Andhra got raw deal in IT

By SNV Sudhir

Visakhapatnam, Sep 15, 2013: With successive governments focusing on Hyderabad and its surroundings for developing IT, the sector suffered serious loss in the rest of Andhra Pradesh, especially tier II cities in Rayalasema and coastal Andhra regions, like Vizag and Vijayawada. Ironically there is not a single IT company that provides reasonable employment to local youth in Rayalaseema.

Now, the thought of parting with Hyderabad, in the event of state bifurcation, seems painful for the representatives of IT and software firms in  Seemandhra.  

“Severe injustice has been done to Seemaandhra region and Vizag, in particular. It was completely neglected and people are all migrating to Hyderabad in search of jobs from all of Andhra. No significant employment or investment has happened in Andhra region. Only Hyderabad has hope and it is now being given to Telangana is most unfair and not acceptable,” said Rushikonda IT Park Association (RITPA), vice president, O Naresh Kumar.  

There are around 100 medium, small and big IT and ITES firms operating in Vizag employing around 17,000. Vizag is considered as second important and big city after Hyderabad in Andhra Pradesh.  Most of the units functioning in Vizag, deal in end-to-end business integration, medical billing, financial information processing, ERP product, content management, networking, business, recruitment process outsourcing, and medical transcription.

While the IT turnover from entire Andhra Pradesh is Rs 64,354 crs with Rs 51,300 crs export and Rs 13,000 cr of domestic business, only Hyderabad’s contribution is 97 percent and the rest of the state is only 3 percent.

Of the total 13lakh employed in IT sector only 23,000 are from rest of Andhra Pradesh. Employment is less than 2percent in rest of Andhra Pradesh when compared to Hyderabad.

While Vizag’s IT sector turnover is Rs 1,445 cr and employs around 17,000, Vijayawada’s turnover is a meager Rs 115 crores employing only 2900.  Kakinada  IT companies does Rs 61 crores and employs 1900.  Tirupati IT sector makes a turnover of Rs 7 cr.  

“This is sorry state of affairs. We urgently need good promotional policies to develop tier II cities irrespective of state bifurcation. Only Hyderabad has grown. Take out Hyderabad and we have only 3percent business. Existing state government IT policy has led to sick SEZs and empty IT buildings in tier II cities and no additional growth,” said RITPA president, P Vishukumar Raju.

He suggested urgent promotional policy for this region and allow ownership in IT SEZs as per new union government SEZ policy which has not been implemented here and allow existing companies to bring another IT company to operate here.