Information Technology in Bangalore, Karnataka

Majority of IT activity in Karnataka is concentrated in Bangalore. Bangalore is also referred to as the Silicon Valley of India.

NASDAQ opened its office in Bangalore on Feb 12, 2001. This was seen as a major recognition for Bangalore.

The Software Technology Park plays a big role in encouraging this industry in Karnataka. Other STP centers in Karnataka are,

  • Hubli – their website is not working
  • Mangalore

For the year 2000-2001 software exports figures are as follows (Courtesy: NASSCOM and Karnataka IT Secretariat):

  1. Karnataka – Rs 7,475 crore – Infosys and Wipro account for over Rs 1,000 crore each.
  2. Delhi – Rs 4,350 crore
  3. Tamil Nadu – Rs 2,956 crore
  4. Maharashtra – Rs 2,688 crore
  5. Uttar Pradesh – Rs 1,246 crore
  6. Andhra Pradesh – Rs 1,990 crore
  7. Kolkota – Rs 250 crore
  8. Bhubaneshwar (Orissa) – Rs 200 crore
  9. Mysore – Rs 30 crore (from 22 companies)

Bangalore attracts three foreign equity companies every fortnight. The number of companies registered with STPI are as follows

  1. 2001-02: 110
  2. 2002-03: 116

As far as Bangalore is concerned, 94-96 per cent of exports were routed through the SPTI centre in Bangalore. Karnataka software exports are as follows:

  1. Rs 10,745 crore in 2001-2002: BPO/ITes Rs 264 crore, hardware Rs 838.09 crore
  2. Rs 13,754 crore in 2002-03: BPO/ITes Rs 988 crore, hardware Rs 1,403.85 crore. Mysore had registered exports of Rs 65 crore from 26 companies and Mangalore recorded exports worth Rs 330 crore (TN: 6,315.51 crore, Andhra Pradesh: Rs 3,688 crore)
  3. Rs 18,100 crore in 2003-04 (Bangalore: Rs 17,474 crore, Mangalore: Rs 456 crore, Mysore: Rs 180 crore, TN: Rs 7,621.50 crore, Andhra Pradesh: 5,025 crore). The entire state recorded Rs 19,400 crore (33% of India’s software exports, 58% of South India’s software exports)
  4. Rs 27,600 crore in 2004-05 contributing to 34% of the overall Indian IT exports.
  5. Rs 37,600 crore in 2005-06 contributing to 37.6% of the overall Indian IT exports. Around 125 foreign equity companies pumped in investment of Rs 1882 crore while Indian companies invested Rs 879 crore. About four new companies are coming to Karnataka every week. Some of the companies that are setting up a base in Bangalore include JP Morgan Services, Target, Caterpillar, Apple Computers, ABB, WS Atkins and Bearing Point. Mysore’s exports to increase from Rs 400 crore to Rs 600 crore and Mangalore to grow from Rs 570 crore to Rs 1000 crore by 2007. On the hardware front, Karnataka’s exports grew from Rs 1768 crore last year to Rs 2481 crore.
  6. The software exports from Karnataka has reached the Rs 19,500-crore mark in the first six months of 2007-08 fiscal as against Rs 16,000 crore in the corresponding period last fiscal. Ninety per cent of the exports were from Bangalore.
  7. 2007-08: Exports will reach Rs 70,000 crore ($17.6  bilion). Software exports from the Karnataka, which were growing at a compounded annual growth rate of 38% over the past three years, are expected to grow by 46% in 2007-08. 520,000 employed in IT/ITeS sector. The performance of the tier-II cities namely Mysore, Mangalore and Hubli together was 45 per cent with revenue touching Rs 2,423 crore.
  8. Karnataka exported software worth Rs 54,000 crore in the 12 months to March 2008 and Rs 48,600 crore in the year-ago period, when the growth rate was 36%.
  9. 2008-09: Rs 74,929 crore. 540,000 employed in IT/ITeS sector

The above list clearly shows Karnataka is the leader when it comes to software exports. SEI CMM Level 5 statistics are also very encouraging: World [40 companies], India [29 companies] and Bangalore a whopping 18 companies!

Organizations like TiE are playing an active role in encouraging entrepreneurship.

Every November of every year, STPI holds BangaloreIT.biz in Bangalore.

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