Software exports slump likely in state

Software exports slump likely in state



Express News ServiceFirst Published : 06 Mar 2009 04:28:00 AM ISTLast Updated : 06 Mar 2009 12:42:01 PM IST
BANGALORE: This financial year, the software exports of Karnataka state, including ITES is expected to come down by 5 percent as compared to last year, according to a top government official in the department of IT/BT.
Principal secretary for IT and BT, Ashok Kumar Manoli, after participating in the launch of Association of Business Executives, London's International management programmes in Bangalore, told press persons on Thursday that the state which had totalled an IT/ ITES export of Rs 56,500 crore in the last fiscal year (2007-08) is expecting a 5 per cent drop in its software export revenues this financial year.
‘‘The first and second quarters have been good, however, the third quarter was not that encouraging and the fourth quarter needs to be closely watched,” he said.
According to the secretary, the voice-based BPO segment is under great pressure.
There are about 1.5 to 2 lakh IT professionals in Bangalore alone, he said. In spite of the grim economic situation, the plans to build IT parks in tier II and tier III cities on a public private partnership basis is on, he said.
During his speech, he also mentioned that the Small and Medium Enterprises dealing in IT and related services are struggling and a good management strategy is needed to sustain operations.
When questioned about the governments reaction to mass layoffs in the IT/ ITES sector, he said that there have been no mass layoffs.
While companies are facing the crunch, the pressure on verticals have increased.
While the idea of getting more work done per head is being mooted and software companies are cutting costs the companies are also exploring new markets, he said.
He also said that although companies might be forced to consider a delay in future investments, there has been no change in the plans of companies which have been already cleared.