Bangalore: Bavaria, with its world-renowned IT hub, Munich, is slowly becoming a focus of Indian IT industry in terms of overseas expansion, a top official of the Bavarian delegation said.

"We are here to shortlist five to six Indian companies for BPO (business process outsourcing) operations in Bavaria," Peter Englert, head of International Operations at GotoBavaria, the state-funded inward investment agency for media and IT businesses, told reporters today (October 30).

GotoBavaria has already assisted 15 Indian IT companies to gain a foothold in Bavaria, he said.

There is vast potential for Indian companies to explore opportunities in BPO and healthcare sectors in Bavaria, he said.

Healthcare accounts for almost 12 per cent of Germany's GDP (gross domestic product) with an annual spending of 250 billion Euros in the sector, Englert said.

However, Indian companies will have to address the market needs of Bavaria differently. "A much closer understanding of clients needs and requirements is essential. It will override the cost factor also," he said.

Munich being a major media and film technology location, Indian companies can explore business possibilities in these spheres also, Dr Reinhard Wieczorek, Deputy Lord Mayor and head of Economic Department of Munich, said.

There are nearly 8,000 IT companies in Munich employing over 150,000 people. The annual income generated by the IT sector is 120 billion Euros, he said.

Munich's second airport terminal has been recently developed along with Lufthansa. "It will be able to accommodate 25 million passenger traffic by 2004 and 50 million in another 10 years," Wieczorek said. "We are also working on a direct flight from Bangalore to Munich and have already submitted a proposal to the Indian Government on it," he said.

PTI