The announcement by IT giant Tata Consultancy Services (TCS) to set up a new facility in Visakhapatnam, which will accommodate 10,000 employees, marks a major step in the city’s growth as an emerging IT hub. RL Narayana, Chairman of Investment Committee of IT Association of Andhra Pradesh (ITAAP), spoke with Usha Peri on the far-reaching impact of this development, and addressed concerns related to space, infrastructure, and the potential of Uttarandhra region.
How do you view TCS’ decision to set up a facility in Visakhapatnam?
The announcement by TCS is truly a game changer for us. It will have multiple ripple effects that will benefit not only the industry but also the broader region. The presence of a giant like TCS will encourage other major players in the IT industry to view Visakhapatnam differently. If TCS can establish a facility with a capacity of 10,000, why can’t other companies like Infosys, Wipro or Tech Mahindra? This move will spark interest from IT firms that are and aren’t here yet, making them reconsider their strategies for Visakhapatnam.
Could you give an overview of the current IT ecosystem in Visakhapatnam?
At present, we have around 100 to 150 IT companies operating in Visakhapatnam, with a workforce of approximately 20,000 to 25,000. With TCS entry, we expect a significant growth in this number, both in terms of employment and investment.
What other impacts do you foresee with TCS presence in the city?
There are several. First, many companies that are hesitant now will realise that they might be missing out on something important by not having a presence in Visakhapatnam. Second, local talent that will otherwise migrate to cities like Hyderabad, Chennai or Bengaluru will now have the option to work closer to home. The narrative will shift from ‘Why stay in Visakhapatnam?’ to ‘Why leave Visakhapatnam?’ Third, whenever a large company like TCS sets up in a city, ancillary businesses will follow. This will boost startups and create a thriving ecosystem. Lastly, the professional training sector will also expand, with more companies offering soft skills, technical, and management training, catering to the growing workforce.
There has been some concern regarding the availability of space for IT expansion in the city. What is your response to that?
The idea that Visakhapatnam lacks space to accommodate IT companies is a myth. For instance, Millennium Towers Phase Two has been completed, and together with Phase One, it provides about 1.5 to 2 lakh square feet of space. Additionally, there are several vacant properties in the city’s core and the IT Hills, classified as Grade A and Grade B spaces. These properties just need better marketing and coordination. With the upcoming international airport at Bhogapuram, travel connectivity will improve significantly, making it an attractive location for employees and businesses alike.
What improvements are being made in terms of infrastructure and safety in the IT corridor?
Over the last few months, a lot of attention has been given to security in the IT hills, especially due to its somewhat isolated location. The police presence has been increased, and issues with lighting and road connectivity have been addressed. However, transport remains a concern. The government has assured us that this will be resolved soon. The district collector has committed to improving transportation options. Additionally, extending bus routes from Gajuwaka, Vizianagaram, Pendurthi, and Steel Plant to IT Hills is also available.
Are there any other developments on the horizon?
It is also learnt that a large commercial space is likely to come up on RK Beach Road within the next three years. This will further enhance the city’s appeal as an IT and commercial hub.
