Tamil Nadu emerging next software stop

The Economic Times
 
TIMES NEWS NETWORK [ THURSDAY, MAY 02, 2002  4:16:33 AM ]

CHENNAI: Tamil Nadu has crossed a milestone in software exports by achieving $1.1 billion (Rs 5,223 crore) in exports during 2001-02, registering a whopping growth of 67.8 per cent from $677 million (Rs 3,116 crore).

This staggering growth, during the most difficult period in the history of software sector worldwide, is expected to take the state close to Karnataka, the top software exporter in India.

“Last year, Tamil Nadu was ranked third in the country. Now with this growth, it might move up to the second place beating other contenders like Delhi, Maharashtra and Andhra Pradesh,” sources said.

Application software, consulting activity and system software continue to account for the major share, with 89.65-per-cent of total software exports, according to the Software Technology Parks of India, Chennai.

“The contribution from IT-enabled services was 6.5 per cent. The ITES and BPO sectors are expected to grow stronger in the coming years. Others like Web Applications and product development accounted for 3.53 and 0.32 per cent of total exports, respectively,” said R Rajalakshmi, Director, STPI-Chennai.

Notably, export revenue from offshore projects was higher (Rs 3,300 crore) than the income from onsite works (Rs 1,717 crore). Also, hardware exports were at Rs 482 crore.

There are 558 software export companies in the state, apart from six firms in Pondicherry. The STP units alone made exports to the tune of Rs 4,646.62 crore, while firms at the Madras Export Processing Zone (MEPZ) accounted for Rs 206.55 crore.

TCS has become the top exporter from the state, followed by HCL Technologies, Pentasoft, Infosys and Wipro. The other players in the top-10 exporters list include Cognizant, Covansys, SSI, Polaris, Orbitech and Satyam Computer.

While there are 13 companies with exports in the range of Rs 50-1,500 crore, 32 firms are exporting between Rs 10-50 crore, 112 entities are in the Rs 1-10 crore category.

Interestingly, though 75 multinational companies (or their subsidiaries) have presence in Tamil Nadu, their contribution to exports is only Rs 604 crore.

Apart from Chennai, the software prosperity has spread to Coimbatore (Rs 42.55 crore), Tirunelveli (Rs 1.59 crore), Vellore (Rs 0.67 crore), Trichy (Rs 5.24 crore), Thanjavur (Rs 0.65 crore), Madurai (Rs 0.26 crore) and Thiruvallur (Rs 0.02 crore).