The Hindu
Bangalore, Nov 7: The eleventh edition of Bangalore’s annual IT event, named BangaloreIT.biz this year (till last year it was known as Bangalore IT.in) drew less participation owing to the slowdown in the IT industry caused by the global economic turmoil.
The three-day event was inaugurated on Thursday by Karnataka Chief Minister B S Yeddyurappa. Chief Minister of Gujarat Narendra Modi inaugurated the exhibition.
Bangalore IT.biz 2008 is being organised by the Department of IT, BT and Science & Technology, government of Karnataka; Software Technology Parks of India-Bangalore; and MM Activ, a private science communication company. Gujarat is the partner State for the event and Mexico is the official partner country, and is represented by a 50-member team. The Ambassador of Mexico in India, Rogelio Granguillhome, was present at the event.
‘Explore potential’
Modi urged the IT industry to address the domestic market in order to overcome the problems caused by the slowing down of the world economy. “We are at a crossroads now, and it will help if the industry addressed the vast untapped potential in the domestic market,” he said. He added that the average productivity in India was still low because companies were still providing “only low-end support services”. The Indian IT industry, he said, “has been content to stay in the comfort zone of low value-addition. He warned that if the industry did not move up the value chain, it would find it difficult to deal with competition from China, the Philippines and countries in Eastern Europe. “The industry must reinvent itself by investing in research and development, and develop products,” he added.
Yeddyurappa said revenues from Indian software exports were likely to grow by 24 per cent in the current year, compared to 29 per cent in the previous year. Karnataka, he said, was likely to be affected because about 35 per cent of Indian exports originated from the State.
Sudhakar Rao, Chief Secretary, government of Karnataka, said Indian IT companies were facing difficulties because 40 per cent of the companies were cutting IT-related budgets and negotiating lower rates with suppliers. He promised the IT industry that the government would “support it at every level.” The State government’s revision of its IT policy was aimed at giving the industry “a boost,” he added.