Telangana and Andhra Pradesh, the New Hotspot for IT and GCCs
While Bengaluru continues to solidify its position as India’s IT and GCC hub, a status it is likely to maintain for years to come, neighbouring states are catching up fast. For decades, Bengaluru has benefitted from its abundant talent pool, which makes it an ideal choice for companies looking to set up offices and expand their presence. Karnataka is being challenged by Andhra Pradesh and Telangana, which are trying hard to attract GCCs and Indian IT for operations. Thus, both states are the second-best options for firms. Andhra Pradesh IT minister Nara Lokesh recently announced that TCS will establish its office in Visakhapatnam within three months. However, operations will initially commence from a temporary location, likely the Millennium Towers in Rushikonda. The minister also shared updates on discussions with another IT giant, Cognizant, during his recent visit to the World Economic Forum (WEF) 2025 in Davos, hinting at positive developments to be announced soon. Lokesh stated that the government aims to create five lakh IT jobs in Visakhapatnam over the next five years. “TCS is looking for an ideal location to set up its permanent campus in the city. Once it is finalised, it may take two to three years for construction,” Lokesh said. “We are keen on exploring opportunities in deep tech, big data and AI. Our government has decided to provide land to the first 500 IT companies at very low rates compared to any other state in the country.” HCLTech was also given a similar facility in Vijayawada and has been in expansion mode since. Hyderabad Takes it Forward This is in line with HCLTech’s announcement of its global delivery operations in Hyderabad, which includes the launch of a new technology centre expected to generate 5,000 additional jobs. The announcement was made following a meeting between Telangana CM A Revanth Reddy, IT minister D Sridhar Babu, and HCLTech’s global CEO and MD C Vijayakumar at the WEF. The new centre, which spans 3,20,000 sqft, will focus on delivering advanced cloud, AI, and digital transformation solutions to global clients in industries such as high-tech, life sciences, and financial services. Speaking on HCLTech’s expansion, Vijaykumar said, “Hyderabad, with its world-class infrastructure and high-quality talent pool, has been a key location on HCLTech’s global network. The new centre will bring cutting-edge capabilities to our global client base and contribute to the local technology ecosystem. Furthermore, Jayesh Sanghrajka, group CFO of Infosys, met with Telangana IT and industries minister Duddilla Sridhar Babu at the WEF. They announced that the firm plans to expand its campus in Pocharam on the outskirts of Hyderabad. This will add around 17,000 jobs to the campus. The new IT towers, which will be constructed in the first phase with INR 750 crores, will be completed in the coming 2-3 years. Infosys currently employs around 35,000 people at its Hyderabad campus. Krishna Vij, VP of IT Staffing at TeamLease Digital, said that both Telangana and Andhra Pradesh, especially Hyderabad, have a solid pool of tech talent. “Telangana, in particular, stands out because of its large supply of fresh IT graduates and its position as a major tech hub, which draws in both domestic and global companies looking for skilled professionals,” Vij told AIM. “These states have some of the top institutions like IIITs, NITs, and a wide network of engineering colleges, so there is a steady flow of STEM graduates entering the market,” Vij added that Proactive government policies, infrastructure development, and skilling programs in these states make them attractive destinations for IT and GCC investments, further enhancing talent availability. When it comes to GCCs, according to the Q3 report by ANSR, over 450 Forbes Global 2000 companies operate over 825 GCCs across the country, employing more than 1.3 million professionals. Hyderabad (110 GCCs and 1.90 lakh employees) follows Bengaluru (285 companies), attracting interest due to its infrastructure, talent availability, and business-friendly policies. The Telangana government has signed a memorandum of understanding (MoU) with the US Chamber of Commerce’s US India Business Council, aiming to focus on collaboration in IT, AI, electronics and GCCs. Andhra Leads with Tier-II & III Cities Meanwhile, the Andhra government has introduced the Andhra Pradesh IT & GCC Policy 2021–24, aiming to incentivise and facilitate the establishment of prominent Fortune 500 companies within its borders. This policy focuses on creating a world-class electronics manufacturing infrastructure to transform the state into a hub for IT and electronics. Cities like Visakhapatnam have seen significant growth in the IT sector, with the establishment of IT Special Economic Zones and incubation centres such as the Sunrise Startup Village and Fintech Valley Vizag. These initiatives promote the city as a global fintech capital. The inauguration of Millennium IT Towers 1 and the planned Millennium IT Towers 2 further bolster the state’s IT infrastructure. Telangana, similarly, has become a preferred destination for GCCs. Notably, pharmaceutical giant Eli Lilly announced plans to establish a new global capability centre in Hyderabad and hire over 1,000 professionals. SEI Investments is considering Hyderabad for a new GCC and intends to create high-skill engineering and financial jobs over the next three years. The Telangana government has been proactive in fostering IT growth beyond Hyderabad. Collaborations with organisations like ITServe Alliance aim to create 30,000 IT jobs in Tier-2 and Tier-3 towns, promoting balanced regional development. Additionally, the state has set up IT hubs in cities such as Warangal, Khammam, Karimnagar, and others, further decentralising IT growth. “Tier-2 and Tier-3 cities stand to benefit significantly from the expansion of IT companies,” Vij said that while salaries in these regions may be lower than in Tier-1 cities due to the lower cost of living, firms are expected to offer competitive pay for specialized roles like AI, data analytics, and cloud computing. The state governments of the two states are already working towards that goal. For instance, Lokesh emphasised efforts to provide IT companies in Vizag with better bus connectivity, street lighting, and police patrolling. He mentioned upcoming discussions with the finance minister on providing incentives to IT units, reaffirming the government’s commitment to creating a robust IT and GCC ecosystem.
Andhra Pradesh government has decided to provide land to the first 500 IT companies at very low rates compared to any other state in the country.
Karnataka is being challenged by Andhra Pradesh and Telangana, which are trying hard to attract GCCs and Indian IT for operations.
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Mohit writes about AI in simple, explainable, and often funny words. He's especially passionate about chatting with those building AI for Bharat, with the occasional detour into AGI.