IT’s happening in Amaravati
The information technology sector has discovered Amaravati, the work-in-progress capital city of Andhra Pradesh. Several IT companies have already set up their operations in the Amaravati region, and more are clearly on the way, going by government proclamations.
The big daddy of the first round of IT sector investment in Amaravati could be HCL Technologies, the Shiv Nadar-owned information technology major, which has reportedly decided to invest Rs. 1,000 crores to set up software development centres in the Amaravati region. HCL is close to signing an agreement with the Mr. N. Chandrababu Naidu government to set up the development centres, according to media reports.
“This (the HCL investment) will be the first large investment by an IT giant to help Chandrababu Naidu’s dream to recreate Cyberabad in residual Andhra Pradesh,” a senior Andhra Pradesh government official was quoted as saying in media reports.
“The proposed development centre, one of the largest facilities of HCL Technologies globally, will come up on over 30 acres of land near
Amaravati in two phases, where the first phase will take off in a year or so, “the unidentified official was quoted as saying.
HCL Technologies, India’s fourth largest software and solutions company, is among companies that has focused its energies in expanding its operations to so-called “Tier II” cities. Its first such foray was in Lucknow, Uttar Pradesh, where it set up a development centre last year. Lucknow was followed by Madurai, Tamil Nadu, where HCL’s facility trains and employs local engineers.
While HCL Technologies’ will be the first big-ticket investment in Amaravati, it is the smaller companies that appear to be first off the block in identifying Andhra Pradesh’s upcoming capital as a potential investment destination.
Eight IT companies have set up operations in Vijayawada, which is close to Amaravati, and have reportedly hired about 500 people. Apart from this, at least 15 IT training institutes have also opened shop in Vijayawada to make locals ready to take up jobs in the IT sector in the region.
“This is a big boost for Amaravati. We are creating a total IT ecosystem so that engineering and tech graduates in the region get placements in some of the top IT companies here,” AP Non-Resident Telugu Society Chief Executive Officer Ravi Kumar Vemuru was quoted as saying. About 3000 engineering students in the capital region would undergo specialized training before being placed in the IT companies, he said.
The companies which have begun operations in Vijayawada include Accel IT, Horizon IT, AdvanSoft (Chicago), MSR Cosmos, Adept Solutions, Intellisoft and TimesquareIT.
“Initially, these companies will hire about 500-600 persons before scaling up,” said Mr. Vemuru.
Demonstrating the rising importance of Vijayawada as an IT destination, the moribund IT tower near Gannavaram airport, the Medha IT Towers, has found an unlikely, but welcome, savior: Grupo Antolin. The Spanish IT is reportedly planning to start its operations from Medha IT Towers, to design and develop automotive and interior design software.
Mr. N. Chandrababu Naidu is rightfully credited with turning a sleepy and laidback Hyderabad, the capital city of the united Andhra Pradesh, into a vibrant IT hub, with some of the biggest software companies in the world setting up their Indian operations in the city of the nabobs. It appears that Mr. Naidu has been given a chance to replicate his success in Hyderabad in Amaravati/Vijayawada. Going by the announcements, it appears that a good beginning has been made. We wish Mr. Naidu and his government all success in this endeavour.