SIDDHARTHA MUKHERJEE

'It is ambitious but definitely not unachievable'

COGNIZANT Technology Solutions which had ranked as a leader in META Group’s METAspectrumSM report for Offshore Outsourcers and one of front ranking IT companies in India today, is one among those who ventured into uncharted territory, took the risk and proved critics wrong that West Bengal has virtually nothing to offer to the IT community. A responsive government and its nodal IT agency WEBEL, availability of quality human resource, lower cost of operations prompted Cognizant to set up a shop in Kolkata, asserts Mr. Siddhartha Mukherjee, Vice-President and Head of Cognizant's Kolkata operation. In an interview with Amitabha Sen he has expressed confidence that the state's target to contribute 15-20 percent of gross national revenue of the IT sector is "ambitious but definitely not unachievable. It will take some doing, a single mindedness of purpose and perhaps some hard decision making."  Mr. Mukherjee urged to the state government not to lose sight of the requirements of those who came early and helped create a credible story for West Bengal. The state government  "needs to support these companies whole heartedly'", he said.

What prompted Cognizant to select Kolkata as another IT destination after Chennai?  

The key factors were proximity of renowned academic institutions and the resultant high quality person-power, availability of space, lower cost of operations, quick response from the government and Webel during the initial evaluation and set-up process.

You are here in Cognizant Kolkata from the beginning. What difference you find today in the IT scenario in Bengal since Cognizant made its journey in this city?  

In 1996 when Cognizant came to Kolkata there was no visible commitment from the government authorities. We set up shop in Kolkata based on its inherent advantages and on an assurance from the government that things will improve. I have to say that the conditions are indeed better than what it was then both in terms of responsiveness and physical infrastructure. The state is more committed towards facilitating the growth of the IT industry and competition is building up-this demonstrates that the credibility of the state is much stronger than it was then.

March last year you pointed out to the media about the lack of visibility of Bengal as IT destination and also deficiencies in marketing the state as IT destination. What's your view today about these two most important issues?  

The initial lack of visibility and brand equity is somewhat mitigated by the fact that both the IT Minister and the IT Secretary have been speaking in Industry forums about the developments in the state. Also, the Chief Minister’s statements on the government’s commitment to further IT in West Bengal have had a tremendous positive impact on the business community.

Marketing is an ongoing activity which needs to be pursued relentlessly and endlessly. More importantly, we must learn from our previous experience and strengthen our marketing effort. From a tactical point of view, if currently, other states are having issues with infrastructure, commuting distances and bad roads we should position our marketing initiatives to capitalize on that. As an example, I have heard from my colleagues from other states that the new airport road in Kolkata is fabulous—and it is indeed so, but the approach (which is less than a kilometer) takes away a lot of the good taste. Collectively, we should realize that this road is a differentiator and must at all times keep it in good condition.

Do you find any gap between your expectation that you possibly had at the beginning and now about the state government's fulfilling its responsibilities towards the IT companies who have made Bengal as one of their destinations?  

With the upsurge in interest in Bengal, many prospective IT companies—small and large—are planning to set up shop here. I would submit that in this euphoria the state should not lose sight of the requirements of the companies which came earlier. These companies essentially ventured out in uncharted territory, managed the risk and proved the critics wrong and helped create a credible story for West Bengal and the government needs to support these companies whole heartedly.

All is admittedly cannot be hunky dory about Bengal IT initiatives like developing infrastructure. What is your opinion about the infrastructure back up that the state government is supposed to provide to IT facilities?  

Great progress has happened in Kolkata, but one area for improvement is the availability of space and the scope to expand operations. Although Rajerhat is being showcased as the future for IT expansion, land prices need to be attractive for companies to migrate. While demand determines price, the IT initiatives need to looked on as a longer term strategy where perhaps we should take a view that price would determine demand. In other words, pricing needs to be attractive enough to act as an USP to draw investors.

The state government has an ambitious target of  contributing 15-20 percent of the national revenue from IT sector by 2010? Nasscom projects IT industry revenue at $50 billion by 2008. Is the state government target achievable? If so, what are the prerequisites you think the state government will have to fulfill to achieve this ambitious target?

It is ambitious but definitely not unachievable. It will take some doing, a single mindedness of purpose and perhaps some hard decision making. In my opinion, the pre-requisites for accelerated growth are:
 

Continued improvement in infrastructure, including land (space) availability and road conditions Improved quality of person-power graduating from the colleges; in the next few years the number of graduates passing out needs to increase keeping in mind that there is a lag in this input-output process Sustained marketing efforts by the state and transparency of operations to strengthen the trust of the business community

• Balanced growth between IT services and BPO, since the former is higher on the value chain, more sustainable and less susceptible to extraneous influences and is instrumental in creating a knowledge base and program management expertise which is difficult to replicate quickly (barrier to entry from competing countries)

• Greater realization that IT is not an island; it’s a part of an ecosystem which will have a strong influence on how IT flourishes in West Bengal. A few other constituents of the ecosystem include education, healthcare, infrastructure, and social amenities. A singular focus in IT alone may get good results in the short-run, but it is the ecosystem that will sustain it.

Would you tell us something about the industry's commitment towards strengthening the IT sector here and also to carry the message to the prospective international investors?  

The industry’s commitment is solid and unequivocal. All leading companies in Kolkata participate in various forums to promote IT investments in Bengal. Their success stories by themselves create a strong favorable message for prospective investors. Cognizant has played host to several prospects (organizations) when they came to visit the city for conducting due diligence/evaluation and has shared the wonderful experience we have had in nurturing Cognizant in Kolkata with the support of the government, quasi-government bodies, professional and trade bodies, and educational institutions. Perhaps a more visible common front needs to be created. In this context the media can play a very vital role in reinforcing this message.

Often times international investments are driven by domestic origins of key decision makers in international organizations. So a decision maker in an international organization having origins in Kolkata would look upon Kolkata as a favorable destination. It may be worthwhile to network with people hailing from this part of the country for possible inflow on investments. Needless to say we will need to “walk the talk”.

At what stage is your proposed Kolkata Development Centre? Can you give us some details about that?  

To add to our current facilities in Calcutta (fully owned techno-complex and two leased premises), we are finalizing plans to extend the techno-complex building to add another 78000 sq. ft. This is part of our $76 million India expansion program we had announced a couple of months back.

Construction will start in December 2004 and this extended facility will have the capacity to house  another 750 software professionals, adding to our current strength of over 1300. We have also requested the government for allotment of a three-acre plot adjacent to our present techno-complex. Furthermore, we have indicated to the government that we are interested to lease some space in Rajerhat once the land is ready for allotment.  


December 1, 2004

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Mr. Siddhartha Mukherjee
Vice-President &
Head of Cognizant's Kolkata operation.