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Rail Budget : On Track with IT
While the latest railway budgets focus on IT is good news for passengers, its also a business opportunity for IT companies
Sudesh Prasad
Saturday, March 08, 2008
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For Lalu Prasad Yadav, the Indian Railway Minister, who does not forget to mention how he crowds at having impressed the Harvard and IIMA by his turnaround story, the latest Railway Budget is in line with, and the reflection of, the new thinking in the Ministry of Railways. This is probably the first time a Railway minister has devoted so many words and pages leveraging IT for betterment of the railways infrastructure. Whenever we talk of Indian railways, the use of IT stops at the most important two recognized innovations that the railways have yet undertakenthe computerized reservation system, and the online reservation system through www.irctc.co.in.

The announcements in the budget, hinting at large-scale usage of IT technologies, have come as enchanting music to the IT companies, particularly the Indian players. Some of the companies like Infosys, which have had less focus on the domestic market (it created India Business Unit sometime back) uptill now, are seeing this as a good opportunity and are raring to be part of the initiatives. According to Balakrishnan V, CFO, Infosys Technologies, The railway budget points to a large-scale modernization of the railways architecture of which an integral component is IT. The gamut of opportunities within IT could cover digitization, freight management, ticket processing over the mobile, alternative delivery systems, and optimizing and upgrading IT-infrastructure. This is a great opportunity for Indian IT players, like Infosys. We have a dedicated integrated business unit which is focused on Indian markets and we will be actively participating in some of these opportunities.

Echoing similar sentiments, Ranjan Tayal, India Head, Satyam says,The increased focus on leveraging the benefits of IT is heartening. In fact, the Railway Ministry is looking at IT as a strategic tool. IT partners need to engage not just at a service but at a solutions level as well. The scope of work now goes beyond just implementing IT frameworks to post-deployment services like enterprise-wide roll-out and maintenance.

According to reports, Satyam is in talks with the Indian Railways for three to four information technology outsourcing deals worth Rs 10 to 20 bn. The deals include those for asset management services, ERP, RFID, Commercial portals, etc.

Not only IT companies, even telecom services providers and equipment vendors are eying a slice of the pie considering some of the initiatives like ticket booking through mobile, providing internet connectivity on the trains, and improvement in the communications infrastructure.

In fact, things have already started working at the ground level. It is no surprise that issue of tender for development, implementation and commissioning of the commercial Web portal of Indian Railway, has already taken place (it is available on the newly designed www.indianrail.gov.in website) and the government has been requested to include development, implementation and commissioning of the IR commercial Web portals as well. It is suggested that this will give consolidation to the Indian Zonal Railway and related web sites, with search and remote content management facilities and developed journey planning, e-ticketing, frequent travelers and e-auctioning of passenger reservation tickets, e-auction of empty rakes in reverse routes, retiring and cloak room booking, and above all addressing passenger complaints.

While online ticketing and computerized reservations have been a tremendous success, what passengers now expect, apart from other things, is real time information dissemination on the railway station, the train, and punctuality. And while the Railways is still finding it relatively tough to compete with the low cost carriers, it has yet to learn how to keep the passengers well informed before and during the period of travel. It seems a most sensible decision that such issues be left to the expertise of the IT companies which can deal in such matters with much more precision and ease. These changes, as prescribed by the Railway Minister himself, seem to be bringing in a new and thoroughly reformed Railways for the public. One can also dare to comment that the Railway Minister who oft-repeated his comment, IT YT Kya Hai, now looks like a transformed man.

Sudesh Prasad
sudeshp@cybermedia.co.in

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