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Bangalore's rising foreign investment

BANGALORE- Thirty foreign information technology (IT) and business processing outsourcing (BPO) firms committed an investment of Rs 6.7 billion (US$145.6 million) in Bangalore during the first quarter of the current financial year.

Software Technology Parks of India (STPI) director B V Naidu said the foreign investment was Rs 6.7 billion, and an additional Rs 2 billion 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 labor.

Naidu said the trend in new firms setting up shop here was driven by US-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 the setting up of 168 units in Karnataka last fiscal with a total investment of Rs 19.7 billion, taking the total number of software and BPO companies to 1,322 in the state.

Karnataka's software exports grew by 46% last fiscal at Rs 181 billion (US$ 4 billion) including a 135% jump in BPO exports at Rs 22.37 billion.

(Asia Pulse/PTI)

Jul 8, 2004

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