The Hindu Business Line : Kerala's IT infrastructure attracts investments in a big way

KERALA'S information technology (IT) infrastructure has started to attract large-scale private sector investments as the State is fast emerging as a key destination for technology firms in South India.

Along with the private sector, the State Government is also making significant investments in beefing up IT infrastructure by constructing advanced facilities in Thiruvananthapuram and Kochi.

Currently, the two existing State-owned facilities, Technopark in Thiruvananthapuram and Infopark in Kochi are completely occupied.

Even the latest building at Infopark, the 2.5 lakh sq. ft Vismaya, inaugurated on Tuesday, is fully taken up by companies such as Tata Consultancy Services, Wipro and ACS.

Against this backdrop, the entry of private sector players in creating IT infrastructure promises to change Kerala's technology landscape significantly in the coming years.

One of the first private sector companies to set up IT infrastructure in the State is the Leela Group, known for its luxury hotel chain. The Leelainfopark, located close to Infopark, has three phases, of which the first one is now operational.

The company has built 1.36 lakh sq. ft space, which is taken up by Outsource Partners International, a business process outsourcing (BPO) company, and software developer, IBS.

A Leela Group official said the second phase of Leelainfopark, envisaging 3.5 lakh sq. ft of space would be ready over the next 16-18 months. Another facility is planned in Thiruvananthapuram, adjacent to Technopark, where 4.5 lakh sq. ft of smart space would be created.

A prominent player to enter Kerala's technology space is L&T Tech Park Ltd. The company will shortly lay foundation stone for a 3.6 lakh sq. ft building within the Infopark campus.

The building, named `Tejomaya', can house 4,000 people and is expected to be ready by January next year, company officials said.

In the second phase, L&T Tech Park would add 2.9 lakh sq. ft. The building will be constructed on a four-acre plot taken on 66-year lease, officials said.

The Kerala-based Muthoot Pappachan Group is also all set to market its `Technopolis', a 3.5 lakh sq. ft facility located in a special economic zone in Kochi.

In addition to this, the Rs 1,500-crore Smart City project by the Dubai Internet City (DIC) is also slated to come up in Kochi. Final agreements between the Kerala Government and DIC are expected to be signed shortly.

On its part, the Kerala Government is ramping up Technopark by adding 100 acres in its third phase of expansion. In a nearby area, a 500-acre `Technocity' is also being planned, for which land acquisition would commence shortly.

The present boom in construction activities related to IT is happening at a time when Kerala is growing in stature as a key destination for IT and BPO companies.

Leading companies such as Infosys, Wipro and TCS have all set up facilities in Kerala, taking advantage of the State's skilled manpower and lower costs vis-à-vis other cities such as Bangalore and Hyderabad. Many BPO units have also started operating in the State.

Kerala's own IT companies such as IBS and US Technologies are also growing rapidly, adding more people and facilities. However, lack of quality space in the State has been a concern for these firms as Technopark and Infopark are choc-a-bloc for some time now.

The present trend in infrastructure development indicates that over the next couple of years, Kerala will have adequate quality space for IT companies.