Vijayawada Becomes Softwarehub
Contrary to the claims of the State government that it is making strenuous efforts to promote the IT and IT enabled services industry in the Tier II and Tier III cities, the atmosphere for the IT industry in the city, which is expected to become the capital for the residuary Andhra Pradesh State, is not so encouraging.
However, due to the efforts of the Software Technology Parks of India (STPI), Vijayawada, a statutory body that works under the Union ministry of Communications and Information Technology, a few IT and IT enabled services companies are evincing interest to operate from the city, which is considered as the emerging Tier II destination after Visakhapatnam.
According to the officials of the STPI, Vijayawada, four companies including Pyramid Soft Solutions, Altitude Solutions Ltd, and Sailfish Solutions are going to launch their operations from the facility developed by the STPI at its office in the city. Another company is coming up on a private premises in the city soon.
“These companies would probably start their operations from February and we are going to inaugurate the newlybuilt facility at our office likely by the end of this month,” said officer-in-charge of the STPI, Vijayawada, S Ramesh.
The STPI has recently developed 4,000 sft space for the benefit of the companies in addition to the existing 2,000 sft space from where four start-up companies are operating.
Meanwhile, no medium or major companies are ready to operate from Vijayawada city despite the availability of state-of-the-art facility `Medha Tower’ with about 2 lakh sft, inaugurated in January 2010 at Gannavaram.
The L&T HiTech City Ltd, a joint venture of the L&T Info City Ltd and the Andhra Pradesh Industrial Infrastructure Corporation (APIIC), developed the IT park.
The park has so far attracted only four small and medium IT companies, which occupied just 13,306 sft.
The companies, Extranet Software Solutions, Galla IT Services, Indmax IT Services and Xact Data Discovery, employ only about 200 staff, while the developers promised creation of about 3,000 jobs.
It is said that management of the IT Park has failed to attract companies due to its terms and conditions in the allotment of the space for the companies and also several infrastructural deficiencies. They had raised the issue of addressing the cost factor, marketing strategies and transportation facilities to the IT Park at various fora.
“The L&T officials should address the issues of cost and other factors so as to attract more firms and living quarters should be provided inside the park as it is 30 km from the city,” said Managing Director of Galla IT Services, G.V.Rao.
Though some experts opine that the city would become the most preffered IT destination after the bifurcation, G.V. Rao said, “I do not agree with this observation since the companies are not willing to come here from Hyderabad. The employees are also not keen to work in Vijayawada.”
According to CII sources, Vijayawada region has excellent human resource as there are nearly one lakh graduates, including 13,500 engineers from 35 engineering colleges and 2,600 MCA graduates from 46 colleges passing out annually.
Confederation of Indian Industry’s Vijayawada Zone chairman M Lakshmi Prasad says that expansion and development of the Gannavaram airport is a must for the IT and ITeS companies’ development in Vijayawada.
He said HCL Technologies had held talks with L&T but not made any agreement due to bifurcation issue.
However, the STPI is going to construct an IT Tower with 50,000 sft space with an estimated cost of Rs 30 crore. “The foundation for the construction of a new IT Tower will be made during the inauguration of the recently developed 4,000 sft space,” said S Ramesh.
There are about 36 IT/ITeS companies in the city, with 22 coming under the STPI fold, four in L&T Hitech City (SEZ) and the remaining under non-STPI and non-SEZ fold.
Contrary to the claims of the State government that it is making strenuous efforts to promote the IT and IT enabled services industry in the Tier II and Tier III cities, the atmosphere for the IT industry in the city, which is expected to become the capital for the residuary Andhra Pradesh State, is not so encouraging.
However, due to the efforts of the Software Technology Parks of India (STPI), Vijayawada, a statutory body that works under the Union ministry of Communications and Information Technology, a few IT and IT enabled services companies are evincing interest to operate from the city, which is considered as the emerging Tier II destination after Visakhapatnam.
According to the officials of the STPI, Vijayawada, four companies including Pyramid Soft Solutions, Altitude Solutions Ltd, and Sailfish Solutions are going to launch their operations from the facility developed by the STPI at its office in the city. Another company is coming up on a private premises in the city soon.
“These companies would probably start their operations from February and we are going to inaugurate the newlybuilt facility at our office likely by the end of this month,” said officer-in-charge of the STPI, Vijayawada, S Ramesh.
The STPI has recently developed 4,000 sft space for the benefit of the companies in addition to the existing 2,000 sft space from where four start-up companies are operating.
Meanwhile, no medium or major companies are ready to operate from Vijayawada city despite the availability of state-of-the-art facility `Medha Tower’ with about 2 lakh sft, inaugurated in January 2010 at Gannavaram.
The L&T HiTech City Ltd, a joint venture of the L&T Info City Ltd and the Andhra Pradesh Industrial Infrastructure Corporation (APIIC), developed the IT park.
The park has so far attracted only four small and medium IT companies, which occupied just 13,306 sft.
The companies, Extranet Software Solutions, Galla IT Services, Indmax IT Services and Xact Data Discovery, employ only about 200 staff, while the developers promised creation of about 3,000 jobs.
It is said that management of the IT Park has failed to attract companies due to its terms and conditions in the allotment of the space for the companies and also several infrastructural deficiencies. They had raised the issue of addressing the cost factor, marketing strategies and transportation facilities to the IT Park at various fora.
“The L&T officials should address the issues of cost and other factors so as to attract more firms and living quarters should be provided inside the park as it is 30 km from the city,” said Managing Director of Galla IT Services, G.V.Rao.
Though some experts opine that the city would become the most preffered IT destination after the bifurcation, G.V. Rao said, “I do not agree with this observation since the companies are not willing to come here from Hyderabad. The employees are also not keen to work in Vijayawada.”
According to CII sources, Vijayawada region has excellent human resource as there are nearly one lakh graduates, including 13,500 engineers from 35 engineering colleges and 2,600 MCA graduates from 46 colleges passing out annually.
Confederation of Indian Industry’s Vijayawada Zone chairman M Lakshmi Prasad says that expansion and development of the Gannavaram airport is a must for the IT and ITeS companies’ development in Vijayawada.
He said HCL Technologies had held talks with L&T but not made any agreement due to bifurcation issue.
However, the STPI is going to construct an IT Tower with 50,000 sft space with an estimated cost of Rs 30 crore. “The foundation for the construction of a new IT Tower will be made during the inauguration of the recently developed 4,000 sft space,” said S Ramesh.
There are about 36 IT/ITeS companies in the city, with 22 coming under the STPI fold, four in L&T Hitech City (SEZ) and the remaining under non-STPI and non-SEZ fold.
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