Foreign cos to invest Rs 670 cr in Bangalore
July 06, 2004 16:10 IST
Thirty foreign information technology and business process outsourcing firms have committed an investment of Rs 670 crore (Rs 6,700 million) in Bangalore during the first quarter of the current financial year.
Software Technology Parks of India director B V Naidu told reporters in Bangalore that the foreign investment was Rs 670 crore, and an additional Rs 200 crore (Rs 2,000 million) might be invested by Indian firms in setting up base here during the first three months.
He said of the 30 foreign firms, 12 were technology-focussed companies and 11 BPO companies, aiming to leverage the cost-advantage Bangalore offers with its skilled labour.
Naidu said the trend in new firms setting shop here was driven by the United States-based VC firms insisting on having an offshore base in India for funding new technology startups in America, besides the English-speaking talent available here for BPO firms.
The government-owned STPI witnessed setting up of 168 units in Karnataka last fiscal with a total investment of Rs 1,970 crore (Rs 19.70 billion), taking the total number of software and BPO companies to 1,322 in the state.
Karnataka's software exports grew by 46 per cent last fiscal at Rs 18,100 crore [Rs 181 billion ($4 billion)] including a 135 per cent jump in BPO exports at Rs 2,237 crore (Rs 22.37 billion).