The Software Technology Parks of India (STPI), a government organisation which facilitates software exports, said the growth was driven by an increase in the number of business outsourcing firms.

"From a technology cluster Bangalore is repositioning itself as the back office of the world," said B.V. Naidu, STPI director. Bangalore, India's technology hub, is the capital of Karnataka.

"Business process outsourcing is fast growing with 41 new companies being approved and exports from the sector growing 275 percent to 9.8 billion rupees and contributing eight percent to the overall exports," Naidu said.

"In the present dynamics of the global economy many corporations worldwide are looking at outsourcing in India as a part of their strategy to maintain their competitive position and increase profits," Naidu said.

About 70 percent of the exports were to North American markets while European markets accounted for 21 percent.

In the last financial year, business process outsourcing firms in sectors such as call centres, pay roll accounting and insurance claim processing, invested 5.1 billion rupees (106 million dollars) in the state, an increase of 23 percent.

"Bangalore attracted three foreign companies every fortnight during the last year," Naidu said.

Investments by these foreign firms rose to 10.2 billion rupees from 8.9 billion rupees, he said.

STPI said technology hardware exports from the state increased 15 percent to 14 billion rupees.

SPACE.WIRE