"It's a welcome move as it will attract more IT professionals to Indore," feels Infobeans CEO Siddharth Sethi. Other IT companies such as Impetus and Cybertech share similar view.
One major reason why existing IT companies don't fear exodus of employees is that salary structure in smaller IT companies is much better than what the IT majors pay.
While IT majors have a bigger brand value, the salaries are typically about 30% lower. Entry level salary in local IT companies is in the region of Rs. 4.5 to 5.5 lakh per annum while that in TCS or Infosys is in the region of Rs. 3.5 lakhs.
Both TCS and Infosys have signed a memorandum of understanding (MoU) with the state government for setting up their development centre in Indore. Infosys has signed a MoU with the state government for a project spread over 130 acres on the super corridor. Tata Consultancy Service (TCS), on the other hand, plans to set up a development centre on 100 acres. While Infosys proposes to invest Rs. 450 crore, TCS has signed a MoU worth Rs. 410 crore during the recently concluded global investors meet.
The district administration has also handed over 108 acres of government-owned land at Simhasa village to the IT department, which will encourage investments by mid-sized players in the information technology sector.
The land is likely to be allotted to smaller IT firms that have been seeking government land. In fact, out of 32 MoUs signed during the recently concluded global investors meet, 28 MoUs were signed with mid-sized and small IT companies.