Press Releases: Report on the Performance of Software / Hardware Export Industry in Karnataka & STPI, Bangalore
PRESS RELEASE Dated: 23rd April, 2003

In the present dynamics of the global economy, many of the corporates world-wide are looking at outsourcing in India as a part of their strategy to maintain their competitive position and increase their profits. Inspite, of the slow down of the global economy and as well as pressures on the Billing rates that are experienced by the Indian Companies, Karnataka software exports have shown growth rate of 25% over the last year touching around Rs.12,350 crores.

Bangalore, the fourth largest technology hub in the world is continued to attract more IT companies. Around 116 in Software Exporting Companies and 4 new Electronic Hardware Exporting Companies have registered with STPI during the year 2002-2003, which is more than last year.

  • 79 Companies with 100% foreign equity are registered with an investment of around Rs.1,025 crores, which is significantly higher than last year.
  • BPO sector is fast growing with 41 new BPO Companies approved, and exports from BPO/ITES have grown by 275% from last year touching Rs.988 crores. This constitutes 8% of the overall exports from Bangalore. This sector presently employs more than 18,000 people.

The Electronic Hardware Technology Park (EHTP) Companies have also shown the excellent growth with the overall hardware exports achieving Rs.1, 404 crores with the growth rate of 67% compared to the previous year. In addition to the growing hardware sector in health care / consumer electronics and other office automation products, automobile sector also shown growth in this area from Karnataka.

While Bangalore has still maintained its lead, the other cities Mysore, Mangalore, Manipal in Karnataka are also fast growing. The incubation facilities and the decentralized Datacom and Statutory Services through STPI Centers in these cities have helped the industries to show an export growth of 66% in Mysore and 36% from Mangalore / Manipal.

"During the present global recession, the export growth rate of 25% to touch Rs.12, 350 crores is phenomenal and once again Bangalore has maintained its leadership position in the country. This growth infact can be equated to 35% because of lower billing rates when compared to few years back. " Said - Mr. B.V Naidu, Director, STPI-Bangalore.

"The quantum growth of the foreign equity companies, BPO companies and the growth of their investments in Bangalore reiterates the global image attained by Bangalore", Mr. Naidu Said.

"While Bangalore has grown by 25%, the growth rate of 66% at Mysore and 36% at Mangalore are quite satisfactory to the Government of Karnataka which symbolizes the IT exports are already spreading to the secondary cities in the Karnataka." Said Mr. Vivek Kulkarni, Secretary-IT, Govt. of Karnataka.

While the IT services sector is re-positioning, the 275% growth in the BPO sector is a welcome sign for Bangalore." Said Mr. Kulkarni.