TN records 40% growth in SW exports

CHENNAI: Despite being a preferred destination for the IT and ITES companies, Tamil Nadu has recorded only 40.5 per cent growth compared to the neighboring states of Karnataka and Andhra Pradesh, which recorded 70 and 64.5 per cent growth, respectively.

According to the Software Technology Parks, Chennai, software exports from Tamil Nadu had grown to Rs 10,703.10 crore for the 2004-05 from Rs 7,621.50 crore, the previous year. "In the total exports for 2004-05, top ten companies have contributed Rs 7000 crore and the offshore projects accounted for 68 per cent of the total exports. Last year, offshore projects accounted for 70 per cent," the STPI statement noted.

"The ramp up of operations (in Chennai) by most of the software companies is the reason for the almost 100 percent leap in the growth rate during the last year", said R Rajalakshmi, Director,STPI-Chennai.

The top 10 players such as TCS, Cognizant, Infosys, Wipro, HCL, Satyam Computer, EDS and Scope have driven the substantial jump in the growth rate, by contributing over 50 percent of the total software exports. Though a late bloomer in the IT revolution, the state has accelerated exports from a mere Rs.2 crore in 1993-94 with 10 companies, the STPI statement said.

Of the total growth, the tier -II cities such as Coimbatore had contributed to about Rs 49 crore, and the application software and system software accounted to about 73 per cent, amounting to Rs 7821 crore, compared to the previous years 60 per cent and has become the second preferred destination for IT/ITeS in the state.

However, the results shows that Chennai continued to be the preferred destination for application software and systems software, which had accounted for 73 per cent or Rs 7821 crore of the total software exports. The ITeS exports were in the range of 13-15 percent; web application has grown from 0.5 per cent to nine per cent; and products/packages have grown from less than one per cent to three per cent, STPI sources said.

The total electronic hardware exports from Tamil Nadu stood at Rs.358 crore and the total number of new companies approved under STPI-Chennai is 103, which takes the total number of companies to 1095 in the state, of which 750 are already operating.

The Union Territory of Pondicherry, which is also under STPI-Chennai, has registered a growth of 26 per cent taking the total exports to the tune of Rs.27.20 crore against Rs.21.10 crore recorded in 2003-04.

It is to be noted that Karnataka, the leader in software exports, has recorded a 52 per cent growth in software exports for 2004-05. It's total software exports has zoomed to Rs 27,600 crore for 2004-05 from Rs 18,100 in 2003-04.