K'taka software exports up 36%

State's share moves up 3.1 per cent to 37.6 per cent in FY06

Come rain or shine, or for that matter, the occasional Deve Gowda or mobs, Bangalore's status as a prime centre for IT outsourcing remains intact. Karnataka has logged in a software export growth of 36 per cent to touch Rs 37,600 crore for the fiscal ended March 31, 2006, up from Rs 27,600 crore during last fiscal. Of this, Bangalore alone accounts for close to Rs 36,500 crore.

With India's total software export for FY06 at a little over Rs 1 lakh crore, Karnataka's share works out to 37.6 per cent, up from 34.5 per cent during FY05. On the hardware front, the state achieved a growth rate of more than 40 per cent to touch Rs 2,481 crore for FY06, taking the total IT exports from the state to Rs 40,081 crore. Of this, BPOs contributed 16 per cent.

During the year, around 70,000 jobs were added and the state is looking at IT exports of Rs 49,000 crore during FY07. Secondary cities such as Mysore and Mangalore too recorded 30 per cent plus growth, touching Rs 392 crore and Rs 570 crore respectively. Karnataka is looking at exports of Rs 600 crore from Mysore during FY07 and Rs 1,000 crore from the Manipal/Mangalore region during the current year.

According to Software Technology Parks of India, this growth was made possible mainly through the organic growth of major software companies, in addition to the efforts of newcomers. Another significant factor is that many new global markets have opened up to IT outsourcing, leading to exports to many European, African and South East Asian markets.

Announcing these details, M K Shankarlinge Gowda, Secretary - IT & BT, government of Karnataka, said, "Karnataka is still the preferred destination for investment by multi-faceted national and international business houses. The IT industry is ahead of all with the most significant contribution in terms of investment and growth."

He further added that the state was working all out to ensure that tier II cities achieve exports of $1billion each by 2010. "This is part of the strategy to achieve exports of $20 billion by 2010."

Added B V Naidu, director, Software Technology Parks of India (Bangalore & Hyderabad), "Karnataka continues to sustain its previous year's record of attracting a good number of companies. More than 200 new software units (124 overseas) were added during FY06, further enhancing the investor's confidence in the state."

He added that around 200 existing companies expanded their operations in Karnataka, reflecting consistent growth, while seven new hardware companies were approved to set up their units here.