IT giants look at Bhutan for investment

If things go according to plan, Bhutan could well become an important IT hub with giants like Infosys, Genpact and Microsoft evincing keen interest to set up BPOs and data centres in the Himalayan country.

Around 30 leading IT firms from India held strategy meetings here recently to explore investment possibilities in Bhutan.

The IT leaders said that Bhutan can play host to an array of possibilities like data centre operation, disaster recovery centre, BPOs and software development centre.

"We are looking at Bhutan as a good destination for investment," said Infosys Board Chairman NR Narayana Murthy.

He said this was a reconnaissance trip and "that is how you start building a relationship, once you start appreciating the country and good things in the country, possibilities start coming before your eyes".

On the chances of a small country like Bhutan being an IT destination, Murthy said they are good as Infosys itself had started with seven people but was now worth nearly $5 billion.

"Apart from formulating our long-term IT strategy what we do is visit new countries which could potentially be partners to India. I think we can work together with Bhutanese companies or even help Bhutan to set up ICT industries," Nasscom Chairman Ganesh Natarajan said.

A NIIT centre was launched at the campus of the Royal University of Bhutan to train 1,000 IT students over the next two years. Murthy also offered 100 seats at the Infosys Institute in Bangalore for "intensive training" of Bhutanese students for six months.

"The warm welcome, political stability, clean environment, cheap power and upcoming accessibility with domestic airports have been noted as plus points and they will be getting back to us soon" said Information and Communication Minister Nandlal Rai.

Director of Information Technology Tenzin Choeda said, "There are no fixed guarantees right now, but many doors have been opened for us. Microsoft expressed interest to help Bhutan in terms of education and possibly to set up data centres."

Nasscom President Som Mittal said, "It needs to be a step by step process and there are ideas in how we can help in training, putting in some curriculum in the university and also see if Bhutan can be a base for data centre and also BPO possibilities."

Gen Pac, which is a major BPO player in India, has expressed the most interest in setting up an operation base in Bhutan.

According to sources, the Gen Pac deal has a good chance of materialising.

Bhutan's IT department, meanwhile, is working on its broadband master plan and said that international level connectivity could be set up for interested companies by mid-2009 as per an evolving deal with Tata Infocom.