IT products and services will be in great demand once the new govt takes shape
Hyderabad :
The information technology industry in the residual Andhra Pradesh, which has been contributing only a fraction of the State’s revenues, can expect a windfall. The creation of a new capital, a variety of government departments and agencies would require a huge IT backbone.
Likely rollout of government-to-citizen and government-to-business services in the next few months too would create a demand for IT products and services. Of the IT revenues of ₹64,354 crore the State recorded in 2012-13, the Seemandhra cities contributed just ₹1,628 crore. While the IT companies in Visakhapatnam generated ₹1,445 crore, Vijayawada followed with ₹115 crore, Kakinada ₹61 crore and Tirupati ₹7 crore.
Promising future
But the industry leaders see a traction and they believe that the formation of a new government would definitely trigger growth in the region. They, however, caution that one cannot expect a Hyderabad-like growth for the industry overnight. “Perhaps, it will take the same time as Hyderabad did. But it definitely will,” BVR Mohan Reddy, Chairman and Managing Director of Infotech Enterprises, toldBusiness Line.
His company has significant operations in Kakinada and Visakhapatnam, both launched a few years ago. “We have just achieved a milestone in Kakinada where the number of employees has crossed the 1,000-mark. In Visakhapatnam too, we see promise in hiring,” he said.
Strong foundations
He, however, said that availability of infrastructure would play a major role in making it an IT hub in the future. “Customers would like to personally come and visit facilities (before placing the orders). You need good infrastructure,” he said.
Ramesh Loganathan, Vice-President of IT industry Association of Andhra Pradesh, said that though the Government’s IT needs would mostly be served by the top league IT firms, there would be trickle down effect. “But primary growth will only come when the industry drives it. Almost all the top notch multi-national companies have presence in all major IT hubs. There’s little scope for their expansion elsewhere. You will see growth only when it is driven by local entrepreneurs,” he felt.
Fresh start
The State Government has readied proposals to get IT Investment Region status to Visakhpatnam and Tirupati. The ITIRs, a Central Government initiative, is aimed at improving IT and physical infrastructure in a limited geography. Hyderabad has become the first City to get such an ITIR, encompassing the old and new IT areas around the city.
“Visakhapatnam ITIR will cover about 11,000 acres (or 45 sq km) and will house IT hardware and services companies. We estimated an investment of ₹25,000 crore to develop infrastructure internal and external infrastructure,” IT and Communication Minister of the undivided State Ponnala Lakshmaiah said.
The 25-year-old project is expected to create 4.28 lakh jobs and generate revenues of ₹37,350 crore when it is fully operational by 2038.
source: http://www.thehindubusinessline.com / Business Line / Home> News> National / by K V Kurmanath / Hyderabad – February 20th, 2014