Madhya Pradesh - Bhopal MPbhopalmp.com/mptrifac/admin/uploads/pdf/9137IT-ITES.pdf · 12.4 0 10 20...

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Sector Profile: IT & ITeS Madhya Pradesh

Transcript of Madhya Pradesh - Bhopal MPbhopalmp.com/mptrifac/admin/uploads/pdf/9137IT-ITES.pdf · 12.4 0 10 20...

Sector Profile: IT & ITeS

Madhya

Pradesh

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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PICTURE OF

SECTOR HERE Contents

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IT / ITeS – Scenario in India

IT / ITeS – Scenario in Madhya Pradesh

Why Madhya Pradesh?

Opportunities in IT / ITeS

Contacts

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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SECTOR HERE IT / ITeS - Scenario in India

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Source: www.mit.gov.in

The 'IT' Growth Story

– The Indian Software & Services industry has grown

at a remarkable pace since 2001-02

– IT / ITeS share in India's GDP stands at impressive

5.8% in 2008-09 against 1.2 % in 1997-98

– The overall Indian Software & Services industry

revenue has grown from US$ 10.2 billion in 2001-

02 to reach US $ 58.7 billion in 2008-09

– IT / ITeS sector’s overall CAGR has been of 26.9%

between 2001-02 to 2008-09

– As of 2008-09 IT / ITeS sector provides direct

employment to about 2.20 million people compared

to just 0.52 million in 2000-01

– Estimated indirect employment from IT/ITeS sector

is around 8 million

17.7 23.6

31.1 40.4

46.3 4.8

6.7

8.2

11.7

12.4

0

10

20

30

40

50

60

70

2004- 05 2005- 06 2006- 07 2007- 08 2008- 09

Growth of IT / ITeS sector

IT-ITeSDomestic(in $ bn)

IT-ITeSExports(in $ bn)

0.39 0.51 0.69

0.86 0.92 0.32

0.42

0.55

0.7 0.79

0.35

0.38

0.38

0.45

0.5

0

0.5

1

1.5

2

2.5

2004- 05 2005- 06 2006- 07 2007- 08 2008- 09

Direct Employment in IT/ITeS

IT Services& Exports(in mil)

BPOExports (inmil)

DomesticMarket (inmil)

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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– India continues to maintain its status as the most

preferred outsourcing destination

– IT / ITeS exports have grown at 28.6 % and

domestic market has grown at 22.2%

– The IT-BPO market is projected to grow at 9.1%

annually

– The IT- service market is projected to grow at 6.2%

annually

– Whereas domestic market is expected to grow at

13.9% annually

4

59%

25%

16%

Composition of IT sector in India

IT Service

ITeS-BPO

Software Products,Engineering Services

3.5 4.5

5.5

7.9 8.3 0.6

0.9 1.1

1.6 1.9

0.7

1.3

1.6

2.2 2.2

0

2

4

6

8

10

12

14

2004- 05 2005- 06 2006- 07 2007- 08 2008- 09

In B

illio

n $

Growth of Domestic IT / ITeS market

SoftwareProducts,EngineeringServices

ITeS-BPO

IT Service

10 13.3

17.8 23.1

26.5 4.6

6.3

8.4

10.9

12.7

3.1

4

4.9

6.4

7.1

0

5

10

15

20

25

30

35

40

45

50

2004- 05 2005- 06 2006- 07 2007- 08 2008- 09

In B

illio

n $

Growth of export in IT / ITeS market

SoftwareProducts,EngineeringServices

ITeS-BPO

IT Service

Source: NASSCOM & TECHNOVIA Research

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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SECTOR HERE IT / ITeS - Scenario in Madhya Pradesh

Madhya Pradesh’s IT Vision

– Madhya Pradesh to use Information Technology to

achieve the following:-

Improve the life of the common man by

leveraging the strength of E-Governance

Attracting investment in the sector so that the

educated youth is able to contribute to the

development of the State

Create a pool of highly skilled professionals who

are at par with the best in the country

Transforming Resource based economy to

Knowledge based economy

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Key achievements

– Software Technology Park – Indore is now fully

operational

Common service centers - the 9232 CSC being

implemented on PPP basis

PPP partner are AISECT, CMS Computers,

NICT & Reliance communications

TCS, Wipro working on computerization projects

8000 CSC centers established

Successful computerization of Mandi operations

(EKVI) in A , B & some C class mandies (64 )

completed out of total 230 mandies

Successful commencement of E-Tendering - as

of January 2010, 1500 tenders worth Rs. 48

billion issued via e-tendering

Key

Pla

ye

rs

Source: Annual Report – Department of Information Technology

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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Citizen in-line to Citizen on-line

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State

departments

State

departments

State

departments

State service

& delivery

gateway

CSC

CSC

MP online

portal

State data

center

GO

VE

RN

ME

NT

C

ITIZ

EN

SWAN Internet

Department of Information Technology has

successfully established an online portal for

Government 2 Citizen (G2C) interaction.

The portal enables the citizen to interact with

various department on-line though common

service center or via MP online portal.

Eliminating need to stand in-line at various

government offices

Common Service Centers – One stop point for

interaction with Government department

MP online portal - One stop point for interaction

with Govt. Dept. using internet from any location

SWAN – communication network linking CSC ,

SSDG & SDC

State Service & Delivery Gateway (SSDG)-

Gateway enabling interaction of citizen from one

point to various Govt. Dept.

State data center (SDC) – Storage for all the

transactions and records

A similar portal for interaction with industries (G2I)

communication is being planned

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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Acknowledgements

– State has been ranked 4th in e-Governance

initiatives by Dataquest and IDC

– State applauded for being largest user of Video

Conferencing Services of NIC

– A number of awards conferred on the State for its

outstanding accomplishments in IT/ ITEs Sector

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e-Governance

– Treasury, Commercial Tax, Transport (Driving

License and Vehicle Registration on Smart Card),

Mandi, Land Records are fully computerized

– Property Registration, Multipurpose Citizen ID Card

to be implemented soon

– Public Grievances Redressal through ‘Samadhan

online’

– All 50 districts are live on MP SWAN network

– Total 360 Points of Presence (POP) centres

– MP SWAN network is now available above 250

locations

– 316 locations, where Civil Work is now completed

– 185 locations, where power is available in POP

rooms

– 250 locations, where OFC/ lease line is available in

POP rooms

– 290 Locations, where network is commissioned

State Wide Area Network (SWAN)

Source: MPSEDC

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• Official Portal of the State Government covering 63 services of Govt. Departments

MP Online

• Single help line number for Government services to citizens Citizen Facilitation center

• Unique project integrating multiple functions on forest & wildlife Integrated Forest Financial & Works Management System

• Instant messages to farmers about the weather forecast and other useful information

Kissan Mobile Sandesh

• Overall management of scholarship applications, submission, processing, generation, disbursal and dissemination

Project Scholarship for TWD

• Complete information retrieval of employees of the Departments

E-edumanage

• A web based application for registering the complaints/ grievances of the public

Jansunvai

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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List of Awards & Acclamations received in the field of Information Technology

# Awards Acclamations Project Date/Year Honored by

1 Public participation in service. Silver Icon

Awards

Ideas for HCM, School of Good Governance 2009-10 Web Ratan Awards,GOI

2 Winners in IT Users Category e-

Governance

MPOnline 2009 NASSCOM CNBC TV -

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3 Winners in e-Governance category e-Samvad, M-Governance Mantra for Forest

Management, Education Portal, AMR

2009 Manthan Awards- South

Asia 2009

4 Best e-Governed State-Winners "Mobilizing Digital Economy – A case Study

of Madhya Pradesh" By Anurag Jain,

Secretary IT, GoMP & CEO MAP- IT

2009 CSI Nihilent Award

5 Best Department Category School Education, GoMP 2009 CSI Nihilent Award

6 Best District category – Certificate of

appreciation

Sagar, M.P. 2009 CSI Nihilent Award

7 Category Awards MP Online, Forest Dwellers Survey System,

i-GeoApproach, State School Education

Portal

2009-10 National Awards for e-

Governance

8 Silver Icon Award Automated Metering Project, Fire Alert And

Messaging System

2008 DARPG, GoI - 2th

National Conference on

e-Governance

Source: MPSEDC

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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List of Awards & Acclamations received in the field of Information Technology

# Awards Acclamations Project Year Honored by

9 Best e Governed State "Joint

Runner-up"

Submission made by MAP IT on behalf of

Department of Information Technology,

Government of Madhya Pradesh

2008 CSI Nihilent Award

10 Excellent Project Category "Computerization of Mantralaya" 2008 CSI Nihilent Award

11 Golden Icon Award for Best

Innovative Technology

Tele Bhugtan 2008 Department of Administrative Reforms &

Public Grievances, GoI, during 11th

National Conference on e- Governance

12 2nd Position/ Runners up Application of IT in State Administration (e-

Governance)

2007 India Tech Excellence Award 2007

13 Golden Icon Award for the

exemplary Horizontal Transfer

of ICT based Best Practice

Integrated Treasuries Computerization Project 2007 Department of Administrative Reforms &

Public Grievances, GoI during 10th

National Conference on e-Governance

14 Runners up for delivery of

G2G/ E services

Parakh Project, Samadhan Ek Diwas 2007 CSI Nihilent Award

Source: MPSEDC, India: e-Readiness Assessment Report 2008

Madhya Pradesh has shown an impressive & continuous improvement in levels of

e-readiness index!

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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Key Opportunities

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Source: DIT, MP - Annual Report 2009-10; MPSEDC

Nod for 21 IT-SEZs in the State

MOUs worth Rs. 77 billion with 20 companies for

investment in IT sector in the State

IT Parks at Bhopal, Gwalior, Indore, Jabalpur; Crystal IT

Park

Ideally suited for BPO industry

Software export worth Rs. 2.22 billion during 2009-10

The Government of Madhya Pradesh is keen to put the State prominently on the IT map

of the country and making the State an attractive Investment Destination.

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Operating costs

– On an average Indore, Bhopal and Gwalior have

30% operating cost advantage over the leading

IT cities .

– The margins are getting tight for IT / ITeS sector

– On an average 70% of revenue is operating costs

for companies working in IT / ITeS sectors, majority

of them are located in major IT centers.

– Establishing the same company in MP would help

them bring their costs down upto 50%.

12

Source: Nasscom ‘s report on 50 leading cities

70.0%

56.0%

6.3%

6.3%

23.7%

37.7%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

Le

adin

g IT

citie

sM

P IT

Citie

s

Operating cost comparision

Operating Costs Other Costs & taxes Net Profit

Availability of land

Land at following locations is already in

55 hectares of land in Indore near AB Road Bypass

212 acres of land in Bhopal at Bidwai village (500

meters from airport

possession of Department of IT)

40 acres of land allotted to IT SEZ in Gwalior

90 acres of land in Jabalpur in the heart of the city

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Power Uninterrupted power supply to IT / ITeS companies

via dedicated feeder

Electricity generation capacity at present is 9,878.25

MW

Further 3,124 MW to be added by 2012

.

13

Peace & Quality of life Madhya Pradesh is known for its tropical yet

pleasant climate

Cities of Madhya Pradesh enjoy hassle free

commuting to work place within short distances

Employees can easily maintain work-life balance

Cities of MP provide good social infrastructure

(malls, cineplex, education & medical)

Cost of living is also very inexpensive

Many weekend getaway locations

Telecom and Internet – Madhya Pradesh is geared up to handle its telecom

requirement

– It has 24000 km of optical fibre backbone reaching

up to the block level and below across the whole

State

– Presence of public & private players like BSNL,

Bharti, Tata, Reliance etc. ensure complete

connectivity and service.

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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14

Talent Pool – In line with the State’s IT Vision, the State

Government since last 5 years is increasing the

capacity and number of technical institutes to

provide requisite talent pool to IT companies

– The intake capacity in B.E / Architecture, M.C.A &

Diploma Engineering has increased from

35198 students in 2005-06 to

89885 students in 2009-10

– MANIT – Bhopal, SGS Institute of Technology &

Science – Indore & Jabalpur Engineering College –

Jabalpur considered to be among top 50

engineering colleges in India

– IIT at Indore

– IIIT at Gwalior and Jabalpur 0

10

20

30

40

50

60

70

80

90

100

2005-06 2006-07 2007-08 2008-09 2009-10

Inta

ke c

ap

cit

y i

n (

'000)

Increase in intake capcity

EngineeringDiploma

M.C.A

B.E /Architecture

69 86 124

159 208 55

67

77

91

101

44 44

44

44

49

0

50

100

150

200

250

300

350

400

2005-06 2006-07 2007-08 2008-09 2009-10

Increase in Technical Institutes

EngineeringDiploma

M.C.A

B.E /Architecture

Source: www.mptechedu.org; Outlook survey of Top 50 Engineering Colleges; MPSEDC

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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SECTOR HERE Why MP: Policy Initiatives

– Employment and Land Rate Concessions

The companies in the State would be eligible for the rebate of USD 556 per job created or;

A concession on land rate at 25% of the prevalent premium on investment of USD 2.22 million and above

based on following schedule:

15

Project Costs (USD Million) Maximum land available under concession

2.22 to 4.44 10 acres

4.44 to 11.11 15 acres

11.11 to 22.22 25 acres

22.22 and above Case to Case basis

– Stamp Duty

Exemption of stamp duty payable by IT companies on mortgage/ hypothecation in IT investment area

Exemption of stamp duty and registration fee exemption on- sale/ lease to acquire space/ premises in IT

investment area for subsequent lease to IT units

Source: MP IT Policy - 2006

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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– Exemption on tax and acts

Exemption from Factories Act, Maternity Act, Contract Labour Act, Payment of Wages Act, Minimum

Wages Act, ESI Act.

Exemption from the electricity duty tax, entry tax and work contract tax

IT units in IT investment area will be exempted from the octroi, entry tax and local bodies tax for all capital

goods and raw material purchased by them

Rate of property tax in the IT investment area will be at par with residential premises

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Special incentive to invest in E-governance projects Investors bidding for PPP projects (IT parks / IT SEZ) will get 10 marks, if they have been PPP partner in

E-governance projects in MP

Source: MP IT Policy - 2006

– Power Related Incentives

No prior permission will be required for installation of the captive power plant

IT industry shall be provided power through a dedicated feeder

– Others

Exemptions upto twice the existing FAR for entire IT investment area

All facilities and incentives declared in the new Industrial Policy of MP Government are also applicable for

IT Industries established on Government allotted land/ private land with the single window clearance for

Government formalities

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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Indore

17

Opportunities 55 hectares of land available near AB Road

Bypass

STP - Indore fully operational

IT Park of 2 million sq. feet planned

IT park to be developed on PPP model

DIT to plan, conceptualize the project & provide

land for IT park, Private party to build & operate

the same

Fact File – Indore has a population of 1.475 million

– Presence of major companies of automobile &

pharma sector

– Excellent social infrastructure in form of malls,

food zones, multiplexes & hospitals

– Presence of 3, 4 & 5 star hotels

– Strong educational infrastructure for K12 to

doctorate

– Only city in India to have both IIT & IIM

Real Estate

Particulars Rate range (Rs.

per sq. m)

Land costs – Residential 2000/- to 24000/-

Land costs – Commercial 4500/- to 64000/-

Constructed cost - Residential 6000/- to 35000/-

Constructed cost -

Commercial

9000/- to 60,000/-

Connectivity Particulars

Air Mumbai, Delhi, Bhopal,

Raipur, Pune, Nagpur,

Kolkatta & Goa -

International operations

by end of 2010

Rail All Major Cities

Public Transport Excellent Facility

Power Supply No Power Cut

Source: DIT; MPSEDC; MP - Presentation for NRI Diwas

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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SECTOR HERE Opportunities in IT / ITeS @ Bhopal

Bhopal

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Opportunities 212 acres of land available at Badwai village near

Airport

IT Park of 2-2.5 million sq. ft. being

conceptualized by DIT. To be built & operated on

PPP model.

5000 sq. feet of space available at State Data

Centre, to develop tier IV data centre

Fact File – Bhopal has a population of 1.458 million

– Excellent social infrastructure in form of malls,

food zones, multiplexes & hospitals

– Presence of 3 & 4 star hotels, even heritage

hotels

– Strong educational infrastructure for K12 to

doctorate

Real Estate Particulars Rate range (Rs. per sq. m)

Land costs – Residential 2000/- to 25000/-

Land costs – Commercial 3000 to 37500/-

Constructed cost - Residential 6000 to 25000/-

Constructed cost - Commercial 12000/- to 45000/-

Connectivity Particulars Air Delhi, Mumbai, Indore, Ahemdabad, Raipur

Hyderabad - Intl. Operations by 2010 end

Rail All Major Cities

Public Transport Excellent Facility

Power Supply No Power Cuts

State Data Centre

Source: DIT; MPSEDC; MP - Presentation for NRI Diwas

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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SECTOR HERE Opportunities in IT / ITeS @ Gwalior

Gwalior

19

Opportunities 40 acres allotted to IT SEZ (to be developed on

PPP basis)

IT Park of 0.5-1 million sq. feet being

conceptualized by DIT. To be built & operated on

PPP model.

1 lac sq. ft of constructed area shortly available

for further development

Fact File:- – Gwalior has a population of 0.70 million

– Has presence of very good social infrastructure

in form of malls, food zones, multiplexes &

hospitals

– Presence of 3 & 5 star hotels

– Excellent educational infrastructure for K12 to

doctorate

Real Estate

Particulars Rate range (Rs. per sq. m)

Land costs – Residential 700/- to 28000/-

Land costs – Commercial 2000 /- to 45000/-

Constructed cost - Residential 3500 to 26000/-

Constructed cost - Commercial 7000/- To 75000/-

Connectivity Particulars

Air Delhi, Bhopal

Rail All Major Cities

Public Transport Good Facility

Power Supply No Power Cut

IT Park - Gwalior

Source: DIT; MPSEDC; MP - Presentation for NRI Diwas

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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SECTOR HERE Opportunities in IT / ITeS @ Jabalpur

Jabalpur

20

Opportunities 90 hectares of land available at heart of city for IT

SEZ

IT park to be developed on PPP model

IT Park of 1 to 1.5 million sq. feet planned

IT park to be developed on PPP model

DIT to plan, conceptualize the project & provide

land for IT park, Private party to build and operate

the same

Fact File:- – Jabalpur has a population of 1.11 million

– Presence of major companies of cement and

telecom sector

– Has presence of very good social infrastructure

in form of malls, food zones, multiplexes &

hospitals

– Presence of 3 & 4 star hotels

– Good educational infrastructure for K12 to

doctorate

Real Estate

Particulars Rate range (Rs.

per sq. m)

Land costs – Residential 1000/- to 20000/-

Land costs – Commercial 1500/- to 30000/-

Constructed cost - Residential 3500 to 26000/-

Constructed cost -

Commercial

8500/- To 39000/-

Connectivity

Particulars

Air Delhi

Rail All Major Cities

Public Transport Good Facility

Power Supply No Power Cut

Source: DIT; MPSEDC; MP - Presentation for NRI Diwas

Destination Madhya Pradesh: Global Investors Summit-II, 2010

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21

Address: AVN Towers, Mezzanine Floor, 192 Zone -1,M.P Nagar , BHOPAL-

462011

Telephone : (+91) (0755) 2559970 / 2559979 / 2768058

Fax : (+91) ( 0755) 2559971

E-mail : [email protected]; [email protected]

URL: http://www.mptrifac.org

Madhya Pradesh Trade and

Investment Facilitation Corporation

Limited

Address: 132, Vallabh Bhawan, Bhopal , BHOPAL - 462004

Telephone : (+91) (0755) 2551502

Fax : (+91) ( 0755) 2769824

E-mail : [email protected]

URL: http://dit.mp.gov.in/

Department of Information

Technology

Address: 147, MP Nagar – Zone -1, BHOPAL - 462011

Telephone : (+91) (0755) 2769814

Fax : (+91) ( 0755) 2769824

E-mail : [email protected]

URL: http://www.mpsedc.com

Madhya Pradesh State Electronic

Development Corporation Limited

Address: 147, MP Nagar – Zone -1, BHOPAL - 462011

Telephone : (+91) (0755) 2554107

Fax : (+91) ( 0755) 2769824

E-mail : [email protected]

URL: http://www.mapit.gov.in

Madhya Pradesh Agency for

Promotion of information

Technology