Rs 3 crore cash prize for keeping ITES staff

BANGALORE: As part of its decision to formulate an Information Technology-Enabled Services (ITES) policy, the Karnataka government is contemplating awarding Rs 3 crore each to the first three ITES companies to successfully maintain an employee base of 1,000 for one full year in Mysore and Mangalore.
In Hubli-Dharwad, the first three technology sector companies (either ITES, software or hardware) to retain an employee base of 500 for an entire year will be awarded Rs 3 crore each.
Says IT Secretary Vivek Kulkarni, "Data provided by McKinsey shows that over 65 per cent of the state''s graduates are located in the smaller towns. The policy''s most important focus will be job creation."
Not many know that a draft ITES policy — with some critical recommendations — has already been submitted by McKinsey to the government.
The document says that Karnataka is on the brink of "a major revolution" in the ITES sector. By 2010, the ITES opportunity is expected to create 600,000 additional jobs of which 225,000 jobs can be created in Mangalore, Mysore and Hubli-Dharwad. This will also result in growing the State Domestic Product (SDP) by an additional $7-8 billion, according to McKinsey.
"As per the recommendations, we will be hiring more people to strengthen our marketing department. There is also a need to attract big companies within the country and abroad to locate their BPO operations here. The cost of ITES operations in Bangalore is likely to be about 10-15 per cent lower than in Mumbai or Delhi," Kulkarni says.
The state government will also be providing power concessions to the sector. "The unanticipated changes that have occured in the field of IT have forced us to take a relook at our power policy. We will soon be including ITES companies as another segment which can avail of tariff concessions," says IT Minister D.B. Inamdar.
According to the minister, the government will also consider McKinsey''s recommendation of 100 per cent exemption on stamp duty and registration charges on purchase of land.
Interestingly, the state IT department is also evaluating a number of ITES-training providers to evolve special syllabus for interested students.
BangaloreIT.com dates changed
In a departure from the past, BangaloreIT.com will conclude on November 1, Rajyotsava Day. In a strategic move, the state government has advanced the dates of the technology event to October 28-November 1 from November 1-5.
"Most Indian exhibitors wanted to be with their families on November 3 for Diwali. The new dates, I am sure, will not create confusion among our foreign delegates," Vivek Kulkarni, Karnataka IT secretary, said.