How this IT Park in Kerala is creating a smart, scalable infra for digital-first businesses

Kerala-based Uralungal Labour Contract Cooperative Society (ULCCS), which is Asia’s largest cooperative society, is set to launch the next phase of its UL CyberPark in Kozhikode, building on the success of its first phase, which currently employs 2,700 employees.

Following the completion of phase two, 84 firms, including major IT companies and startups, have expressed interest in establishing operations there. These technology companies are projected to generate new employment, advance emerging technologies, and enhance business scalability, solidifying North Kerala's position as an IT hub.

T.K. Kishor Kumar, chief operating officer (COO) of UL CyberPark, told TechCircle, that phase II is expected to be operational by FY28. “We have received confirmation from 44 companies and over 40 start-up companies, including major IT firms such as Tata Elxsi, QBURST, BlackHawk, Kerala Startup Mission, and ICT Academy of Kerala, among others,” he said.

According to him, these firms will invest approximately ₹100 crore, potentially more, in technologies such as artificial intelligence (AI), robotics, web and mobile application development, fintech, and digital marketing. “Phase II is anticipated to add 800 more personnel in a single shift, and with the park operating on a three-shift basis, we expect to create 1,500 more job opportunities,” said Kumar.

Furthermore, Kozhikode was selected as the location due to the availability of a skilled talent pool, strong connectivity, and robust infrastructure. Over the past nine years, UL CyberPark has grown from 20 to 2,700 employees. Phase II is expected to significantly boost Kerala's economy and employment, believes Kumar. As of December (Q3 FY25), UL CyberPark's export turnover stood at ₹162 crore, with cumulative exports exceeding ₹408 crore. The expansion will attract global and national IT firms, further establishing Kozhikode as a tech hub. This will lead to increased software exports, enhanced GDP, and improved foreign exchange earnings.

According to Kumar, thousands of direct and indirect jobs will be created in software development, AI, data science, cybersecurity, IT support, hospitality, retail, and transportation. “The project will also foster entrepreneurship by providing space for startups and SMEs, stimulating innovation and reducing the talent drain to larger metropolitan areas by creating attractive career options in north Kerala,” he said.

UL CyberPark is further integrating emerging technologies like cloud-enabled workspaces, high-speed connectivity, IoT-driven building management, and AI-powered operations to create a smart, scalable infrastructure that supports digital-first businesses. The park prioritises sustainability through green IT practices and encourages collaborative innovation, aiming to be north Kerala's leading IT hub, said Kumar.

In recent years, Kerala has made significant strides in IT park development, with prominent parks like Technopark in Thiruvananthapuram, Infopark in Kochi, and Cyberpark in Kozhikode, along with plans for new parks in Kannur and Kollam.

A report published by the MSME Export Promotion Council  in January 2024 shows that there has been a 31 per cent growth in the number of IT professionals in Kerala in the last six years. From 78,000 in 2016, the number of IT professionals in the State has grown significantly to 2,50,000 in 2023.

Furthermore, the Indian software product industry is expected to reach $100 billion by 2025, and the State government is focusing on tapping the opportunity. Many of these companies are investing overseas to expand their global footprint and enhance their global delivery centres.