To facilitate and enable the development of a thriving market for IT/ITES (Information Technology/Information Technology Enabled Services) entities and technology startups in Kerala, specific reforms in public procurement of IT and E-Governance projects should be considered.

• Simplified Procurement Procedures: Streamline and simplify the procurement procedures for IT projects to reduce bureaucratic delays and promote a more agile process. This could involve standardizing requirements, prequalifying vendors, and creating a single window for IT procurements.
  
• Thresholds and Special Provisions: Establish appropriate financial thresholds for all IT projects below which the process can be expedited. Additionally, consider special provisions for startups and small IT companies, such as setting aside a percentage of contracts for them or relaxing certain eligibility criteria.
  
• Emphasis on Quality and Innovation: Shift the focus of procurement from a purely cost-based approach to one that emphasizes quality, technical competence, and innovation. This encourages IT vendors to offer more innovative solutions, which can lead to better outcomes for government projects.
  
• Flexible Contracting Models: I need more input here from IT contractors, but I feel introduction of more flexible contracting models, such as outcome-based contracts, that allow the government to pay based on results achieved rather than just outputs delivered. ( Eg: The failure of Kochi Corporation project for their portal) Incentivize IT companies to perform at their best to meet the desired outcomes.
  
• Transparent and Open Bidding Process: Ensure that the procurement process is transparent and open to all qualified IT companies. Publish procurement opportunities, evaluation criteria, and contract award information on a centralized platform specifically for IT projects and procurements, making it accessible to all potential bidders.
  
• Leveraging Technology: Utilize technology-driven platforms for procurement processes, such as e-procurement systems. These platforms can improve efficiency, reduce paperwork, and enhance communication between the government and vendors.
  
• Capacity Building and Training: Invest in capacity building and training programs for government officials involved in IT procurement and IT project management. This will enhance their understanding of the IT sector, its requirements, and the latest technological advancements.
  
• Preference to Local IT Companies: Consider providing preferences or incentives to local IT companies based in Kerala, encouraging them to participate and contribute to the state’s IT growth. Encourage IT companies to tie-up with firms outside the state who have experience and expertise in the same.
  
• Regular Market Engagement: Engage with the IT industry regularly to gather feedback and understand market trends. This will help in aligning procurement requirements with the capabilities and innovations available in the market.
  
• Performance Evaluation and Feedback: Establish a system for evaluating the performance of IT vendors after project completion. Providing feedback to vendors on their performance can foster improvement and healthy competition among them.
  
• Standardized Contract Templates: Develop standardized contract templates for IT projects, making it easier for both government agencies and IT companies to understand and negotiate terms.

By implementing these reforms, Kerala can create a more conducive environment for IT companies to participate in public procurement and contribute to the state’s growth in the IT sector. The government’s willingness to embrace new technologies and innovation in its procurement processes will play a crucial role in attracting and retaining IT/ITES entities, thereby boosting the state’s IT ecosystem.