The Hindu Business Line : IT cos keen to set up units in Mangalore

Though Infosys took the lead in establishing a centre here more than six years ago, no other company evinced interest later. However, the recent announcement of the Chairman and Chief Executive Officer of Mphasis BFL, Mr Jerry Rao, to set up a centre in Mangalore has made other IT companies to look at the city as a destination for setting up their base here.

Sources in the IT industry said here that "First Indian Corporation" and a few other companies have surveyed the area.

They are yet to finalise on setting up their bases here.

They say that Mangalore is ideally suited for setting up BPO (business processing outsourcing) companies.

The availability of English-speaking manpower, and fairly comfortable real estate market and telecommunication facilities are attributed as some of the reasons for this.

Though the real estate market is picking up in Mangalore, it is still 20 to 30 per cent cheaper than that of Bangalore.

When enquired about the availability of telecommunication facilities for the IT sector, BSNL sources said that they are ready to provide any facility to the IT sector.

In fact, one of the officials in the BSNL said that his department is ready to "create and give" facilities to the IT sector, if the companies are ready to invest in the area.

It is not that the area is free from problems.

The major hindrance is the lack of same-day flights to other destinations. The airport expansion, which is likely to be completed by December 2005, should come as a relief for the industry in this regard.

To promote IT industry here, the Central Government has set up a campus of Software Technology Parks of India (STPI) on a 12,000 sq ft area. According to Mr Ganesh Nayak K., Officer in-charge, STPI, Mangalore, export from Mangalore STPI during 2003-04 was to the tune of Rs 502 crore.

This year, it is targeting a 30 per cent growth in exports compared to that of the last financial year.

STPI here is operating with two satellite gateway earth stations for datacom and quality Internet services.

However, people in the IT industry here feel that establishment of an IT park may further help in attracting more investments to the region.