Despite outsourcing concerns in West -
Software exports from Karnataka at record high

Published in Business Line dated 02/06/2004

Mr B.V. Naidu, Director, Software Technology Parks of India, (left) and Mr K.M. Shivkumar, Principal Secretary for IT and BT, Karnataka Government, at a press conference in Bangalore on Tuesday. - G.R.N. Somashekar

Bangalore , June 1

SOFTWARE exports from Karnataka have grown by over 46 per cent to record a high of Rs 18,100 crore during 2003-04.

Announcing this at a press conference here today, the Director of Software Technology Parks of India (STPI), Mr B.V. Naidu, said that Bangalore continued to attract more IT companies. Foreign companies with 100 per cent foreign equity numbered 110 in 2003-04 and invested a total of Rs 1,970 crore in the State during the year.

"Clearly, despite the reservations about outsourcing in the West, Bangalore and India are attractive destinations for outsourcing software and ITES/BPO activities,'' said Mr K.M. Shivkumar, Principal Secretary for IT and Bio-Technology, Department of Information Technology, Karnataka.

There has been aggressive growth in investments in the ITES/BPO sector, said Mr J. Parthasarathy, Additional Director, STPI-Bangalore, with Rs 1,916 crore invested during the year, compared with last year's Rs 512 crore. The ITES/BPO sector employs about 60,000 people, with the sector contributing over 13 per cent to the total export kitty.

Hardware exports under the EHTP (Electronic Hardware Technology Park) scheme grew 21 per cent to touch Rs 1,700 crore, said Mr Parthasarathy, adding that new investments were expected to be announced soon.

STPIs in other cities in Karnataka too were doing well, with Mysore clocking Rs 180 crore and Mangalore/ Manipal registering Rs 456 crore in exports.

Mr Naidu said that pressure on ITES sector on the recruitment front will be eased as more secondary cities and the STPI parks speed up. He added that the STPI was working with the Government in improving training standards for graduates and potential employees in the sector.

STPI's international communication services and Internet grew during the year as did its new technical consultancy services - with projects for the Central and various State Governments, and e-governance projects, Mr Naidu said.