Mysore turning into IT hub, business booming

Pensioners' paradise, Mysore is getting hooked to the fast-paced world of
IT. The sedate town is fast transforming into the IT hub #2 of Karnataka. With
Bangalore bursting at the seams due to inadequate infrastructure and other
issues, including the sky-high realty prices, Mysore is emerging as a next
favored destination for IT in Karnataka.

The shift is evident in the recent news reports such as: Infosys' to expand
its facility in Mysore; Wipro and Dell zero in on Mysore to set-up software
development centers. In fact, the software revenue has almost doubled in the
region - from Rs 180 crore to Rs 360 crore in the current year. This simply
translates into more business for the industry and channel community.

The
local resellers have doubled their revenue targets for the current year. Many of
the resellers in the region are already witnessing a sudden spurt in sales,
resulting into manifold growth in business. Mysore has turned into a vibrant
market for vendors, distributors and dealers alike, with business booming across
the industry segments.

"Last year, we did a turnover of only Rs 5.8 crore and are looking at
doubling the turnover this fiscal. We are confident about achieving it. VAT has
come as a boon for the industry, that too at the right time," said SV
Venkatesh, Director, Raman Group of Companies.

Mysore is becoming a favored destination for IT mainly because of its
proximity to Bangalore. Just 145 kilometers away from Bangalore, Mysore is more
like an extension to the garden city, rather being a separate city by itself.
"The distance between Mysore and Bangalore is being reduced by laying a
four-track express corridor which will run up to 110 kilometers (instead of the
original route of 140 kilometers). Railways is also laying a double track
between the two cities, which will improve the train services and commuting.
Besides, Mysore is also going to be well connected through air, with the opening
up of airport, which was not functional for quite sometime now. With all these
happening, Mysore will clearly emerge as the next favored destination for IT in
Karnataka," said Venkatesh.

Mysore is also known for its knowledge capital and in the recent past has
attracted many BPO companies in its fold. "One interesting thing about
Mysore is it is a fairly distributed market. The IT revenues come not only from
big players but, even small companies are doing well here," said SV Harish,
Director, Raman IT Solutions.

Although, the city has improved in terms of better roads, infrastructure and
connectivity, still, it has a long way to go to sustain its growth and the
current momentum. Power crisis is a big issue and it hits the industry badly.
"I feel, as a city, we are gearing up on all fronts and soon, Mysore will
change its image for good," said TS Lokesh, Director, Premier Computer
Services. The city also enjoys a pleasant weather.

The introduction of central VAT, abolishing the local sales taxes in
Karnataka, has given a boost to hardware sales here. Now, the IT hardware
product prices have come down because of the low tax structure. It is also
understood that cash purchases have increased, as against the credit (buying
through bank loans). "Earlier, the ratio was 60:40 between credit and cash
sales, which has now completely reversed. Also, the sale of branded PCs has
increased as price difference between branded and assembled has narrowed
down," said G Dashakumar, CEO of Dash Softek.

Home segment is doing well in Mysore and laptop sales have also lapped up in
the recent months. "We are opening two showrooms in the city as retail
market is looking up," said Harish.

S GOPIKRISHNA