Costly security

IT firms now find that CISF and other govt security is too expensive for them to manage

Costly security

Strict vigil: Security personnel check cars with metal detectors

IT firms now find that CISF and other govt security is too expensive for them to manage

Post terror attacks in Mumbai and Bangalore, IT behemoths talked of paying for security provided by the government.

But even as the CISF is preparing to provide security cover for the private sector, the IT firms, already hit by the recession, are backing off from the offer.

They find that paramilitary services come at a huge cost.

Rs 1 crore a month

Infosys is one of the applicants for the Central Industry Security Force (CISF), and it is estimated that the IT bellwether had to give Rs 1 crore per month for the service.

"The CISF services are provided on cost-reimbursement basis," said Digvijay Kumara Singh, CISF head at Bengaluru International Airport (BIA). "A company opting for the security cover has to pay for the salary of the CISF personnel apart from expenses like canteen and housing."

According to him Bengaluru International Airport Limited (BIAL) is spending over Rs 1 crore per month for CISF security with a thousand of their personnel deployed there. A rough calculation says, Infosys needs a similar force, having over 30 offices and nine development centers across the country calling for the high level security in the face of the terrorist threat.u00a0

Balancing act

A highly-placed source in Infosys said, " It is a huge cost that pinches at a time when we are facing the worst recession. But, we cannot compromise with the security. When the industries are facing difficulty in paying their staff, we have to pay salary for CISF staff. This calls for a tough balancing act."

Responding to industries' call, the Union government has tabled an amendment bill (section- 5 CISF Act), in the Parliament, to allow private sector to have CISF security cover. But it could not be passed, as time did not permit in the just concluded session. So the government has promulgated an ordinance that is due for the President's assent.

Tata Reliance, Oberoi are among others to ask for CISF security, and the paramilitary force is stepping up its staff strength by 10,000 to meet the demand.

"The fresh recruitment and training are expected to be completed in another six months," said Digvijay Singh. "The headquarters is preparing to send the platoons once the formalities are over."

Sharing costs

However, while the huge costs are becoming a deterrent, some companies are looking for ways and means to have cost-effective CISF security. Industry head honchos like Kiran Mazumdar Shaw have suggested a model wherein CISF will cover the industrial area, Electronic City for instance, and the individual companies will share the costs.

Small firms say 'no'

"The idea is good," said Deepak Murudeswara, security head at BIA. "It all depends on the requirements of the particular company. The cost can be shared, and service can be availed on a need base."

However, the small companies are apparently wary of the idea.

"Only big companies are facing terrorist threat as they are the main targets," said K Ganesh, founder and CEO of Tutorvista. "It is not fair to ask small companies to pay for the security of star companies."

It is to be seen how the IT industry strikes a balance.