Tapping into tier-3 towns

Hundreds of techies from Sivaganga district travel every day to neighbouring Madurai to work in the IT companies. Many of their peers have migrated to metros such as Chennai to join IT/ITeS companies. But, in the near future techies from the south Tamil Nadu district may get to work in top IT companies closer home as the government is setting up TIDEL Neo (a mini-TIDEL Park) at Karaikudi. This could be a gamechanger for local IT entrepreneurs such as Grit Digitech, an end-to-end SAAS management learning platform operating out of a three-storey building in Sivaganga town.

“The proposed facility will be our new address as we expand our 28-member team,” says Grit Digitech founder and CEO Arul Jeyaraj. “The IT park will house startups and companies in IT and related sectors under one roof. This will also be a pull factor for IT giants to explore tier-3 towns for expansion instead of just Madurai or Trichy,” he says. “I worked in the TIDEL Park in Chennai for three years and have witnessed its contribution to IT growth,” he adds. TIDEL Neo will also provide students from engineering colleges in and around the district hands-on internship and training.

The state industries department will spend more than `250 crore on establishing 10-plus TIDEL Neo parks in tier-3 towns including Villupuram, Tirupur, Vellore, Tuticorin, Thanjavur, Salem, Ooty and Sivaganga. Each park will have a built-up space of 50,000 sqft to one lakh sqft to accommodate 450-500 people. The first TIDEL Neo likely to open is at Villupuram; it should be ready by the month-end. These parks are mini replicas of the TIDEL Park in Chennai to create an IT ecosystem across Tamil Nadu.

Industries minister T R B Rajaa says tier-2 and tier-3 towns have a large pool of talent because of exceptional educational institutions. “We aim to enable these youngsters to secure high-quality jobs in their hometowns. With these TIDEL Neos, we intend to attract global tech companies to establish their workplaces in smaller cities and towns,” he says.

TIDEL Neo parks offer a bouquet of advantages such as quality infrastructure at reasonable rates, mentorship and skill development programmes, and employees whose hometowns are nearby. They also serve as platforms for innovation and entrepreneurship, nurturing the next generation of tech innovators.

IT parks in tier-3 towns provide cost-effective solutions, says Arun Rajeev Sankaran, founder and CEO of Nagercoil-based SAAS startup FinOS Technologies Private Limited. “If we have to spend about `50 lakh on operational expenses and salary for 100 employees working from an office at the IT park in a tier-3 town, it would be six times more in Chennai,” he says.

The existing airports in tier-3 towns and reports of expansion of Thanjavur airport make TIDEL Neo parks more attractive for MNCs. Veila K Raja, chairperson, CII Tuticorin, says the IT sector in the district is on an upward trajectory, showing immense potential for growth. “The expansion of Tuticorin airport will be a gamechanger for the sector. It will amplify Tuticorin’s accessibility to national and international markets. This will help attract investors, fostering collaborations and facilitating seamless flow of talent,” she says.

V Jaya Chandra Bhanu Reddy, managing director, TIDEL Park Ltd, says the mini parks will spur IT development in tier-3 towns just like the first TIDEL Park did for Chennai two decades ago.

Tamil Nadu Industrial Development Corporation Limited (TIDCO) managing director Sandeep Nanduri says several IT companies are looking to set up their centres in tier-2 and tier-3 towns because of availability of skilled manpower, reasonable infrastructure and operational costs at reasonable rates.



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