Bangalore software exports down by 50 percent?
By Pulkit Sharma
NASSCOM reported in Aug, 2009, that despite the global recession, the Indian IT-BPO sector reached USD 58.8 billion in FY08-09 up from USD 52 billion in FY07-08. Export revenues for the IT-BPO industry recorded growth of 16.3 % and clocked revenues of USD 46.3 billion in FY08-09 up from USD 40.4 billion in FY07-08.
The domestic segment grew by 21% to register revenues of INR 570 billion in FY08-09 from INR 470 billion in FY07-08.
The Indian tech sector was holding its ground well while America and Europe got the economic shakes. NASSCOM was optimistic about the future and predicted that export revenues for FY 09-10 would grow to USD 48-50 Billion.
NASSCOM said that in 2008-2009, IT services export segment had grown by 14.7% to clock revenues of USD 26.5 billion; BPO exports were up by 16.5% registering revenues of USD 12.7 billion. Engineering services and product exports clocked revenues of USD 7.1 billion, growing at 11% in FY 08 -09.
But the Government in Bangalore is claiming the exact opposite. It told DNA that IT growth is down by 50% this year in Karnataka
Global recession has strongly affected the state’s performance in the information technology sector. Software exports for 2009-10, till the end of November 2009, was worth Rs29,389 crore, down by 50% compared to the exports in the corresponding period of the previous year, when they had touched Rs70,375 crore.
Exports from Business Process Outsourcing (BPO) units in the first eight months of the financial year stood at Rs6,001 crore, compared to Rs15,014 crore in 2008-09.
While Bangalore is not the only tech hub in India, it is clearly the most important. How can it show such a massive drop in exports even as NASSCOM is claiming the exact opposite? In this case, NASSCOM predications seem to be right.
It is highly unlikely that there would a real drop in exports of 50 percent in 2009-2010. Or have the IT companies in Bangalore changed their accounting methodology for tax purposes?