IT exports from kerala grow beyond expectations

The IT industry and export from kerala has got a phenomenal boost even in this tough economical conditions. the IT exports from kerala went beyond even the national average  though the state’s contribution is minimal compared to many other states such as Karnataka.

According to tentative figures on the basis of statistics provided by majority of companies, exports from the state have registered a growth of around 45 percent compared to the national average of 16 percent during the period 2008-2009.the growth rate has come down this time compared to the previous year which witnessed an unprecedented growth rate of over 60 percent, registering around Rs 1,500 crore worth exports.The exports in 2008-09 is expected to cross the Rs 2,100-crore mark once all the companies provide data regarding the turnover. They have time till May 15 to submit the details.

IT-BPO exports, including hardware exports, from the country reached $ 47.3 billion as against $ 40.9 billion in the previous year. While exports contributed 66 per cent to the overall IT revenue at the national level, over 95 percent of the total turnover from the state amounts to exports.According to NASSCOM analysis, the global technology
related to spending is expected to come down for the first 2-3 quarters this year on account of the downturn, but is expected to pick up in 2010. Greater focus on cost and operational efficiencies in the recessionary environment is expected to enhance global sourcing.

There would also be pricing pressures coupled with contract renegotiations owing to the economic uncertainty, NASSCOM notes. But insufficient working age population in the developed economies and a significant long-term cost arbitrage indicate the sustained cost competitiveness of the domestic market. Service providers are expected to focus on the domestic market to de-risk business and tap the local growth opportunities.

To minimise the impact of economic crisis on the existing firms, the State Government had offered to defer 50 percent of the rent of firms operating in IT parks to next year. According to sources, there has been no notable change in employment profile which stands at nearly 45,000 in Technopark, Infopark and other smaller institutions directly and another 2,10,000 indirectly.