Snubbed by software firms, Shivamogga IT park to woo insurance, banking cos

Following lukewarm response from IT companies to set up branches in the IT park at Machenahalli Industrial area here, the Shivamogga District Chamber of Commerce & Industry (SDCCI) and Keonics have shifted their focus from IT bigwigs to insurance companies and banking sector.

The Karnataka State Electronics Development Corporation Limited (Keonics) constructed the IT park here at a cost of Rs 12.73-crore on a five-acre park a few years ago. Despite several attempts by Keonics to woo major IT companies to set up their branches in Tier-II city like Shivamogga, their efforts failed to produce the desirable results. Hence, of the 75,000 sq ft work space in the IT park, only 38,000 sq ft has been allotted to eight companies including Crossdomain so far. Most of them are BPO companies.

Realising this, SDCCI has made arrangements to hold an investors’ meet in Bengaluru this month.

Speaking to Deccan Herald , SDCCI President D S Arun said: “We have already held talks with top companies of service and banking sectors with the sole intention of bringing them to IT park in Shivamogga.” As part of it, Ernst & Young Senior partner Shashikumar visited the city recently to conduct a survey of the district.

Ernst & Young is a multinational professional services firm headquartered in London, United Kingdom. It is one of the big audit firms and is the third largest professional services firm in the world.

“We are committed to providing required manpower and resources to the companies keen to set up their branch in Shivamogga. The recurring expenditure is less here when compared with city like Bengaluru. Besides, we have held talks with natives of Shivamogga working in Bengaluru in banking and  insurance sectors. They are willing to come back here and carry on their work. They are fed up with city life. Around 200 youths from Mattur village near Shivamogga who are working in Bengaluru have accepted in principle to work here,” he added.

Maruti, manager of the IT Park, said, “Response to investors’ meet in Shivamogga was not overwhelming. Now, the efforts are on to bring Bengaluru-based companies to set up their branches here. We have fixed Rs 5 per sq ft for IT companies and Rs 15 for non-IT companies. We are ready to negotiate with the companies that are keen to come down to Shivamogga. We would consider their demands without fail.”