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IT exports in Gujarat grow at 15% for Q1

Vinay Umarji  |  Mumbai/ Ahmedabad 

After IT exports remaining almost stagnant last year in Gujarat, the industry expects the numbers to rise again. Small and medium IT firms in the state have been registering growth in their exports by 10-15 per cent.

According to industry players, the first two quarters of the fiscal 2011-12 have shown signs of improvement in exports. This, in spite the fact that IT exports in Gujarat (as per state STPI) hovering around Rs 1200 crore for the last two years.

"Last couple of years IT exports in Gujarat have more or less remained stagnant. Before that it increase from Rs 500 crore to Rs 1,200 crore. However, with international markets softening and global meltdown continuing it has stayed at that level. Nevertheless, now we seem to be growing by 10-15 per cent in terms of exports," says Rajan Vasa, CMD of Ahmedabad-based Contech BPO Services Limited.

Even a leading KPO like Motif Inc. has seen moderate to positive responses growing from among its global clients. "We are cautiously optimistic about exports. There is a good sign with more interests coming in not only from existing customers but also new ones," says Kaushal Mehta, co-founder and chairman, Motif Inc.

Primarily, IT exports in Gujarat have begun to grow on the back of improved market conditions internationally.

However, industry players are also bullish about the domestic market which has been growing at a faster pace than exports. "As against a 10-15 per cent growth in IT exports, domestic markets have been increasing by 25-30 per cent. That is because of demand within and outside Gujarat growing since last few months. So while stagnated exports had been a concern for IT industry in Gujarat, a bullish domestic market has set the cash registers ringing," adds Vasa.

Meanwhile, according to Nirav Shah, director, Jayatma Informatics Pvt. Ltd. it is the new age in which most of the growth in the IT sector is taking place in Gujarat. "Business for the IT industry both from domestic as well as overseas customers is primarily being driven on the back of new age like cloud computing, infrastructure management and mobile applications," says Shah.

First Published: Tue, July 19 2011. 00:34 IST