Broadband applications put on fast track in state

I-Day date for BSNL’s video telephone service inauguration

Reposing faith in the World Bank’s report terming broadband a key to economic growth and job creation in developing countries, BSNL is committed to extend the applications of high-speed internet facility to every nook and corner of Gujarat.

Top bosses of BSNL pledged to extend the service to as many Gujarat residents as possible in the next three years on Friday at an event ‘Broadband-Growth engine for IT industry’, organised by Gujarat Electronics & Software Industries Association (GESIA) and Sai Info System (India) Ltd. Besides BSNL officials, experts from IT industry also took part in it.

President of GESIA Nirav Shah said: “Broadband is one of the most unifying and effective element for communication.”


BSNL, which has a wide presence in Gujarat, has several ambitious plans for the city. “We have laid 6,000 km of optical fibre in Ahmedabad and will try our best to add more. We will try to cover an additional 15,000 km in the next three years and reach each and every village,” said Satya Pal, the chief general manager of BSNL, Gujarat circle.

“We have done a soft launch of our video telephony (one can see the person one is talking to) and are planning to formally launch it on August 15 in Ahmedabad,” said SK Bhandari, the principal general manager of BSNL.

India is 15th largest broadband market in the world and is one of the fastest growing. “There are around 376 million users of broadband. Of them, 100 million are mobile broadband users,” said WizzoTech director Ruzan Khambatta. The applications of broadband like tele-medicine, tele-education and BSNL are trying to promote the use of fast speed internet.


NIRAV SHAH RE-ELECTED AS GESIA PRESIDENT

Nirav Shah, Managing Director and CEO, Jayatma Informatics P. Ltd. was unanimously re-elected as the President of GESIA for the year 2009 – 10 at the 12th annual general meeting of Gujarat Electronic & Software Industries Association (GESIA) on Friday at Ahmedabad.

The non-profit organisation with more than 190 members also decided to incorporate some Honorary Members from academics and people of social repute

Source: Ahmedabad Mirror

1-yr STPI extension irks IT Inc

Guj at disadvantage with no ready SEZ for transition

The Union budget has evoked a mixed response from the information technology (IT) industry in Gujarat. While steps like removal of fringe benefit taxes (FBT) and increased expenditure on education through IT have been appreciated, extension of Software Technology Parks of India (STPI) benefits by just one year has made some companies in Gujarat uncomfortable.

To know why STPI benefits are important, one need to understand that the IT firms in Gujarat are still yound and small in scale. So, they have not completed 10 years and are still eligible for tax benefits and moreover, they are not big enough to make the STPI to SEZ transition easily. The top it all, except Raheja's IT/ITeS special economic zone, no other tax haven is ready to house IT companies so far.

Commenting on STPI extension till March 30, 2011, a local entrepreneur said, "Extension of exemptions by one more year is a move that is more emotional than of actual benefit".

The president of Gujarat Electronics & Software Industries Association (GESIA) and MD of Jayatma Informatics, Nirav Shah, said, "The Centre has apparently taken a middle path looking at the slowdown. Eventually, all exporting IT firms will have to shift to SEZs, but extension will give them time to prepare for it."

"On the other hand, with FBT gone, companies will definitely benefit as there is lot of travelling for on-site project execution and other purposes. Also, the government's spending of Rs900 crore for education using IT and similar projects will help companies with domestic focus," he said, adding that the government should, however, had planned IT clusters in states like Gujarat, which it did not.

The executive director and co-founder, Azure Knowledge Corporation, Jay Ruparel said, "The budget is more political than expected, despite the UPA having a comfortable majority. Still uncertainty prevails over what is to be done, regarding STP-SEZ situation. A small company needs at least 18 months to make the transition. Moreover, no SEZ is ready right now. In addition, increase in MAT from 10% to 15% has come as a severe blow. It was not the right time for such decision."


Voices were also raised in the industry that government has not done much to encourage the domestic IT consumption.

"Philippines' IT exports are already more than half of India's exports. STPI was a visionary step, but with growing International competition, we need a clear vision for next 10-15 years. However, there is no long term policy in the offing. In addition, the outlay under the export guarantee scheme should have been increased," Ruparel added.

Source: DNA

Guj IT sector adds 3,000 jobs

While most Indian IT players - rattled by recession and US president Barack Obama's Bangalore versus Buffalo rant - are preparing to hack their staff strength, the Gujarat IT industry is adding over 3,000 new jobs.

Industry insiders said that the most of the new positions were not project-bound, and offered permanent jobs. They put the number of project-tied openings at 10% of the 3,000.

The number is impressive because the state's IT industry employs only around 10,000 trained professionals, industry experts said. The fresh opportunities being created in Gujarat will cheer the IT companies across the country assailed by one bad news after another. Indeed, the National Association of Software and Services Companies (Nasscom), the chamber of commerce of the IT-BPO industries in India, had issued some glum predictions.

Nasscom had foreseen the strength of the IT industry's strength stagnating across India or taking a dip in FY10 in relation to FY09. As for Gujarat, most of the new IT jobs are being added at the entry level.

Leading the pack of companies on the hiring mission in the state are the Azure Knowledge Centre and Etech Ltd. Both are adding over 1000 people. Other leading companies which are hiring from 50 to a few hundred employees include Motif BPO, Dev Information Technology, Elitecore Technologies, Sai Info Systems, Ageis and iCall.

Gujarat IT companies getting work from foreign SMEs

Not surprisingly, KPMG, a global consultancy firm, had put Ahmedabad among the world's 31 'New Emerging Destinations' for the IT and BPO sectors.

The head of the Gujarat Electronics & Software Industries Association (Gesia), Nirav Shah, said, "Companies catering to both international and domestic markets are hiring people." He said that the balance was tilted in favour of those serving the local markets, given the condition of the world economy.

"However, Gujarat firms are also benefiting from foreign SME work trickling down here, as we still maintain cost-effectiveness over cities like Bangalore and Pune," Shah said. His firm, Jayatama Ltd, is adding 50 to its 1000+ strength.

The Azure Knowledge Centre's co-founder, Jay Ruparel, said that they were going to add 1000 people to present headcount of 2,600. "Around 75% of these are entry-level positions."

According to Etech officials, the company will add around 100 people every month for next one year. Similarly, Gujarat's leading BPO, Motif Inc, hopes to increase the headcount in India from 600 to close to 1,000.

Source: DNA