IT majors keen on setting up base in Visakhapatnam

TCS too evinces interest

IT major Accenture is planning to set up shop in Visakhapatnam, while TCS has reportedly expressed its interest in launching a base in the city, said sources.


Minister for IT and Industries Minister Mekapati Goutham Reddy has reportedly held two rounds of discussions with TCS which has exuded confidence that it would set up a facility in the city soon.


Capgemini and Accenture are also making enquiries on infrastructure available in the city, said sources. Uber recently announced that it chose Visakhapatnam as its base for its second Centre of Excellence in the country, with the first one located in Hyderabad.


Sources told The Hindu that TCS is interested in establishing a 1,000-seater facility subject to availability of suitable land. The city at present is home to HSBC, Wipro, Tech Mahindra, Conduent, Concentrix, WNS, Miracle Software, IBM, Patra India and other IT and ITeS units.


Out of an estimated turnover of ₹2,000 crore, 80% is from BPM units. IT Association of AP (ITAAP) projects a bright future for BPM units in the State in general and Visakhapatnam in particular. Uber recently started a CoE with an investment of USD 800,000 and promised to provide employment to 500. This was the first major project set up in the city after the YSRCP government made it mandatory to provide 75% of jobs to locals. Once the proposed executive capital is set up in the city, stakeholders in the industry feel that more companies will invest in the city.


“Though the proposals are at a nascent stage, in response to the encouragement given under India BPO Promotion Scheme (IBPS), many are coming forward to start their operations in the city,” STPI Joint Director M.P. Dubey said when asked about reports of TCS, Capgemini and Accenture evincing interest to launch their facilities here.


‘Prominent hub’

“Visakhapatnam, because of availability of industry-ready graduates from management, engineering and other professional colleges with good English knowledge and communication skills, is emerging as a prominent hub for BPM units,” he said. Under the IBPS, financial incentive of up to 50% of expenditure incurred on BPO/ITES operations towards CAPEX and/or OPEX on admissible items, subject to an upper ceiling of ₹1 lakh for every seat created is given.


The scheme also offers special incentives for employment of women and specially enabled persons. For those who generate jobs exceeding the target, local entrepreneurs and those creating opportunities in remote areas are also given financial support.


SOURCE: Paper.li