Published & Updated as on - 2010-03-12
Blame
it on the regional unrest in Andhra Pradesh or the ambition of the companies to
grow beyond Hyderabad, it's now Hyderabad versus Vizag in developing IT and ITeS
clusters.
According to sources, more than half-a-dozen IT
majors have already started evaluating Vizag as their next destination.
Though the companies were worried about the
growing regional unrest and frequent interruptions in operations due to the
Telangana agitation, the IT honchos argue that the move towards Vizag is only
to tap the potential in tier-II cities and has nothing to do with stir.
“IT industry is being promoted in tier-II cities
including Vizag for the last five years, and it’s been growing slowly,” M
Narsimha Rao, president, IT and ITeS Industry Association of AP, said.
However, industry sources said that the
companies were indeed worried about the future and security of their assets in
case the Telangana agitation intensifies and Hyderabad too becomes a bone of
contention in the statehood issue.
Andhra Pradesh currently has about 1,300 big, medium
and small IT and ITeS companies.
About 2.5 lakh professionals are employed in these
companies with an estimated 10 lakh employed indirectly.
Interestingly, the firms that are reportedly
planning to shift their base to Vizag are not willing to confirm their move at
this point.
“None of us came to Hyderabad because it is
united Andhra or Hyderabad being in Telangana. We had our own reasons including
it being centrally located in the country.
Any destinationin India is about less than two hours
away from Hyderabad. But Vizag plans by many companies are as part of
preparation to face any situation including carving out of the Telangana
state,” a veteran in the state’s IT sector said without willing to be quoted.
For now, not many companies are planning to
shift out of Hyderabad.
They
are planning to develop their development centres as part of the expansion
schemes.
“If something happens contrary to the interests
of the IT sector, Vizag would be ready for us to maintain continuity of service
by then. If nothing happens, we will still have an additional facility to
expand our operations in a new city. This might work as a de-risking strategy,”
a CEO of a mid-sized IT company said.
Meanwhile, the state government is finalising the IT
policy of the state.
According
to IT minister K Venkat Reddy, AP would be one of those few states to include
IT and ITeS under Essential Services and Maintenance Act to insulate the sector
from protests.
The
new policy, according to Reddy, is at a draft stage and would be finalised in
about three months.
Source: DNA 13/3/10 |