Hyderabad's IT exports cross $1 bn mark
42 foreign companies including NRI companies made an investment of Rs.3.07 billion

Hyderabad, June 11, 2004
IANS

IT exports from Hyderabad crossed the $1 billion mark during fiscal 2003-04, registering 37 percent growth over the previous year.

The exports from member units of the Software Technology Park of India (STPI), Hyderabad, during the fiscal year ended March 31 was Rs.50.25 billion ($1.11 billion) against Rs.36.68 billion ($811.75 million) last year.

This was seven percent higher than the average national growth of 30 percent.

Hyderabad ranks fourth in IT exports. Bangalore tops the list with Noida and Tamil Nadu are at second and third positions.

STPI director M. Vijay Kumar told a news conference Friday that 46.70 percent of the exports were in IT Enabled Services (ITES) against 39.16 percent last year.

STPI has fixed a target of Rs.70 billion in exports and 45 to 50 percent growth for the current fiscal that began April 1.

Exports through datacom facilities increased to 82.15 percent of the total IT exports from 79.26 percent last year. Onsite consultancy projects accounted for 17.63 percent and exports through physical media 0.22 percent.

He said the value of software exports through datacom facilities was likely to grow further with increased bandwidths, wide global reach, access to new markets and new geographies and increased outsourcing activity to India.

Of the total exports, Satyam Computer Services topped the list with Rs. 6.51 billion, followed by Wipro at Rs. 5.88 billion, GE Capital International Services at Rs. 4.55 billion and Infosys Technologies at Rs. 3.44 billion.

As in previous years, the bulk of the exports were made to the US and Canada (63.15 percent). Exports to Europe increased from 18.72 percent to 22.97 percent.

Australia, Britain, Japan and the Netherlands, as also countries in Asia and the Middle East, accounted for the remaining exports.

A total of 119 new units were registered with STPI Hyderabad during the year. Of 1,060 units, 860 were operating units. They employed 85,945 people as on March 31.

Accenture, CA Computer Associates, Cavium Networks, Computer Science Corporation, Continuum (Bank of America group), Convergys, Franklin Templeton and Invensys Development are among the companies registered during the years. STPI delisted 460 units during the years for various reasons.

The capital investment by IT companies during the year was Rs.6.84 billion.

Vijay Kumar said 42 foreign companies including NRI companies made an investment of Rs.3.07 billion while the investment by Indian companies was of the order of Rs.3.77 billion. The cumulative investment in the industry is Rs.35.53 billion.

With 19 companies registering themselves during the current year and many evincing keen interest to set up their operations, the investment is expected to grow manifold.

Set up in 1991-92, STPI has always maintained a higher than national average growth rate. It recorded more than 100 percent growth rate for eight years, achieved 85 percent growth at Rs. 9.77 billion in 1999-2000, followed by 81 percent in 2000-01, 42 percent in 2001-02 and 26 percent in 2002-03.

Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy has said the government would be more aggressive in giving a thrust to the sector.

In an attempt to re-assure the IT industry, he will be holding a meeting with industry representatives June 15 to find out what support they want from the government.