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Already well known the world over for its achievements in the information technology (IT) industry, India has now made considerable progress in this sector in spite of the current economic downturn. NASSCOM (National Association of Software Services Companies), the country's premier trade body and the chamber of commerce of the IT-BPO (Business Processing Outsourcing) industries, recently released its annual survey on the performance of the Indian IT-BPO services sector for FY08-09 and outlook for FY09-10. The highlights of the survey reiterate the importance of the IT sector.
Present below are the findings of this survey:
Financial year 2008-2009 highlights:
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FY 08-09 export revenues aggregate USD 46.3 billion recording a growth of 16.3%
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Domestic IT-BPO market clocks INR 570 billion; exhibits 21% growth
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Offshore component to increase.
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Growth in emerging geographies, Asia Pacific, RoW 3X of US & UK.
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Domestic market drives growth - Large transformation deals in telecom, e-governance.
Financial year 2009-2010 trends / estimates:
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FY09-10 Export revenue projected to grow at approximately 4-7% to reach approximately USD 48-50 billion.
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Domestic IT-BPO market to reach approximately INR 650-670 billion growing at approximately 15 - 18 %.
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Core markets, North America and BFSI started to stabilize.
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Decision making starting to happen - but buyers remain cautious; large deals missing.
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Analysts continue to downgrade worldwide IT spending for 2009.
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Q1 results of FY 09-10 demonstrate sustained focus with growth in operating margins and high utilization.
From the above findings we see that the information technology sector has grown during the last financial year and the estimates for the current financial year indicates that the sector has potential to grow further.
Karnataka is one of the states that been in the forefront of the information technology sector. As part of its efforts to rope in investments in the state, the Karnataka Electronics Corporation (KEONICS) has proposed to set up Information Technology Investment Regions (ITIRs) in five corridors in the state.
These five corridors are:
1) Hubli-Dharwad-Belgaum,
2) Bangalore-BIAL (Bangalore International Airport Limited Area)-Devanahalli,
3) Mangalore-Surathkal-Udupi,
4) Shimoga-Bhadravathi,
5) Bangalore-Tumkur.
The ITIR policy is aimed at promoting investment in the IT, ITES, and electronic hardware manufacturing (EHM) sectors. Each ITIR is expected to be in a 40 sq km area covering 10,000 acres in each region. The ITIRs would boast of excellent infrastructure so that prospective investors can reap the benefits of networking and greater efficiency through common infrastructure and support services. Such a complex would also help boost exports and generate employment. The ITIRs would also host processing facilities where IT, ITeS and EHMs would be located and non-processing areas will include residential, commercial and other social and institutional infrastructure. The ITIRs may include SEZs, industrial parks, free trade and warehousing zones and export-oriented units.
PriceWaterhouse Coopers Pvt Ltd and Mott MacDonald have been chosen to prepare the techno-economic pre feasibility report (TFR) for the Hubli-Dharwad-Belgaum ITIR. The government is keen to simultaneously develop the ITIR in the Bangalore-BIAL-Devanahalli region
Information Technology Investment Regions in Karnataka. It has invited Expression of Interest from consultants for the TFR.
The setting up of the ITIRs would significantly impact Real Estate. With the recent growth seen in the IT sector, confidence level of companies to invest in Information Technology sector will increase. Such ITIRs will attract additional infrastructural investments in these areas and they will see a repercussion of other developments taking place.
Devanahalli and Mahika in (Hiriyur)
It must be brought to mind that the recently announced Cuddalore-Chennai-Bangalore-Mumbai (CCBM) industrial corridor will transform cities that fall in this corridor as 'major corridors' in themselves. Tumkur falls in CCBM industrial corridor and drawing a correlation between this corridor and the ITIR corridor, it is interesting to note that the Bangalore-Tumkur corridor stands to gain tremendously.
The National Highway 4 that runs through Hiriyur and Tumkur helps in connectivity and the ITIR to be set between Bangalore to Tumkur will have a positive impact on Hiriyur as well. Foreseeing investments to be attracted to the Bangalore-Tumkur area, infrastructural developments will take place in the surrounding areas such as Hiriyur. This will eventually bring in appreciation to Mahika - the Non Agricultural plot project in Kyathanamale village in the Challakere Taluka and bordering Hiriyur Taluka.
On the other hand the Bangalore-BIAL (Bangalore International Airport Limited Area)-Devanahalli ITIR corridor would also attract IT companies and resulting infrastructure. Coupled with the Bengaluru International airport, the ITIR of Bangalore-BIAL-Devanahalli will boost the value of the region since it will attract additional infrastructure. More industries will emerge in this region due to the ITIR and the presence of the new Bengaluru airport. This would lead to supporting infrastructure being developed and will eventually help to bring in appreciation to Expat property at Devanahalli.
The Devanahalli property is located 9 kms from the new international airport.
The ITIRs are bound to bring in good return on investment to these two properties.
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