|Press Releases: Software exports from State clock 33 pc growth|
Despite massive cuts in tech spending by the global corporations and gloomy economic conditions, software exports from Karnataka managed to record an impressive 33 per cent growth at Rs 9,903 crore during 2001-02 against the national average of 29 per cent announced by the Nasscom yesterday.
The exports were on "revised" target and reach Rs 10,000 crore after the final figures were compiled, Software Technology Parks of India (Bangalore) Director B V Naidu told reporters here today after giving out the details on Karnatakas software exports. Last year, the STPI had projected exports of Rs 11,000 crore for 2001-02 but had revised it to Rs 10,000 crore in the middle of the financial year against the backdrop of global IT slowdown.
He said the STPI had projected 40 to 45 per cent for the current fiscal as it expected recovery during the third and fourth quarters coupled with increasing revenues from IT-enabled services. Bangalore accounted for Rs 9,618.5 crore of the total figure, retaining its position of being highest contributor to the countrys software exports.
In Bangalore, 110 companies were registered during the last fiscal, 60 per cent of which were 100 per cent Foreign Equity companies. The capital investment attracted by the industry during the year accounted for Rs 1,383 crore, including Rs 892 crore in foreign exchange. The total number of companies located in Bangalore was 1038 against a mere 13 when the STPI was set up in 1991-92.
Exports from Mysore STPI which houses 24 companies rose by 30 per cent to Rs 39 crore last year as against last years Rs 30 crore achieved by 22 companies. The performance of Mangalore STPI was more impressive at 45 per cent with exports from 13 firms accounting for Rs 242.52 crore against Rs 167.14 crore achieved by 12 companies in 2000-01.
Infosys Technologies and Wipro with exports over Rs 1,000 crore continued to be top exporters, while among the foreign players IBM global Services and Digital GlobalSoft were top ranked. As many as 13 companies reported revenues of over Rs 100 crore and 95 companies in the range of Rs 10 crore and Rs 100 crore. Application software accounted for 37 per cent, telecom 18 per cent, System software 17 per cent and embedded software 7 percent.
Nearly 69 per cent of the exports were North America oriented with Europe and West Asia accounting for 21 per cent and five per cent respectively. Mr Naidu said despite the slump in the global market post September 11, the growth in the exports of foreign equity holding companies rose by 60 per cent to touch Rs 4,077.7 crore last year as against Rs 2543.33 crore recorded the previous year. "It is an indication that the foreign companies are looking towards more outsourcing in the present economic scenario," he said.
He said a significant development was the growth of IT enabled services companies with two of them figuring among the top ten small and medium enterprises. The IT-enabled service revenues which account for five per cent of the total exports from the State, would increase to 15-20 per cent during 2002-03 with many companies venturing into this sector, he added.
In the hardware sector, Karnatakas exports jumped to Rs 838.09 crore this year, up 128.27 per cent over the previous years Rs 367.14 crore. Medical equipment and telecom contributed 49 and 27 per cent respectively to the total exports. Wipro GE Medical Systems led the list. A total of 27 units were approved during 2001-2002 against 24 cleared during the previous fiscal.
Mr Naidu said with the growing competition, STPI has taken up new initiatives including provision of virtual private network across the globe, web housing and colocation services at the Electronics City here besides providing fibre-based Datacom services to North America, Europe and Asia.
State IT Secretary Vivek Kulkarni pointed out that the revenues had grown by 33 per cent despite the huge drop in billing rate during the last fiscal. "If these factors are taken into account, exports have grown by 50 per cent during the last year," he added.