Published & Updated as on - 2010-04-24
Much to the relief of the IT and ITeS industry in the state, more
specifically in Hyderabad, the Government of Andhra Pradesh issued a Government
Order (GO) on Tuesday declaring IT software industry, including IT Software, IT
Services and IT Enabled Services in the Information & Communication
Technology sector as Essential Service under the Andhra Pradesh Essential
Services Maintenance Act, 1971 (Act no.20 of 1971).Earlier, the industry was
covered under the Shops and Establishments Act.
This comes
as a response to the representation made by the National Association of
Software & Service Companies (Nasscom), the industry’s representative body,
on February 15 this year in the wake of the agitations for a separate Telangana
state which started in December 2009 that crippled business and threatened the
image of Brand Hyderabad.
To recall, some offices of IT
companies were attacked in Hyderabad, and during the frequent bandhs, attendance
in IT offices was affected impacting productivity and customer confidence. The
HSBC office in Visakhapatnam was attacked when it was found open during a bandh
call given by supporters of united Andhra.
It was much needed since we do a lot of mission
critical work here in Hyderabad and much of it is done 24X7 catering to global
customers. We are happy that the government has responded favourably. While the
issue is in process, we didn’t expect the order to come so fast, said Som
Mittal, president, Nasscom.
Narasimha Rao, president IT’s AP, the body representing the industry in
the state, said that this order by the government will ensure that the industry
gets uninterrupted services as the ecosystem in the city is a big enabler. It
is reassuring for the stakeholders and our customers that the government is
behind us, which is very important for Brand Hyderabad as well, he added. On
the other hand, what this means for employees is that they cannot resort to
strikes. Also, they cannot cite bandhs or a curfew as an excuse not to report
to work.
Moreover, companies which depend heavily on
outside transport providers had to bear the brunt as the transport services
were hit during a bandh or a curfew. With the industry being declared an
Essential Service, all this will pass, he said.
In case of a curfew, passes will be issued to
employees and service providers to discharge their duties, Mittal said. Also, the
industry will have to be exempted during bandhs. The IT and ITeS industry in
the state contributed Rs 32,000 in exports last year. It also employs about 2.5
lakh people directly and another eight lakh depend on this business in three
months.
Source:
TOI 21/4/10
Hyderabad News. IT Companies Bullish on
Hyderabad. To Create Three Lakh Jobs.
Andhra Pradesh has staged a comeback of sorts by
emerging as the most favoured state for information technology (IT) giants.
Notwithstanding T-agitations, IT majors have
announced huge expansion plans that will create three lakh new jobs for
the youth of the state. For the first time since the separatist movement
started, two major multinationals have shown interest about opening their India
operations centres in Hyderabad. JP Morgan and the United Health Group will
set up their units at Raheja’s SEZ at Madhapur.
Existing companies like Tata Consultancy,
Wipro, Accenture, Infosys, Virtusa and Honeywell too have informed the
government that they are going ahead with their expansion plans in spite
of disturbances. “Mindspace’s first phase is full with units and they are going
ahead with their second SEZ in Mamidipalli. TCS has also started
construction for the Gachibowli centre expansion,” said Mr K. Venkata
Reddy, the IT and sports minister.
Infosys, Wipro and Accenture have received permission from the government
for their expansion projects with the first two presenting plans to recruit
3,700 people this season.
TCS has promised the government that it will recruit 7,000 people
during its expansion. This is in addition to the recruitment proposed for the
Tishman Speyer International Development Centre. The company will employ 2,500
people for this centre. New facilities of Virtusa are under various stages
of completion and are expected to start operations in two months.
“The recession has had no impact on the creation
and filling up of office space by the infrastructure developers. In fact, in the
recent past, developers like Raheja and Divyasree have made deals of more
than 32 lakh square feet of office space with renowned IT companies,” said
Ms Ratnaprabha, the principal secretary, information and technology department.
Source:
DC 23/4/10
|