IT industry expansion in TS tier-2 cities

Potential for more than 50,000 jobs now

NAVEENA GHANATE
Hyderabad

The Telangana government is focussing on expanding the IT industry to tier-2 cities. With an ambitious target of creating 50,000 jobs in five years, Telangana has already created about 10,000 jobs in two years.

IT towers have been constructed in Karimnagar, Warangal, and Khammam and by March they will be opened in Nizamabad, Mahbubnagar and Siddipet. The government is expanding the IT industry to places like Adilabad, Wanaparthy, Nalgonda, and Ramagundem.

IT Secretary Jayesh Ranjan said, “10,000 jobs have been created in tier-2 cities. Even though we set a target of creating 50,000 jobs we can do much more than that. When we go to a company we don’t tell them about the jobs they need to create, but to just consider the locations.”

Vijay Rangineni, who drives the initiative said, “In Warangal, companies tested the waters and will be starting operations soon. There is no shortage of talent when it comes to Warangal. Genpact will be starting operations this month as the lease has been signed and the towers are getting occupied.”

The government’s idea is to look beyond IT towers. “The Warangal IT tower is small but business is being driven by Tech M, Cyient, and Softpath among others. Nearly 2,500 IT jobs have been created in Warangal. In Karimnagar, there are already 15 companies providing 550 jobs. In Khammam 19 companies have provided 450 jobs,” Vijay said.

Businesspersons are evincing interest in tier-2 cities. Vijay said, “In Khammam, Techwave wanted 500 seats. They applied for space in tower 2. Besides, in Nalgonda there is demand for 1,800 seats while in Adilabad it is 750 seats. In both of these places we had more demand than we had expected. Some NRIs wanted us to provide space in their hometowns like Suryapet and they have assured to create jobs. So we are optimistic that we’ll be able to reach the target of 50,000 jobs as it is normally a geometric progression.”

Apart from the IT jobs target, there has been a multiplier effect in the form of indirect jobs.

“When I met the local community in Khammam to understand the multiplier impact, people said that software guys are eating out more. They enjoy weekends, visit resorts, buy apartments, and automobiles, and pump money into the local economy,” Vijay said.

These are largely IT and ITES companies providing software services, IT-enabled services and product development. The government is providing subsidies for every 500 jobs created.

“For every tower, we spent about Rs 20 to 30 crore. During the Covid-19 pandemic, we gave the first year free and continued that for two more years. Now, we are asking for the actual cost of operations and facilities,” Jayesh said.