Mysore scripts grand growth in software exports

Mysore, Apr 1: Cashing in on the information technology saturation in neighbouring Bangalore, the heritage city of Mysore, making rapid strides in the sector, is expected to cross the Rs 600 crore mark in software exports during 2006-2007.

IT sources told UNI that the final figures would be known only by the second week of April. In the first half of the fiscal, exports from Mysore had crossed Rs 210 crore as expected. The second quater was also equally good. The leading tier-II city had registered Rs 392 crore worth of exports last year.

The growth was scripted by big IT companies setting shop in the city, which had become the next IT hub of the State after Bangalore.

The city of palaces, housing 48 IT companies including eight new ones opened in the last one year, had steadily moved northwards in the software export graph year after year, the sources said.

Forecasting a bright future for Mysore in the software sector, the State Government had cleared a proposal by Target India, an US-based company, to set up shop in the city and allotted land for the purpose. A Fortune 500 retail giant, the Target Corporation, with an annual turnover of 52 million Dollars, would establish its software development centre here and was expected to commence operations during 2007-2008. This would make a significant difference to the IT industries in Mysore.

The city already housed the facilities of leading software firms such as Infosys and Wipro. India's leading software exporter Tata Consultancy Services was expected to launch operations here soon.

Sources in the Software Technology Park of India said 15 new software companies were expected to start operations in Mysore during the coming years, taking the strength of IT companies here to 63.

According to IT sources here, Bangalore had already become overweight in terms of IT sector and hence companies were looking at Mysore as an ideal destination for investments. Even the Union Government had acknowledged Mysore as numero uno among the 20 tier-II cities in the country for promotion of IT industry. Karnataka Major and Medium Industries Minister Katta Subramanya Naidu, who visited the city recently, said nobody ever doubted the growth potential of Mysore. Taking the present rate into account, there was all possibility of Mysore overtaking its 'big brother' Bangalore in industrial growth.

The Minister, who was part of the State delegation that visited the US recently, said Kannadigas in the US had evinced interest in investing in Mysore rather than Bangalore.

The State Government had directed the Karnataka Industrial Area Development Board (KIADB) to aquire about 3,000 acres of land afresh to meet the growing demand for industrial land.

A Mckinsey-NASSCOM report showed that India would continue to top the global BPO market with 46 per cent share and 65 per cent share in IT offshoring and outsourcing market by year 2010. The combined market was estimated to grow from the current 30 billion Dollars to 300 billion Dollars by 2010. The report also said IT services would require 1.50 lakh employees, while the BPO sector would need 3.5 lakh trained personnel during the next few years.

With several IT companies planning to set up units in Mysore, the authorities were bracing up for the huge influx of software professionals into the city.

Trade and industry circles were almost unanimous about the hot investment climate prevailing in Mysore. The ever-escalating prices of real estate was a pointer. Apart from residential plots, land for setting up industries too have become scarce in and around Mysore.

UNI