Andhra Pradesh is unlikely to face the competition unless the government creates a new and innovative model of development plan for Information and Technology (IT) industry in the State. Mere announcement of incentives and IT policy would not suffice and the State has to create a ‘critical mass’ to stand out and compete with Hyderabad, which is portrayed as success story of Chief Minister N. Chandrababu Naidu, feel industry captains.
They point out presence of many lacunae and stumbling blocks in Andhra Pradesh compared to Telangana. Office space is available at Rs. 20 to Rs. 40 per sft in Hyderabad which is not the case in Vijayawada or Visakhapatnam. When Hyderabad was showcased a decade and half ago, the slogan was “Save 30 per cent on operating costs.”
The recruitment too was on the higher side owing to high demand then. The situation is not the same at present and there is a dearth of low end jobs. The IT industry has switched over to digitalisation of services. Most companies are depending on tools to increase their productivity. Unless the manpower is highly qualified and skilled, it is very difficult to sustain in the industry.
“Why will companies move to Vijayawada or Visakhapatnam if rentals are high and there are questions raised about the quality of manpower?” a senior industry representative asked.
Hyderabad city has geared up to meet these changing dynamics. Quality manpower is available there with presence of many prestigious and established institutions such as IIIT and CBIT.
IT expert and entrepreneur J.A. Chowdary, who was instrumental in developing IT industry in combined Andhra Pradesh in his capacity as STPI director, feels the Hyderabad model will not work now as that kind of environment is not there. The situation and battle field have changed. As the companies are changing their business models, the government should change its approach and evolve measures to attract investments, he says.
The government needs to lay emphasis on SMEs, start up companies and invite NRIs to focus on high end niche services besides offering loans. It will help in creating critical mass in next two to three years. “Unless the government creates confidence among companies that Andhra Pradesh has skilled manpower than rest of India, it will not cut the ice,” he says.
Mere announcement of incentives and IT policy will not be enough to compete with Hyderabad
