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E-governance projects to benefit SMEs
By siliconindia
Bangalore: The e-governance projects of the Central and state governments can help the small and medium enterprises (SMEs) in the IT and ITeS segment to come out of the current financial crisis. According to Business Standard, the Federation of Indian Chambers of Commerce and Industry (FICCI) is also planning to ask the government to reserve some e-governance projects for SMEs.
Industry sources say that projects worth over $14 billion (
70,000 crores) including e-governance and technology upgrades by various public sector entities have been initiated in the country. Arun Ram, a member of the Tamil Nadu government's IT and Communications Task Force has said that even if 10 percent of the project is reserved for SMEs, it would make a big difference to them. A few state governments including Tamil Nadu, Andhra Pradesh and Gujarat have started allocating projects to SMEs.
Tamil Nadu government is executing several e-governance projects and upgrading technology in various departments through the Electronic Corporation of Tamil Nadu (ELCOT). The state's IT Secretary, PWC Davidar, said 15 percent of these projects have been taken up by SMEs.
Ram, who is Chairman of the Chennai-based Valingro Group, and a member of FICCI's executive committee, said the government's unique identity project is a $8 billion ( 40,000 crores) programme, apart from which the Central and state governments are expected to spend around $10 billion over the next five years on e-governance projects and on upgrading their technology. Of this, India Post, Indian Railways, Life Insurance Corporation and other state entities alone are expected to spend $6 billion.
The participation of SMEs in these projects will not only be cost-effective, it will also generate more employment opportunities. Companies like Ascenders Technologies, a Chennai-based IT services firm, have come out with new solutions for such initiatives. T Thirugnanam, a Director of Ascenders Technologies said, "SME products are 30 percent cheaper than those of larger companies." The company has introduced smart cards for regional transport offices (RTOs), health care providers and education institutions.
70,000 crores) including e-governance and technology upgrades by various public sector entities have been initiated in the country. Arun Ram, a member of the Tamil Nadu government's IT and Communications Task Force has said that even if 10 percent of the project is reserved for SMEs, it would make a big difference to them. A few state governments including Tamil Nadu, Andhra Pradesh and Gujarat have started allocating projects to SMEs.
Tamil Nadu government is executing several e-governance projects and upgrading technology in various departments through the Electronic Corporation of Tamil Nadu (ELCOT). The state's IT Secretary, PWC Davidar, said 15 percent of these projects have been taken up by SMEs.
Ram, who is Chairman of the Chennai-based Valingro Group, and a member of FICCI's executive committee, said the government's unique identity project is a $8 billion ( 40,000 crores) programme, apart from which the Central and state governments are expected to spend around $10 billion over the next five years on e-governance projects and on upgrading their technology. Of this, India Post, Indian Railways, Life Insurance Corporation and other state entities alone are expected to spend $6 billion.
The participation of SMEs in these projects will not only be cost-effective, it will also generate more employment opportunities. Companies like Ascenders Technologies, a Chennai-based IT services firm, have come out with new solutions for such initiatives. T Thirugnanam, a Director of Ascenders Technologies said, "SME products are 30 percent cheaper than those of larger companies." The company has introduced smart cards for regional transport offices (RTOs), health care providers and education institutions.
