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Why Kerala is good for IT ITES Companies

Kerala is rich in resources and the people of this south Indian state are resourceful. This is a golden combination for creating a workforce that gives results. Out of the many thriving industries in Kerala like tourism, chemicals, fisheries, and more, the IT and ITES have been a new addition to the list. The National Association of Software and Service Companies (NASSCOM) rated Kerala as the second-best location for IT related services and IT-Enabled Services (ITES).

It is no surprise that the high literacy rate of the state is a major driver in industries like IT that require highly skilled labour. But let us look at a few more reasons why Kerala is good for IT ITES companies.

Education and literacy

As stated earlier, the high literacy rate in Kerala is a boon for IT-ITES companies. But most of this skilled labour seeks opportunities in the Middle-East. This leaves a ripe opportunity for IT companies to draw the talent with lucrative salaries. The presence of highly-rated government colleges like NIT, Calicut, College of Engineering, Trivandrum, SET College of Engineering, and many more churn out talent that can be strategically utilised. This also comes with relatively high proficiency in English communication which is a key skill in IT-ITES companies.

Government support

Software Technology Parks of India (STPI) established by the Indian Ministry of Electronics and Information Technology with the objective of “encouraging, promoting and boosting” the export of software from India. Omkar Rai, the ex-Director General of STPI has said that the government envisions India as a software product nation worth $80-90 billion by 2025 and STPI is spearheading that goal. In the 2020-21 financial year, STPI units under STPI-Thiruvananthapuram jurisdiction contributed Rs. 3,884.57 crore software exports and the number has only grown with time.

Encouraging eco-system

The IT industry in Kerala is also supported by private players like Bequip Advisory whose vision is to serve the nation by strengthening the functioning of business firms that will help them remain profitable as well as sustainable in the long run. Such companies help small businesses scale up and expand to international horizons. With two centres in Kerala – Trivandrum and Ernakulam – Bequip Advisory is exactly the kind of support system your upcoming IT company needs.

Expanding infrastructure

With 4 airports and 20 seaports, Kerala is well-connected to the rest of the world. This strategic geographical placement is a cost-cutter for IT companies that are on their way to a scale-up. The ongoing expansion by STPI in Thiruvananthapuram and Ernakulam will house modern amenities needed for the start-up ecosystem. IT-ITES companies will benefit from the 150 and 200 plug-n-play seats in Kochi and Thiruvananthapuram respectively.

All these factors, combined with the dynamic socio-economic landscape, have set Kerala on the path of expansion and IT companies are already lining up to join this path.

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