Solutions, an internet solutions company: "(In the whole of eastern India) Bhubaneswar offers the best business environment." Adds S.P. Nanda, IT Secretary, Government of Orissa: "Nothing will put the state under siege. You will not find a Veerappan- kind of an incident happening here."

There are several other advantages too. A lower employee turnover (which could change soon) and a lower cost of living are two of the biggest. Explains Anand: "If you the pay the same salary as in other software centres, the savings to employees are higher."

For business--and Bhubaneshwar--that is good news, since Calcutta, the only other serious competitor in the region, hasn't taken any major pains to woo IT companies. Calcutta's loss, then, is Bhubaneshwar's gain.

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