Tamil Nadu reported a 35 per cent increase in IT/ITeS exports to Rs 17,500 crore as of January 2009, compared with Rs 13,000 crore in the same period last year, according to government data. This despite the slowdown in the US economy, which is a major market for IT/ITeS companies in the state.
The growth was led by the service sector, which accounts for 40 per cent of the total IT/ITeS exports from the state. Industry representatives said though the current slowdown did not lead to any cancellation of new business, signing of new business was getting delayed.
National Association of Software and Services Companies (Nasscom) regional director K Purushothaman said among the service sector, healthcare reported a 40 per cent increase while remote infrastructure management services and animation/gaming were up 30 per cent each. The BFSI (banking, financial services and insurance) sector rose 20 per cent largely driven by the insurance business.
Knowledge process outsourcing and legal process outsourcing are catching up by reporting a 30-35 per cent growth in the state.
However, IT companies that are into product development reported a slowdown in the business. Representatives of the top IT companies said existing clients were asking for 30-40 per cent reduction in price. Getting new customers too has dropped 10 per cent, they said.
