Software exports from Andhra Pradesh have declined by a sharp 40 per cent in 2009-10, a claim which was disputed by the industry.

Software exports from Andhra Pradesh stood at Rs 22,000 crore in 2009-10 against Rs 32,509 crore in 2008-09, as per the figures presented to the state legislative assembly in the just-concluded Budget session.

On other hand, a whopping 25,000 new jobs were created in the IT sector in 2009-10 compared to 12,786 last year.

Sataym scam and the turmoil in the state over the Telengana issue seem to have hit the exports from Andhra Pradesh, once a preferred destination for IT companies to set up shops.

"Exports seemed to have tumbled because of various factors like the Satyam fiasco, global economic recession and, of course, the political turmoil in the state in the last few months. The impact of Satyam saga on the IT sector in Andhra Pradesh could not be undermined," a top official of the state information and communications technology department said.

A senior official of the Information Technology and Services Industry Association of AP (formerly Hyderabad Software Exporters? Association), however, said software exports were expected to be "flat" in 2009-10.

"The software export revenues were expected to remain flat because of the economic slowdown but we do not expect them to fall so drastically," the industry official said.

Buoyed by Rs 12,000 crore exports at the end of the second quarter of the fiscal, the industry body had initially projected a growth of 10 to 12 per cent for the whole fiscal.

The state's software growth had been remarkable story.

From Rs 284 crore in 1997-98, software exports touched Rs 32,509 crore in 2008-09,

The IT sector in the state have grown exponentially over the years. The industry employed 2,51,786 people in 2008-09, far greater than 8,700 employees in 1997-98.

Andhra Pradesh also has the highest number (57) of IT Special Economic Zones approved in the country, of which 43 have already been notified.

"By February, 2010, 15 notified SEZs have become operational creating employment for 24,030 IT professionals.

With the IT sector expanding to tier-II cities like Visakhapatnam and Vijayawada, we expect software exports to pick up once again in 2010-11," the ICT official said.