Regional divide in software exports

FACTS OFTEN run counter to popular hype. The case of India's exports of computer software and services is a case in point. The popular hyperbole surrounding some States as cyber capitals of the emerging economy, it has become evident, is just that: hyperbole.

Some established perceptions have been reiterated by the official listing of the country's exports of computer software and services, but there are some lesser-known details of the much- talked about Indian IT industry that have been brought to the fore. Surging performances contrast with glaring shortfalls. Regional contributions, State performances, literacy levels, particularly e-literacy, and the implications of wider policies impacting the performance of a State's IT exports are among the factors reflected by official figures released recently.

The popular perception that has been proved correct by official figures for is that the southern region is at the forefront of software exports. The four southern States, Karnataka, Tamil Nadu, Andhra Pradesh and the Union Territory of Pondicherry together account for 43.37 per cent of India's exports of computer software and services and are valued at $1,745.10 million.

But the Northern region is no major laggard. With a regional contribution of $1,438.34, million Delhi, Uttar Pradesh, Haryana, Rajasthan, Punjab and Madhya Pradesh together account for 35.75 per cent. The laggard really in the unfolding software spectacle is the Eastern region with a paltry contribution of $110.90 million, which translates to 2. 75 per cent of the national exports. Also to be reckoned is that barring two States - West Bengal and Orissa - there has been no contribution from the other States in the East, including the North-East.

Official statistics by the Union Ministry of Information Technology which give the State-wise break-up of the country's IT-related exports, point to yet another imminent divide in the Indian IT sector - that of a few States surging ahead in the race for the lucrative software export market.

There is also another divide of sorts to reckon with - that of a pronounced urban skew within States which are performing well. Given the requirements of international connectivity and other inputs necessary for IT exporters, it does not come as a surprise that urban centres, more specifically State capitals, have emerged as the hubs of the new economy.

In respect of the number of units under the Software Technology Parks of India (STPI) schemes, Noida leads with 1,208 units of the national total of 6,328 spread across the 13 STPs. This is followed by Hyderabad (1,175), Bangalore (865), Mumbai (809) and Chennai (643).

While the present spread of the IT software industry is broadly in line with the existing regional disparities, those in the IT industry point out that the spread of the software units is also in line with the existing human resources in different regions. If the Southern region is doing better in terms of software exports, it is because there are many more engineering colleges that provide adequate and continued supply of trained manpower.

Even in the South, which accounts for the largest chunk of software exports, Kerala and Pondicherry, with ranks 11 and 15 respectively, have turned out to be contributing meagrely to the region's total. Though Kerala has taken the initiatives to move more towards e-governance, and despite its highly-laudable performance on the literacy front, the State, software industry sources feel, lacks in the number of qualified software professionals. ``Perhaps the situation would be different if there were more engineering colleges,'' says a software professional, contrasting the situation with Karnataka, which took the lead in privatising engineering college education, even by the mid-Eighties.

A Chennai-based professional in the application software export business says that an inherent advantage of the South in addition to the numbers, is the more favourable quality of the professionals, some of them with multiple qualifications, who can acquit themselves better with the demands from overseas clients.

Policy initiatives, especially the liberal scheme for setting up STPIs have also played a part in the large numbers. Mr. R. Rajagopalan, director (finance) of the Chennai-based Cognizant Technologies Systems, pointed out that it is ``extremely easy'' to set up an STPI unit. Under the STPI's `private bonded warehouse' concept one could set up a software development centre anywhere in a city and it would be considered under the jurisdiction of the STPI zone.

Societal patterns have also had a significant influence. ``Hyderabad has a large number of first-generation graduates and entrepreneurs who have the money to invest in such new business,'' Mr. Rajagopalan said. However, holding out the caution that there could be an exaggeration in the figures, he said that there were instances where the projections made by a promoter in terms of employment openings and revenue projections were not met.

In some cases, the high number of STPI units does get reflected in terms of export performance. Hyderabad is a case in point. The city, which is the capital of Andhra Pradesh and widely perceived as the place to be, ranks second in terms of number of STPI units. But, when it comes to performance of the State in terms of contribution to exports, Andhra Pradesh, despite all the hyperbole and hardsell, ranks sixth.

V. S. Sambandan (in Chennai)

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