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Though a late entrant to the planning process, Goa has emerged as one of the
most developed states in India. It has even achieved the ranking of one of the
best states in India with regards to investment environment and infrastructure.
In the last few years, the State government has been promoting information
technology in all possible ways. The Cyberage scheme implemented by the State
for the student community is an example of how keen the government is in
promoting PC penetration. Around 15,000 PCs were given away last year to
students at an extremely subsidized rate.
The uniqueness of the scheme was well received. While the State has been
overfriendly with its policies to promote IT, there were dark sides to it on how
the scheme was implemented.
According to many Goans, entrepreneurship was killed because of this scheme.
The total size of the PC market in Goa excluding the Cyberage scheme is put at
around 8,000 to 10,000 PCs in a year. "And when the government dumped over
250 PCs in the market, what can the channel community sell?" asks a PC
dealer.
The government justifies it by saying that in years to come, these PCs will
increase the market for upgrades and peripherals. But, how long can partners
wait is the question.
Recently, there were indications from the new Government about reviewing the
Cyberage scheme, according to some newspaper reports. Which means, the scheme
may be discontinued if the government does not find it beneficial for IT growth.
There are over 200 channel partners serving Goa's entire IT hardware and
basic software needs. Of this, only about 100+ are active partners. Of these
100, less than 10 partners are in to solutions providing, with revenues ranging
from Rs 1 crore to Rs 4 crore. The rest all are under the 1 crore revenue
bracket.
The customer segment is generally divided in to SOHO, corporates and the
Government. Majority of partners look for business from the SOHO segment.
Students and small business make a good chunk of the SOHO business. The purpose
of PCs is mainly for education and Internet usage.
Only a few cater to the corporate and the Government segment. Most
Government deals involve the participation of vendors and a handful of
distributors directly. Customers in the corporate segment are mostly banks and
industries.
There are quite a few industries in Goa. But all these have their
headquarters in Mumbai and hence the procurements of IT infrastructures are
usually done from Mumbai itself. This area is not very lucrative for the
channels. However, partners still have an option of servicing these companyies'
IT infrastructure.
2004-05 was rather slow for PC business compared to the previous fiscal
according to channel partners. This was because of the Government involving
direct business from vendors and suppliers under the Cyberage scheme.
Goa cover an areas of 3,702 square kilometers. Despite its tiny size, it has
some of the best IT infrastructure. The presence of Software Technology Park,
excellent public utilities, and good broadband connectivity, make this place an
ideal destination for IT investors. Goa is also rated amongst the most literate
states in the country.
A very striking feature of Goa is the harmonious relationship among various
religious communities, who have lived together peacefully for generations. It is
also known for its tourism, which attracts people from all over the world for
its scenic beauty of coastal regions. The only sad part is that, despite its
best IT infrastructure, nobody has taken the initiative to make use of IT for
promoting tourism actively to the world.
Next Page : ASSOCIATION PROFILE: Goa IT Business Association (GIBA) Page(s) 1 2
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