25 October, 2007

Karnataka attracts 1 IT firm every 3 days

The poor infrastructure and a lack of support from the state government notwithstanding, Karnataka, especially Bangalore, continued to be the premier IT-destination in the country.

During the six months period in the present fiscal, as many as 70 firms either started their operations or expanded to newer locations in the state, Software Technology Park of India (STPI) sources said.

To be precise, this entails investment by at least one company every three days in the state. The noteworthy point is that of these companies, about 32 are global firms, mostly from the US and Europe who together brought in foreign direct investment of close to Rs 1,000 crore into the state.

The companies were mostly in the enterprise IT, telecom and animation space, J Parthasarathy, director, STPI-Bangalore said. During the same period in the previous fiscal, the state has attracted investments from 65 companies.

The state also saw a 22% rise in the IT exports (including IT & ITeS) to Rs 19,500 crore, during the six month period-ended September 30. Bangalore contributed about 90% of the IT exports from the state.

From human resources point of view, IT firms operating in the state added about 30,000 people during the last six months which took the number of IT professionals in the state to 430,000.Meanwhile, the Karnataka government has allotted land to the STPI in Mysore and Gulbarga, to start incubation centres.

STPI is already operating incubation centres in Bangalore, Mangalore and Hubli. Parthasarathy said STPI has also reduced bandwidth prices by 40% for companies operating in STPI units, to help them maintain their edge in spite of the Rupee appreciation and certain other factors. This will especially be helpful for the small and medium companies, who are not properly prepared to maintain their margin in the wake of rupee appreciation, he added.

The 10th edition of the country's premier IT and telecom event is going to start from October 29 at the Bangalore International Exhibition Centre on Tumkur Road in the city. Over 200 companies, about 60% of which are global firms are expected to participate in the three-day event. Besides, delegations from over 20 countries including Germany, Australia, Canada , China, Taiwan, Japan and UK among others have also given their consent to participate in the event.