Gujarat IT exports clock slow growth in H1 of FY '13

US, Canada and European countries have not offered projected growth in IT exports

Despite rupee strengthening against dollar since the beginning of the current fiscal 2012-13, IT small and medium enterprises (SMEs) in Gujarat have not seen much growth in exports, especially from western markets.

Markets like the US, Canada and European countries have not offered the projected growth in IT exports for the firms in the state till the first half of the current fiscal. However, SMEs are hopeful that second half may improve things for the industry.

"Growth has been slower than what the IT industry in Gujarat had projected, especially from western markets. We had expected a growth rate in terms of volume of 20 per cent but exports have been only to the tune of 10 per cent. However, the momentum might pick up in the second half of this year," said Rajan Vasa, CMD, Contech BPO Services Pvt. Ltd.

According to industry players, things might have been slow due to the ongoing election process the US too. "Outsourcing contracts for IT in Gujarat may increase in the second half once the elections are over. However, as an industry, we expect the exports to be up from last year's Rs 1,500 crore to close to Rs 2,000 crore this fiscal," Vasa added.

Similarly, for Azure Knowledge Corporation Pvt. Ltd. which had expected a 30-35 per cent growth in exports from US, Canada and European markets, saw only a 10 per cent growth till the first half of the current fiscal.

"We had expected a 30-35 per cent growth rate in exports across regions including North American, European and Asian markets. Of these, only Asia Pacific (APAC) has grown beyond our projections to clock 55 per cent while others have done only 10 per cent," said Jay Ruparel, co-founder of Azure.

Meanwhile, in terms of turnover, the Ahmedabad-based knowledge process outsourcing (KPO) company had expected a 40 per cent growth whereas it now projects only 15 per cent to end the fiscal at $ 15 million (Rs 82.10 crore approx.) as against $ 13 million (Rs 71 crore roughly) in fiscal 2011-12.

"While the growth may increase in January to March of this fiscal, the true results will be seen only in the early next fiscal," Ruparel added.