Leading the IT pack

Tamil Nadu Chief Minister J Jayalalithaa has set an ambitious target for the state and the government in the IT field. With a brand new IT policy, to be unveiled soon, she wants to position Tamil Nadu as the Destination of Choice for IT Investments. And make TN the 'Knowledge Capital of India'.

Even more important is the vision the CM has set for her government: "to put a smile of prosperity on the face of every citizen of TN by leveraging IT to create value and wealth for a knowledge-based state." The vision and targets are achievable. All that it requires is some quick thinking and hard work. The task is made easy by the fact that the state has many things going in its favor. TN is already a major IT investment destination. The state has excellent IT and telecom infrastructure, skilled human resources, an IT culture, social and cultural infrastructure, and above all well-acclaimed entrepreneurship spirit.

The state's existing IT companies are doing well. There are more companies coming in to utilize the available opportunities. The software exports from the state last year crossed the $ 1 billion mark. Yet, the mindshare the state has among global investors is not as high as that of two competitive neighbors Karnataka and Andhra Pradesh. Tamil Nadu has so far relied on its fundamental strengths to draw upon potential investors. But in the fast changing world with competing states and nations, one has to shout to get heard.

It is this gap which the proposed new IT policy aims to bridge. The CM has rightly identified the problem. And she has suggested the remedy too: TN needs to be marketed globally. The state intends to reach out to the wide world by participating in international IT related exhibitions, fairs and workshops and ensure it's voice is heard, and the message of 'IT destination of choice' becomes a reality soon.

Tamil Nadu has to focus on few domain areas and entice the best players in these to invest in the state. The multiplier effect in terms of global visibility and attractiveness would be manifold. Some of the domain areas could be Business Process Outsourcing (BPO), banking and financials, IT services. The state also intends to attract players who are strong in research and development. Of course, the state is rightly concentrating not just on IT businesses, but also on bridging the digital divide with the stress on a host of e-governance initiatives.

It is now imperative that the new IT policy is immediately unveiled and lost time is made up with quick actions. And this is also the opportunity to go beyond the routine and announce some radical measures to attract investors. To start with, how about the latest Chinese policy of even providing ready-to-use, fully loaded infrastructure for new investing IT companies free-of-cost for the first year of operations provided they have close links with the local community. And many more such innovative attractions?