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Executive Vice President,
Tata Consultancy Service
Chennai is already well-known for 'availability of
quality software professionals'. Now the state
government's initiative to set up large scale information
technology park will make the city as a destination for
It is so critical that without this, it will be very
difficult to attract multinationals and Indian software
giants, which have evinced interest in setting up their
development centers here. As the city is already a
international gateway, the proposed park will almost
complete the the basic infrastructural requirements for
Availability of ready made office space will also be
helpful for the software industry to expand further. With
high class communication network and uninterrupted power
supply, it [TIDEL] is a great facility and comparable to
the world standards.
The rate per sq.ft is also very attractive. It is less
than what is being quoted by other parks in the country.
The major advantage of the project is that the location
is going to be within the city limits.
The project, which is expected to be completed in a
year's time, will enjoy demand primarily from two sources
large Indian software companies and MNCs. Particularly
the MNCs which have shown lot of interests in entering
On the other hand, with the park in place Chennai will be
more competitive among Hyderabad and Bangalore in
attracting software projects coming to Indian continent.
Satyam Infoway Ltd.
Today there are lot of software development agencies
in the city which are operating out of suboptimal
conditions or are paying a huge cost for the services.
With such a government supported project, one gets a
ready-made infrastructure to Chaos, there is bound to be
a great demand for the project. Specialty taking into
account the fact the industry is witnessing a 50 per cent
With whatever is been heard about the project, it will no
doubt compare with the most advanced software parks in
TIDEL park will become a key catalyst to change, with the
advent of more software companies and more software
export houses. It will also provide employment to the
local software professionals and help in retaining the
local talents within the state.
The superior infrastructure and the ambience that the
park provides will bestow the confidence to success in
many of its members. For Satyam Infoway Ltd, definitely
the TIDEL park will be one of the prime options while
expanding further in the future.
The deterioration of infrastructure facilities and
overcrowding of the city has affected the progress of
Bangalore as a business center. And compared to an
evolving market like Hyderabad, with TIDEL park Chennai
has all that to make it a superior IT city.
Besides, the state boasts of a good telecom
infrastructure, uninterrupted power supply, efficient
transportation system, linkage to the external world-by
air, rail and sea.
The new policies of the state government, as reflected in
the budget, has seen cuts in excise duties on specified
software and reflects an investor-friendly attitude. This
very move by the government to establish the state as an
important point for software development should be seen
as a step in the right direction.
The cost of space which much lower compared to some of
the other metros coupled with good living conditions is
another attractive incentive for companies looking to set
up shop in the state.
With top class educational institutes like IIT and Anna
University, TN also has a rich professional talent base
which can appropriate.
Temenos Systems[India] Pvt. Ltd.
For the first generation entrepreneurs into the
software industry, TIDEL park will be helpful as it will
drastically reduce their initial set up cost.
Particularly, availability of state system with exclusive
VSNL and STPI link-up, E-mail, Data Transmission and
Video Conferencing for a reasonable price, is a great
opportunity for the entrepreneurs.
The proposal of having a code of conduct among the
members, is an important factor in TIDEL Park, as the
smaller firms will be facing risk of losing their
professionals to the bigger entities in these kind of
To further encourage the smaller firms, the state
government may consider the option of leasing out space
to them government may consider the option of leasing out
space to them for a period of 3 years initially. In this
period they could be able to generate enough to buy own
The project seems to have all the infrastructural
facilities for operating software businesses. More
importantly, the idea of providing other facilities like
Gymnasium, Cyber Cafe, Food, Court, Restaurant, rest
rooms and movies, will really make the life style of the
software professionals comparable to the world standards.
Currently in India, there are very few software
destinations. Among them, while Bangalore is on its way
down because of various reasons including poor
infrastructure, Hyderabad is promising a lot.
In this context, Chennai is a preferred place for
software exporters as well as preferred as it has all the
embassies among others infrastructural facilities. With
the proposed information technology park, the city will
definitely emerge as a top software destination in India.
If the park also provides services in the areas of
obtaining export licenses and hotel room facilities [for
visiting foreigners], the software companies will be
totally free to focus on their jobs, which will in turn
increase the software exports from TN.
As for as Temenos Systems is concerned, it just moved
into a new office for the on-going expansions. The
company has plans of investing US $ 5-10 millions every
year for next three years and recruit over 500
professionals. So in two years time, Temenos Systems will
try to move into TIDEL park for its further expansions.
Pentafour Software & Exports Ltd.
Q: How TIDEL Park will
benefit Tamil Nadu as a whole? And more particularly in
attracting software companies? [ Joint Ventures, MNCs,
Large Indian Software houses and entrepreneurs ].
A: The TIDEL Park will generate
employment and recognition to Tamil Nadu as a major
global information player in the global market facilities
such as uninterrupted power supply through 110KV
substation, exclusive VSNL link-up facilities, E-mail,
data transmission, videoconferencing, ISDN and high speed
data links all under one roof are a boon to the growing
Q: With TIDEL Park in
place, how do you compare Chennai with its competitors
like Bangalore and Hyderabad ?
A: Chennai is well connected by air, sea
and road and it is the international hub of South India.
Chennai is one of the major metropolitan cities of India.
Various International consulates have their embassies in
Chennai. Major International players like Ford and
Hyundai have already invested in Chennai and the TIDEL
Park will be the doorway for major international and
domestic IT players to start shop in Chennai. Chennai and
its surrounding has about seven engineering colleges, one
exclusive engineering university, and the world renowned
Indian Institute of Technology to meet the growing
demands for IT professionals.
Q: Compare the proposed
Tidel Park with similar software international Parks.
Does the project have all infrastructural facilities for
operating software business?
A: The proposed Tidel Park has all the
requirements to meet the international standards of
software parks. Major international software parks are
situated in major cities with facilities like export
processing zone (Madras Export Processing Zone),
International air,sea link , support from international
embassies for speedy visa processing which helps save
time and material for IT players in the export market.
Q: Will your company or
your sister companies consider moving into Tidel Park,
while expanding in the future?
A: Pentafour was the pioneer to set up a
22-acre software park at Kelambakkam near Chennai as
early 1995. Pentafour's Software Technology Park houses
the Software Development Park, which caters to the
General Software Segment and the Electronic Hardware
Technology Park, which caters to the multi-media segment.
At appropriate time, we will definitely consider.
Q: Will Tidel Park play a
key role in boosting software exports from TN? And also
A: Tidel Park will play major role in
boosting software exports from Tamil Nadu. The The
technological infrastructure at Tidel Park and the
location in Chennai with an international and domestic
airport supported by the presence of the Export
Processing Zone would be the key factors in boosting the
exports from TN.
Q: How Tidel Park will
benefit Tamil Nadu as a whole? And more particularly in
attracting software companies?
A: Setting up the infrastructure for a
software company is indeed a tiring and pain - staking
process. The expectations of the working ambience by
employees are very high and even customers expect world
class infrastructure to do business. There are so many
challenges involved in setting up software development
like STP, VSNL, TNEB, Customs, Sales Tax, Air
conditioners, Contractors etc. Coordination between these
is indeed a major exercise . Tidel Park is expected to
create a facility which would provide world class
-infrastructure and this would therefore be very useful
for software companies to just move in on a plug in on a
Q: With Tidel Park in
place, how do you compare with its competitors like
Hyderabad and Bangalore?
A: Tidel Park is well placed in the city
of Chennai and this is a very important consideration in
choosing a site for software development as employees-
friendly. It should be possible for employees to commute
at late hours to their home without any major problem and
inconvenience. Video Conferencing on a leased basis for
the members of the Tidel Park would be very essential.
However , based on other software parks in the country
run by the Govt, the house house-keeping and maintenance
, leaves much to be desired.So, this one aspect should be
taken care of , after Tidel Park is handed over.
Q: How do you foresee
the demand for the Park , when it is ready?
A: Tidel Park is providing facilities of
International standards and should be possible to
lease/sell the area very fast . However, at the same time
, our Govt, is also planning 3-4 other software
development parks which might create unnecessary
Q: Is the Quoted rate
per sq. ft. reasonable given the facilities? Also compare
the cost with other parks?
A: The Real Estates is in a very low ebb
and the lease amount is even less than the interest cost
of the capital required for acquiring real estate.
However , the rates become very crucial for sale ability
of the premises. I do not have the details of the rates
of the to make any comments on this at present.