Monday, January 22, 2007

K’taka IT rides the export crest

K’taka IT rides the export crest
Inflows To Cross $12.2 Bn In FY07, A Whopping 46% Over Last Year

The Economic Times

ALL the reports about traffic jams, infrastructure woes and IT companies expanding in other states notwithstanding, the IT state — Karnataka — is all set to outperform its projected target of $10.8 billion (Rs 49,000 crore) in software exports in the current fiscal. The state is expected to now cross $12.2 billion (Rs 55,000 crore) in FY07, a whopping 46.27% growth or Rs 17,400 crore over last year’s $8.3 billion (Rs 37,600 crore).
To give a perspective, the figure of $12.2 billion would be almost on par with what the entire Indian IT industry exported in the area of software and services in fiscal 2003-04 which stood at $12.9 billion (Rs 58,050 crore). Karnataka’s share in the national pie would also go up to 40% from the current 37% if the Indian IT/ITeS industry grows at the expected rate of 30% and reaches $30.42 billion in exports this fiscal. MN Vidyashankar, Karnataka’s IT secretary is confident of crossing the $12 billion mark, saying “we already have crossed $10.66 billion (Rs 48,000 crore) in software exports in December 2006.”
While Bangalore continues to be the Kohinoor in the crown, the tier II cities — Mysore, Mangalore, Hubli and Belgaum are doing well too. The IT secretary said that software exports from these cities are expected to double their share this year. In fiscal 2005-06, Mysore had an export value of $89 million (Rs 392 crore), Mangalore/Manipal $130 million (Rs 570 crore) and Hubli saw an export value of $1.11 million (Rs 4.92 crore). There were over 1,700 registered and operational IT/ITeS firms in Karnataka at the end of the last fiscal.

Infy,Wipro major contributors

HOWEVER, the two Bangalore-based IT behemoths — Infosys and Wipro Technologies, the second and third ranked IT exporters from the country, have always contributed a major part of Karnataka’s IT export kitty.
This year is no different. Infosys has given a revenue guidance of $3.09 billion for FY07, while its city peer is expected to close between $2.5-3 billion. According to industry experts, the huge growth being seen this year is a result of a shift by companies in Bangalore towards high-end and value-added services instead of just ADM or other basic streams.
This is despite the fact that Karnataka has been drawing a lot of criticism for its current laid-back approach towards the IT industry.


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