Hyderabad zooms its way to top in IT sector

The world’s top five IT majors Google, Microsoft, Amazon, Facebook and Salesforce have chosen Hyderabad to establish their second largest facilities outside their global bases.

Hyderabad: Telangana has created a mark for itself in the information technology space, more so Hyderabad. Realising the potential the sector has, the State government has made conscious efforts to roll out programmes that enable its growth, with the right ecosystem and the investments it requires. All this has made Hyderabad the go-to destination for the IT sector.
The world’s top five IT majors Google, Microsoft, Amazon, Facebook and Salesforce have chosen Hyderabad to establish their second largest facilities outside their global bases. Investor-friendly policies have enabled global companies to choose Hyderabad as their investment destination.

Telangana government, which has formulated a policy for the IT sector in 2016, has taken care that the growth happens across the State with a focus on all-round progress. Measures have been taken to provide employment opportunities for youth in both villages as well as cities.

Doubling of IT exports

Telangana has been able to double its IT exports within a span of six years from the time the State was formed. From achieving exports of Rs 66,276 crore when the State was formed, exports grew to Rs 1,28,807 crore during 2019-20, providing additional employment to 2.1 lakh professionals.

Despite the pandemic impact on the sector in 2020, the State registered a healthy growth rate of 18 per cent year-on-year, while the national average stood merely at 8.09 per cent. The State also registered a growth rate of 7.8 per cent in the IT employment, while the national average stood at 4.59 per cent, 50 per cent higher than the national average.

Hub for global IT majors

Multinational technology majors such as Microsoft, Google, IBM and Oracle have set up their large operations in the State. Not only this, top Indian IT companies such as Infosys, Wipro, TCS and Tech Mahindra have also established their presence. Global tech giant Google has set up its campus in Hyderabad with an investment of Rs 1,000 crore. This is the company’s largest campus outside of the US. Amazon too has set up its campus in Hyderabad.

Similarly, Apple opened its maps development centre in 2016. The company’s CEO Tim Cook and Telangana Chief Minister K Chandrasekhar Rao opened the company’s campus at WaveRock building in Nanakramguda. Map development for key Apple products such as iPhone, iPad and Apple Watches is carried out from this centre. This campus will create employment for 4,000 professionals. Seeing the fruits of its efforts, Telangana government is further strengthening its efforts to attract more global companies and talent to the State.

Making villages digital

The State government has taken measures to take technology and digitisation to the grass-root level. The State has encouraged establishment of software development centres and BPOs in the villages. With the State government’s encouragement, Cyient has developed its software development centre in Warangal. Eclat Health Solutions opened a 100-seater BPO in Karimnagar while RuralShores set up its BPO in Khammam. Several international and national companies have set up their operations in Nizamabad, Khammam and other districts.

Incentives for IT sector

Telangana government has provided incentives for the IT industry to encourage them to set up their operations in the tier-2 and tier-3 cities under its information and communication technology (ICT) policy.

In addition to providing panchayat and municipal tax concessions, the companies are also given refunds for participation in exhibitions, besides reduction of stamp duty, transfer duty and registration fees, and reduction in telephone and internet bills, besides providing subsidy and access to renewable energy.

Digital Telangana

Telangana government rolled out its Digital Telangana initiative to extend digital services to the rural population. With the help of T-SAT network, technology has been used to extend healthcare, education, wellness, jobs and skills to people in the rural areas. Close to 4,500 schools are benefited by the T-SAT’s initiatives.

Creation of T-Hub

With an aim to make Hyderabad a global brand in the IT sector, Telangana created an international incubator in 2015. This is the only government-backed incubator in the country. By 2017, T-Hub incubated 337 startups, which attracted Rs 91.65 crore of funding from investors. The incubator has partnered with 25 corporates. At least 10 startups gained prominence at national and international level.

With the help of T-Bridge programme, more than 100 startups were given access to global markets so that they can scale up their operations.

T-Hub phase II which will accommodate 4,000 technology entrepreneurs is expected to complete by this month, with an investment of Rs 330 crore. Today, Telangana has 4,000 startups, accounting for 15-20 per cent of the startups that operate in the country. The startup ecosystem is further set to grow.

Incubation centres in tier-2 cities

Telangana government has created IT incubation centres in Karimnagar, Khammam and Warangal with an investment of Rs 31 crore. Madikonda of Warangal today hosts an IT Park that houses companies such as Tech Mahindra and Cyient. Quadrant Resources has become the latest entrant into the Park. There are consistent efforts by the government to attract companies and investments in all these potential cities, while Hyderabad leads their growth.

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