Logo Logo
Home > Information Kiosk > DEVELOPMENT OF I.T. SECTOR - New File



Andhra Pradesh has been at the forefront in exploiting the opportunities available in the explosion of Information Technology – outsourcing in the country.

The  real turn around in the  IT sector  came in Andhra Pradesh only in the Congress regime  due to its  forthright and  determined  initiatives to fully tap the  advantage for the benefit of the skilled manpower  abundantly available in the State.

“My government is committed to improve the quality of life of the common man, by leveraging the IT tools. A comprehensive and compassionate IT plan has been drawn out to change the face of rural Andhra Pradesh. We live from the bowl of our village. We are grateful and dedicated to its well being and development”, says the Chief Minister Dr.Y.S.Rajasekhara Reddy underscoring the significance of IT in rural up-liftment in the State.

As a result of the  above policy decision, the  Dr.Y.S.Rajasekahra Reddy Government took such unique initiatives to attract the  multinational IT companies  to Hyderabad and also tier-2  cities  in the State that  AP is now  far ahead of  other  states.

In order to fulfill its objectives the AP Government laid out a financial outlay and blueprint for building much sought after urban infrastructure in Hyderabad and Visakhapantam to attract the IT and BPO companies to the State.

In the last four years the AP government had laid out a budgetary allocation of Rs.3071 crore for promoting IT infrastructure in Hyderabad and Tier-2 cities in the state. 

It sector has been growing at an impressive  rate of over  40 percent  in each of the last  3 years  since Y S Rajasekhara Reddy took over  reins of the Government in  2004.

As per the  latest  statistics  40  IT Special Economic Zones  have been approved  by the Government of India, highest in the country  which will provide  8 lakh jobs  in the next  five years.

Similarly 15 IT parks were developed by private developers providing employment to 1.49 lakh software engineers and others.

The Andhra Pradesh government has not ignored the employment generation potential of the IT sector and has given it a full support in spite of its farmer’s friendly stand. Its industry friendly policies have attracted large investments from IT giants like – Microsoft, Oracle, Dell, Motorola, Genpact, Amazon, UBS, UTKS, Delloit and HSBC.

There were only 909 IT companies between 1997-2004 of TDP regime. But in last three years 325 IT companies, mostly the global giants have taken roots in Hyderabad and Visakhapatnam to bring the total to 1234 and also join the billion dollar club by recording a revenue of Rs.18582 crore in the year 2006-07 as against Rs.12,521 crore in 2005-06 by clocking  a  48.4 percent growth rate. AP ranks fourth in the national level with export performance in 2006-07.

The guidelines for the 2007-08 performance of the IT sector is set at Rs.26,000 crore by the fiscal of 2008, says industry experts.

In terms of IT jobs while hardly 85,945 software engineers were employed in the TDP regime, almost 65,854 new jobs were created in AP in the last two years alone and another 1,00,660 IT jobs were created during 2006-07.

It accounted for 52 percent of the total exports from the state at Rs.35672 crore and the contribution of the state in the IT exports to the national exchequer rose from 8.62 percent in 2003-04 to 14 percent in 2006-07.

As against an investment of Rs.Rs.3533 crore in TDP regime, AP has attracted Rs.10,442 crore in the last two years which speaks volumes for the friendly environment created by the Congress government. A record Rs.7000 crore investments were made in IT infrastructure during current year alone.

Thanks to the initiative and drive of the Congress government ITES and BPO units were being encouraged to set up shop in 2-tier cities and towns of the state to provide job opportunities to the young graduates and software professionals coming up from the rural engineering colleges.
Yet another unique initiative is the creation of Jawahar Knowledge Centers (JKCs) to provide training in soft skills to graduates and software professionals for easy absorption in IT jobs. Nearly 25,000 engineering students and 10,000 degree students have benefited from the training by JKC in the last three years.

The State has also earned a name for exhaustive networking with Optic Fibre Cable (OFC) connecting 10 district head quarters, 110 mandal headquarters and 950 villages to provide digital services through Rajiv Internet villages. By 2007 nearly 8168 Rajiv Internet Villages were planned of which 513 have already been grounded.

AP is also emerging as a hub of IT hardware with the Fab city project emerging as a SEZ. The State has attracted hardware global giants like Moser-Baer, AMD, INTEL besides the Sem-India to become partners in the semiconductor project and Fab SEZ in the state.

To achieve its objectives the AP government laid down a roadmap for both creation of infrastructure and also policies to attract global players to Hyderabad and was successful in grabbing even some of them who had earlier opted for Bangalore. The objective of the new ICT policy is to capture 30 percent of the national IT and ITES market through pro-active management policies.

Salient features of the initiatives were :

  • Promotion of Integrated satellite IT townships.
  • Creation of Plug and Play and Walk to Work kind of work environment for IT sector.
  • Creation of IT/ITES product specific SEZ’s.
  • Allot lands needed for Mega IT projects, Multinational IT companies and home grown IT units to build campuses.
  • Encourage private IT parks.
  • Provide  built-in facilities for SME’s
  • Offer Incubation centers for start-ups and first generation IT entrepreneurs.
  • AP has vast potential of talented rural human resource pool with 269 engineering colleges comprising of 93,385 engineers, 381 masters, 21,850 students and 4,25,811 graduates from 1670 colleges.
  • The Jawahar Knowledge Centres for each of colleges to train the   students in soft skills for IT jobs.
  • The state has drawn up a program for Tier-II IT locations like Visakhapatnam where companies like Satyam, Wipro, Infotech, Color Chips and Kenexa have set up shop.
  • IT infrastructure developed in Tier-III towns of Warangal, Vijayawada, Tirupati, Kakinada.
  • Creation of IT clusters, development of five integrated Satellite IT clusters.
  • Development of 10 more IT hubs at Kadapa, Kurnool, Anantpur/ Hindupur, Nellore, Guntur, Vizianagaram, Medak, Nalgonda, Mahboobnagar,Karimnagar.
  • Proposes  creation of 50 million sft.,  of infrastructure  to provide  five lakh jobs  through 40 IT SEZ’s ( Ten Government SEZ’s)  and  10 private  IT parks.
  • CP Brown IT city has come up in Kadapa District at Putlampalli village to provide 10,000 direct and 40,000 indirect jobs.
  • Creation of High level think tank committee representing the IT industry and government.
  •  Hyderabad  IT summit  and Indiasoft  in 2008  at Hyderabad supported by  STPI, HYSEA, NASSCOM, ESC, ELIAP IN 2008  to focus attention on  IT growth .
  • Andhra Pradesh has laid out an ambitious  road map for  BORADBAND  NETWORK  development  cable of  10 Gbps to each  district headquarters, 1 Gbps to each of 1128 mandal  headquarter, and  100 mbps  to each of the villages .
  • The network will provide broadband services to 40,000 government offices across AP.
  • The broadband will support the citizen services through E-Seva centres, Rajiv Internet Village Kiosks and web-based online services.
  • As of now 14 district HQs, 160 mandal  Hqs  being tested on Railtel fibre, and  OFC in 63  mandals  and 1750 villages.
  • AP Government is creating  a stand by G-G SWAN and a  new  broadband  network  with  voice, data and video communications which will be ready  and in place by December 2008.
  • MoU with ISRO for the APNET and SAPNET, satellite communications for   distance education, telemedicine, agricultural extension, E-governance, Awareness among SHG’s.
  • The network has 5 video channels and one data channel.
  • AP government has a successful e-Procurement portal which has successfully covered 22405 tenders aggregating Rs.51,455 crore on the platform. 
  • E-Procurement has created a cost saving of Rs.2700 crore.
  • Rajiv Internet providing rural kiosks and rural network through BEL and TIMES to build 5550 and 3068 Rajiv centres (513 centres grounded so far)
  • American Express cards, and Citi Bank cards, Rail ticketing, RTA temporary registration, Rajiv Swagruha applications.
  • Proposal to develop RSDP (Rural Service Delivery Points) in the entire state through internet.

PARISKARAM CALL CENTRE is set up with a toll free number 1100 to register public grievances for redressal by concerned departments, besides G2C and B2C services through the call centre.

As of September 2007, 1,04,508 calls  received  and 95863  resolved.  Calls are with regard to agriculture, education and elections.

APONLINE – a digital gateway of Government of AP has offered 35.55 lakh transactions and collected Rs.94.67 crore so far.

Andhra Pradesh has taken lead in setting up Centres of Excellence and Learning in the rural regions to promote computer literacy and also train manpower for the business and job opportunities available in the IT sector.

Rajiv Udyogasri
Under the Rajiv Udyogasri initiative it has taken up steps for skill up-gradation of students for enhancing their employability in IT sector.  It has entered into tie up with IT multinationals like Infosys, Genpact etc., for training and upgrading individual skills of students and plan to benefit a minimum of  two lakh students   under the program.

AP has set up  IIT’s in Adilabad  (Basar), Kadapa (Idupulapaya) and   Vijayawada (Krishna district) and has also introduced  Master Of  Science  in IT ( MSIT) course for  proficiency in IT studies.

It has set up  Institute for Electronic Governance (IEG),  operating  Jawahar Knowledge  Centres  in  all colleges   to provide  soft skills to young graduates, besides taking up IT projects in government departments and also provide  platform for TOFEL for  students.

The AP Government has provided a budget of Rs.85.00 crore for its IT initiatives in Governance during the current year.

Andhra Pradesh is thus at the forefront of converting its manpower pool into a creative work force to suit the needs of the ITES and BPO industry which have taken roots in the state.