When Software Technology Parks of India (STPI), Bangalore was set up to promote software exports, there were only 13 software companies in Bangalore. STPI Bangalore has since come a long way with more than a thousand software companies in its fold. Has its relevance changed over the years? What’s in store in the near future? Abhinav Singh has some answers

STPI has played a significant role in brand-building exercises carried out jointly with the Karnataka government, says B.V. Naidu

STPI Bangalore is the largest contributor to India’s software exports and scores over other STPI units in terms of the expertise and the services it provides. The credit for making Bangalore the IT hub of the country goes to STPI in a large measure as it has taken a number of initiatives to boost IT growth in the city. Over the years, STPI has become more prominent. The days when Bangalore had only a handful of software companies are long gone. There is still scope for further improvement in its functioning, especially when it comes to playing the role of a one-stop shop and in its ties with other government departments.

Wanted — A one-stop shop
Bangalore’s software players expect STPI to become a one-stop shop and play an important part in initiating IT development in the city. They feel that STPI should liaison with other government departments, especially Customs, telecommunications and the electricity utility more effectively and save them the headache of running around for getting formal approvals and clearances. Software companies find STPI officials to be more helpful than those in other government departments. STPI’s efficiency with regard to the incubation support provided to start-up companies is a common thread.

Incubation services
Ampersand was one of the first companies in India to actually commence operations under the STPI scheme in 1990. Surekha Shetty, who heads the marketing division at Ampersand Software says, “The kind of support and encouragement that we received from STPI during the initial stages was tremendous. Right from educating us about the Customs and other government departments, STPI ensured that we could get our operations off the ground in a reasonable time frame. STPI provided external connectivity to us through their satellite network.”

Software companies feel that STPI efficiently acts as a nodal agency for most of their financial, legal and regulatory approvals, besides offering office space, connectivity and advisory services during the initial stages. That said, a majority of the companies approached by Express Computer wanted STPI to act as an intermediary with other government departments. The feeling is that STPI can effectively lobby with the state and the central government for crucial issues faced by the industry.

Greater autonomy
A likely solution to the problem lies in transforming STPI into a corporate body with greater autonomy. Roston Ravanan, programme director, finance vertical at Mindtree Consulting says, “There is always room for improvement. For instance, instead of sending the inspector every time a ‘bonding’ or a ‘de-bonding’ has to be conducted, powers can be vested with companies that meet certain criteria, subject to random checks by the STPI authorities.”

Sujit Sircar, financial controller, Mascots Systems, feels that STPI can go on a brand building-cum-marketing exercise, especially to market itself to foreign players interested in setting up base in the city. Sircar adds, “As compared to Nasscom, the brand-building exercise undertaken by STPI needs to improve drastically. STPI can organise seminars and symposiums to achieve this. Such seminars can act as a forum in giving regular feedback and suggestions to STPI.”

Dependency of large software players on STPI is restricted to Customs and some legal clearances as they are able to meet their infrastructure needs on their own. Sircar says, “Initially we took a lot of infrastructure help from the STPI, but since we are a 100 percent subsidiary of a US-based firm our dependence on the STPI is now restricted primarily to Customs and legal clearances.” Smaller players continue to depend on STPI for their infrastructure needs. Aztec Software for instance, is still dependent on STPI. Natraj N, director SMG at Aztec software points out, “STPI is one of our prime vendors, it has provided us with our Internet link, besides setting up our disaster recovery site.”

Staying up-to-date with developments in technology, especially with respect to streamlining connectivity, is another aspect that STPI needs to improve upon. Manoj Bawa, finance controller at Talisma says, “STPI can streamline its connectivity as its uptime is not so good, which has made us look for alternatives in the form of private service providers who give us guaranteed uptime. If uptime is not good and efficient, it can affect the business of a company.” A few players found a tie-up with private players as an answer to STPI’s connectivity problems.

Bawa also points out that STPI should extensively check the background of players wanting to set up base in the city before sanctioning their ventures. This will result in only serious players setting up shop rather than uninterested players flooding the market.

STPI’s response
In stark contrast to the views expressed by software players, STPI claims to be a single window agency, handling a lot of statutory services like providing project approvals, import clearances, export certification and duty exemptions. It further states that it has been continually fine-tuning its services to meet the changing needs of the industry.

STPI Bangalore’s director, B V Naidu says, “STPI has played a significant role in brand-building exercises carried out jointly with the Karnataka government. It is also in the process of introducing a new service portfolio as per the needs of the industry in communications, call centres and disaster recovery services.” The organisation participates actively with the state government in international events and forums on a regular basis. “With such initiatives, STPI has dynamically changed strategies and positioned itself in the right spot to help this industry,” adds Naidu.

STPI is looking ahead. Promotional activities are planned for the near future. It is also in the process of building a strategic tie-up with one of the International Long Distance Operators (ILDO), which will help in providing services to call centres. STPI Bangalore has plans to project itself as a complete service-oriented organisation, helping the IT industry to effectively address communication management, IT management, disaster recovery and business continuity issues.

Besides this, the STPI is playing an important role in providing VSAT connectivity to the government of Karnataka’s e-governance projects. It also has plans to offer VPNs to the state government and to private software players in the near future. The government of Karnataka is also using STPI’s VSAT for its disaster recovery services, particularly in the treasury project.

There is no doubt that government bodies like STPI are inextricably linked to the growth of the software industry in India. STPI’s praiseworthy help to the Karnataka government in assisting the state implement its IT initiatives reveals the capability of STPI. However, given greater autonomy and wider powers, STPI can do much more.