Hyderabad: While Hyderabad remains the IT sector's thriving hub with a mature tech ecosystem, Tier-II cities are quickly emerging as the major growth drivers as a result of state government initiatives such as the construction of IT towers in Warangal, Karimnagar and Khammam, as well as conducive factors such as quality infrastructure and skilled labour for infotech firms to launch operations.
The government now intends to inaugurate five IT towers in other Tier-II cities, with the construction of them in Mahbubnagar and Nizamabad nearing completion and scheduled for inauguration in January. The Nizamabad IT Tower offers 50,000 square feet and the one at Mahbubnagar 60,000 square feet.
The Siddipet IT tower, where work is nearing completion, would have 1,21,600 sq ft for tech firms. IT Towers at Nalgonda, and Adilabad are also nearing completion and likely to be inaugurated in June.
Analysts in the IT sector attributed the rapid changes in Tier-II cities to IT minister K.T. Rama Rao's vision of attracting tech firms and providing a conducive ecosystem by focusing on expanding the sector beyond Hyderabad and creation of jobs in rural areas by constructing IT Towers and entering into MoUs with tech firms.
According to official sources, Rama Rao's "3-D mantra" (Digitise, Decarbonise, and Decentralise) to extend the IT sector beyond Hyderabad to Tier-II cities has begun to reap rich dividends. The IT Towers in Warangal, Karimnagar, and Khammam now employ almost 20,000 people directly and indirectly, while the five new IT Towers slated to open in 2023 are expected to employ more than 50,000 people.
"In Undivided AP, the IT sector and jobs were confined only to Hyderabad. But after the formation of Telangana state and KTR took over as IT minister in 2014, IT sector and jobs have spread to Tier-II cities giving employment opportunities for locals in their home districts. Nearly 20,000 employees are already working in these IT Towers in Warangal, Khammam and Karimnagar and set to touch 50,000 within a year," sources added.
Analysts believe that Rama Rao is not only instrumental in the construction of the IT Towers, but also helping the IT behemoths in establishing operations in Tier II cities. Tech giants such as Tech Mahindra, Mindtree, and Cyient have already launched operations in Warangal with the unflinching support of the IT minister, while Softpath and Quadrant began operations in Warangal IT Tower last year.
On the other hand, US-based Genpact has decided to set up a facility in Warangal IT Towers with a built-up size of 4,825 square feet at a cost of Rs 15 crore while providing employment to 339 people.
