Crystal IT Park, notified SEZ in Indore becomes attractive!
I was wondering while writing my last blog on ‘Indore could not become IT destination’ that how much of this blame lies on us – the local IT players in Indore.
I think partially we are responsible, first we ourselves could have grown to a level where we could demonstrate enough capabilities to rest of the IT world in India and generate an interest in them to look at Indore and its companies.
Second we could have formed a consortium and pitched with the government to help them market Indore as a preferred IT destination, – but this gives rise to another question, why would we bring in a bigger player/better brand and risk losing our resources.
I think that is the thing of the past, however tables have turned upside down and now local IT companies in Indore would want this Crystal IT Park to get operational as soon as possible. Even at the risk of bringing in a national player to local turf.
Primary reason being – highly probable sunset clause in STPI which will mean that after 31st March 2011, income tax benefits to IT/ITES exporters will end. It was supposed to end on 31st March 2009 and has already been extended twice for 1 year each in respective budgets.
Most of the IT/ITES exporters rely on business from overseas markets like US/Europe/Australia/UAE most of which are undergoing major upheaval in this recessionary time. This has put excessive pressure on IT players especially SME segment which are significantly dependent on lesser number of key clients.
Revenues are falling, margins are shrinking as rate are getting lower and lower, new sales cycle is getting longer and longer, growth has taken back seat and business sustenance is creeping up as the key objective for SME players.
At this time, SME sector cannot bear the double whammy in form of paying taxes as otherwise they will be left with lesser resources to fight the recession and grow in a recessionary market or choose a new sales geography.
What to do?
I feel local players at Indore should come on a common platform and make concerted efforts to pump life back in SEZ that is Crystal IT Park, Indore.
I have attached a presentation here. Your inputs are more than welcome in order to revive it.