Software companies boost IT growth in Pondicherry

Blessed with the unexploited nature and famous for its exotic tourist destinations, Pondicherry, also known as Puducherry is a rapidly growing Union Territory (UT) in India. Home of several big IT software and hardware giants, the UT is one of the preferred choice of software professionals not only in south but other regions in India. Pondicherry has marked significant growth in IT, ITes and BPO industry and several policy initiatives such as ‘Pondicherry  e-governance society’ by the N. Rangasamy led UT government has further escalated the growth of IT in the UT.

Educational and Healthcare Hub

Pondicherry is recognized as an education and healthcare hub with several world class education and healthcare facilities being available in the UT. There are 1,255 schools and close to 100 colleges in the Union Territory. The Union Territory has one central university and colleges providing an average of more than 30,000 students passing every year inclusive of 5000 students only from engineering stream.

Pondicherry is one of the places in India which provides world class health care facilities. It has one of the largest super-specialty government hospitals (JIPMER) in India and attracts patients from all over the country. The National Population Commission has credited Pondicherry as number one in India in initiating preventive healthcare mechanism.

Industrial and commercial growth

Agriculture and Tourism are the two prominent verticals in Pondicherry and major chunk of revenue comes from these two segments. However, the revenue contribution of IT and ITeS industry is growing in recent years. The electronics and light engineering sectors have also picked up with major hardware companies opened their plants in the UT.

Growth of IT

The last couple of years have witnessed a lot of information technology facilities and software companies opening their facility centres Pondicherry. IT Hardware giants like Lenovo, HCL, Acer, HP, and Wipro have set up their units in Pondicherry. The software industry in the Pondicherry is largely dominated by the ITeS segment with several BPOs operating in the city. The top IT software companies include Webbylogic Solutions, GPRO Technology, Prapthi Technology Service, Effindi Technologies etc.  The local administration has also formed several pro IT policies to boost e governance and attract IT investment in the region.

The Channel and the challenges

The IT hardware industry is witnessing slow but steady growth in Pondicherry. Though its share shrinking with growing demand for laptops and tablet market, the PC assembling market exists in the UT and contributes towards the revenue. Security and surveillance is the major area where resellers are exploring new business avenues. The proposed Smart City project and need for surveillance has generated huge business opportunities in the area for local resellers and dealers.

“The surveillance business is growing in Pondicherry and it will further grow and expand further”, says  Hemant Jain, owner of Mahavir Computers.

Like other cities, the Online sales is the prominent challenge that Pondicherry resellers face. There is growing demand for regulatory body for online transactions.

“Online portals and their predatory pricing policies have adversely affected the business of resellers in Pondicherry. The huge price difference has made it difficult for us to do business. The government needs to look at the interests of lakhs of IT hardware professionals who have actually taken the industry to the level it is currently”, says R. Aravindhan, owner of Shamrock Systems.

The way ahead

IT industry in Pondicherry has huge potential, however, it requires more assistance on part of the UT government. There is need for SEZ and IT parks to attract MNC investment in the field of IT. Proper policy implementation on part of the government will boost the growth of the UT in coming years.

Pondicherry at a glance...

Number of resellers/ dealers: 200 (Approx)

Key Verticals: Agriculture, Education, Healthcare, Tourism, IT, ITes

Prominent Brands: Dell, HP, Lenovo, Kaspersky, K 7 Anti-virus, D Link

IT Association: Information Technology Traders Association (ITTA)

Interview 1

Aravindhan, President, ITTA

What is a current scenario of IT hardware market in Pondicherry?

Aravindhan: IT hardware market is going through its low currently. The demand and the revenues are shrinking. OLS is one of the reason for it. Online portals and their predatory pricing policies have adversely affected the business of resellers in Pondicherry. As a representing body of hundreds of IT hardware professionals, we are committed to safeguard the interest of the offline channel. We demand a regulation on OLS by the central government.

How ITTA is helping the growth of IT hardware Industry in Pondicherry?Aravindhan: IITA was formed in 2003. It represents around 50 partners from Computer Resellers, UPS manufacturers and resellers and Office Automation products. ITTA has been working closely with its members and has been regularly conducting annual elections for its governing body, family meets, picnics and various vendor meets. It conducts Compex, a computer and IT products exhibition every year in January. ITTA works in close association with the Industry Chambers and all IT/Electronics Associations in India and overseas for the advancement of the IT Industry in the city. IITA is emerging as a strong voice of the reseller community in Pondicherry.

Interview 2

Hemant Jain, Mahavir Computers

What is the current state of assembled PC market in Pondicherry?

Hemant Jain: The demand for assembled PC market is declining day by day. There is almost 60 percent decrease in the assembled PC trade. Due to the inclination towards tablets and laptops, the market share of desktop assembling is declining. Earlier we used to assemble 200-300 PCs per year. Now the number has come down to 50-70. Customers prefer branded products, hence, the demand for assembled PCs is less.

The government in its recent notification has restricted concessional excise duty on computer components at 6 percent only to the ‘actual users’. Do you think that it will further increase the cost of PC assembling?

Hemant Jain: It has already increased the cost of storage devices like flash drives and it will further affect the assembling business. Due to such challenges, many resellers are diversifying towards security and surveillance business. The surveillance business is growing in Pondicherry and it will further grow and expand in Pondicherry.