Chennai and TN IT exports soar to over Rs 20,000 crore

An article in today’s Economic Times informs us that the state’s IT exports zoomed past the Rs 20,000 crore mark according to the Software Technology Parks of India’s Director Ms R Rajalakshmi. Of this Chennai contributed a whopping Rs 19,867.31 crore with the rest coming from other cities such as Coimbatore and Trichy. Of this applications and systems software contributed 68% or Rs 14,077 crore while IT enabled services accounted for 17% at Rs 3,519.28 crore.

Chennai continues to attract investments from all the large IT players and grew at 46.6% in 2006-07, fulfilling the Harvard University Study that forecast that the city would grow faster than Bangalore for a number of years in total IT exports. The state is counting on high growth levels in 2007 as well with companies like TCS, Infosys, Satyam and Wipro all ramping up their Chennai operations with campus style facilities. Infosys, in fact, has set up the world’s largest off shore software development centre at Mahindra City with a capacity of 25,000 developers when fully complete.

IT and IT services exports have the potential to employ thousands of professionals, and also have a multiplier effect of at least ten to one from the allied services that are developed to support the industry such as security, housekeeping, catering, transportation and maintenance services. Chennai and the state continue to offer advantages in terms of low cost office space, land for construction, lower salary costs, a plentiful supply of engineering and other graduates and a population with an aptitude for software development.

The industry has contributed to the enhancement of infrastructure, air traffic in and out of Chennai, the construction industry for both residential apartments and office space and the rising consumer demand for services and consumer goods with an upwardly mobile work force. This indeed augurs well for Chennai and the state, and will contribute to the GDP growth of the state, and the well being of the citizens of TN over time

3 Comments so far

  1. sachin (unregistered) on May 3rd, 2007 @ 1:01 am

    Great news and good for IT and chennai. Is this based on those companies that declare their profits in chennai?

    Your figures reflected my suspicion that ITES hasnt taken off too much in TN. I really wish we had more KPO’s in chennai. there arent many healthcare /finance / SCM or consulting KPO’s in the city. Once they do come in they could really bring in some variety of career options over the traditional domain IT. Im perplexed at their abscence cause allota national level b school grads are from chennai. But i guess the desirability of the KPO also depends on the career path that the KPO’s have on offer.

  2. Yuva (unregistered) on May 7th, 2007 @ 1:40 pm

    to keep the growth in IT sector at good phase.. we(chennai) has to attract workforce. most of chennai workforce is from southern states. somehow we need to be more hindi friendly, solve water issues, avoiding social policing to an extent, et.. to attract more people from northern part of india..

    and infrastructure has to get better.. already, chennai has 1hr traffic jam sometime someplaces. if not enough force given, it will be another bangalore.


  3. tanush6 (unregistered) on May 10th, 2007 @ 8:47 pm

    isn’t this the right time to ask for an IIM – Chennai?

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