Hyderabad: The Information Technology (IT) industry in Telangana has been achieving an average growth rate of 15 per cent — much higher than the national average. Apart from the industry contribution, the proactive policies by the State have been credited for this growth with the industry reporting IT exports of Rs 1.28 lakh crore for FY’20. The recent pandemic has shaken the industry and has especially impacted the small and medium enterprises (SMEs) of this sector.
However, the newly-elected Hyderabad Software Enterprises Association (Hysea) president Bharani Kumar Aroll feels that a holistic development of the industry in the State and the proactiveness of the government will push the industry to achieve a growth rate of 10-12 per cent in the upcoming fiscal.
“There will certainly be a slowdown in FY’21 due to the Covid-19, however, we are anticipating that the growth rate will still be at 10-12 per cent as the productivity of most of the employees is at 90 per cent even though they are working from home. We are optimistic that in the next financial year, we will again go back to achieving 15 per cent growth rate as there is a growing interest among industry and government to attract more global development centres and MNCs into the State,” Aroll said.
360 degree approach
As the president of Hysea — a 28-year-old IT body — Aroll is planning to develop the industry in all spheres. This development will include developing the eastern part of the city so as to decongest the cyberabad area, look at the establishing IT companies in tier-2 cities, focus on developing SMEs and look at strengthening the industry-academia relation through job fairs and collaborations with incubators.
“We are looking at developing the eastern corridor as the major concentration of the IT companies has been in the Cyberabad area which is leading to traffic snarls and congestion. We are also focusing on the GRID (Growth in Dispersion) method wherein we will combine the North, South and East part of the city. In addition, we will also be looking at setting up more companies in the tier-2 cities like Warangal, Karimnagar and Nizamabad where already a few companies are operating. The IT park in Karimnagar has been set up at a cost of Rs 100 crore,” the president said.
In order to help SMEs, Aroll said that out of the 300 Hysea members about 80 per cent are SMEs and they will try to focus more on these enterprises so as to provide them with any kind of support from the government. He also mentioned that due to the Covid-19, a large number of layoffs have happened in these enterprises and the State government along with TASK and other private agencies is helping these employees reskill themselves.
Work from home
One of the major changes that happened in the IT industry due to pandemic and eventual lockdown was the shift to work from home for its employees. According to Aroll who is also the CEO of Infopeers Solutions, companies are not in a hurry to call their employees back to offices. Currently in Hyderabad only 10 per cent of the workforce is working from office and this number may go up to an average of 30 per cent by mid-July.
“The new normal that we are observing is that in the long run, companies will still look at having 20-25 per cent of the workforce working from home and they will work in rotation. The industry is also preparing itself for a gig economy going ahead, wherein contract employees and freelancers will become the need of the hour,” he said.
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