In the last month, a whitepaper, which was jointly prepared by Telangana government, CBRE, KPMG, and HYSEA (Hyderabad Software Enterprises Association), revealed that the IT sector in Hyderabad is expecting a growth of nearly 10% in FY21. And this has happened despite the ongoing COVID-19 pandemic, which has compelled a huge number of IT companies across the country to opt for layoffs. While there’s a “Layoff Redressal Committee” to help organizations and employees address issues triggered by the crisis, there’re several factors that have helped the city to achieve this position.
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Major driving factors behind the outstanding growth of Hyderabad’s IT industry
Here’re the major industry-friendly environments created in Hyderabad to promote the growth of its IT industry.
- Initiatives by the government: The Telangana state government has been playing a crucial role in making its capital city a major IT hub by providing the support necessary for the IT industry’s growth. For example, it offers support for government land allotments along with other lucrative incentive packages such as 100% reimbursement of the registration fee, stamp duty, and transfer duty paid by IT companies on lease or sale deeds on their first transaction and 50% reimbursement of lease or sale deeds on their second transaction. It also offers cost reimbursement to IT companies for implementing energy-efficient equipment and conducting the retrofitting study. Additional incentives are also available for start-ups, IT product & R&D companies, SMEs and mid-scale companies, etc.
- Major IT centers: Hyderabad boasts of the major IT center namely the HITEC city that’s home to several IT parks like DLF IT SEZ, L&T Infocity, Cyberabad SEZ, Mindspace, among others. In the northwest part of Hyderabad, there’s another prominent IT suburb namely Gachibowli, which is home to some world-leading IT companies including Amazon, Microsoft, Google, Infosys, Accenture, and Deloitte.
- World-class infrastructure: Real estate costs in Hyderabad are significantly lower than that of the country’s other major IT hubs such as Bengaluru, Delhi NCR, and Chennai. Apart from this, the MMTS (Multi Modal Transport System) and the Outer Ring Road, which is an 8-lane expressway encircling the city, offer outstanding accessibility to all parts of Hyderabad. In terms of residential areas, Gopanpally-Gachibowli is the latest hotspot that has already become a sought-after destination among IT professionals and millennial homebuyers.
- Industry ready talent pool: With several top-tier universities and a huge number of colleges providing higher education in major disciplines, Hyderabad enjoys a highly diversified talent pool that’s ready to take the growth of the city to the next level. Most of these institutions have come up with active placement cells which let IT organizations connect with industry-ready professionals through campus recruitment.
Despite the impact triggered by the pandemic, Telangana has been able to register a 7.8% growth rate in IT employment while the country’s average was 4.59%. It has become possible mainly because of Hyderabad acting as the go-to destination for the IT industry. Additionally, HYSEA has been working with institutions to shorten the skill gap to prepare IT professionals focused on advanced technologies such as data analytics, artificial intelligence, and machine learning – which will eventually give the city’s IT talent pool a solid boost.