Telangana’s IT sector surges beyond Hyderabad

Telangana is perhaps the only State in the country that has set up eight IT Towers in tier I and II cities and towns as part of its plans to expand the IT sector beyond Hyderabad

Hyderabad: Telangana is perhaps the only State in the country that has set up eight IT Towers in tier I and II cities and towns as part of its plans to expand the IT sector beyond Hyderabad and these initiatives are already paying rich dividends.

More so, motivated by the State government’s vision, a few companies have also established their units outside the IT tower campuses.

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As a result, there is lot of IT buzz at Warangal, Khammam, Karimnagar, Mahabubnagar, Siddipet and Nizamabad. Two new towers at Nalgonda and Suryapet were inaugurated by IT Minister KT Rama Rao on Monday.

The Telangana government’s vision to expand the IT sector beyond Hyderabad and into tier I and II cities was working positively. In fact, it was happening much faster than expected, said Vijay Rangineni, CEO – IT Investments, Telangana.

Already, 75 companies were conducting their operations at these towers and this aided in generating employment to about 12,500 youth. About 30 companies have evinced interest in setting up their units at the newly inaugurated Nalgonda and Suryapet towers.

This was mainly after the IT Minister interacted with NRI CEOs in Washington DC and other places, during his recent trips into United States and other countries. He had briefed them about the growth of IT sector in tier-II cities and the ecosystem created by the State government.

The IT tower at Warangal was already housing prominent companies like Tech Mahindra, Cyient and Genpact among others. This apart, LTI Mindtree, Genpact, HRH Next, and Hexad Solutions Private Limited have established their units at different towers.

All the units in tier II cities are conventional companies involved in IT and ITES services. Most of these companies are into accounts, insurance, finance, product design, IT consultancy, strategic consultancy and IT recruitment operations.

The State government’s move to expand IT sector beyond Hyderabad has motivated a few companies to set up their units individually in different districts. For instance, Sanatana Analytics is successfully operating its unit at Bellampally and there are a couple of companies, which have opened their units at Kodad and Parakala.

The State government has created conducive atmosphere for the companies, besides training youth in skill development as per the managements’ requirements. Besides facilitating in availability of talented workforce, this initiative was helping the managements to cut down their operations cost as rents are cheaper compared to Metro cities.

Another advantage of expanding the IT sector to tier II cities was the spin of economy. After many youngsters, especially locals, getting employed in different companies, they were investing heavily in owning plots or buying automobiles.

Next in the pipeline

After the IT Tower at Malakpet, the next one is coming up at Adilabad. The State Government under its ICT policy and Rural Technology Policy is developing IT Tower at Battisavargaon village, Manalapan mandal in Adilabad. To this effect, the district administration has identified three acres in survey no 72 of Battisavargaon village.

The State Government has accorded administrative sanction of Rs 40 crore for construction of the IT tower with a built space of 48,000 square feet. Already, NTT Data Solutions and BDNT Labs are operating from Adilabad.