IT sector bets big on newborn state

Sector hopeful that the Telangana government would bring clarity on industry-related issues such as taxation, single-window clearances and incentives to start-ups

Information technology (IT) majors in Hyderabad hope that the software sector would flourish in Telangana.

“On behalf of the IT industry, I welcome the formation of the 29th state of India," said Vice- President and Managing Director of Pegasystems Suman Reddy.

Reddy is hopeful that the new Telangana government would bring clarity on industry-related issues such as taxation, single-window clearances and incentives to start-ups.

“We hope there will be positive impacts on the industrial and economic prosperity in both the regions,” he said.

According to Reddy, multi-national companies are primarily looking for availability of skilled talent, cost advantage, good infrastructure and investor-friendly policies and Hyderabad continues to be one of the preferred destinations.

The Indus Entrepreneurs (Hyderabad chapter) President Murali Bukkapatnam suggested the Telangana government should set up more incubation centres, which could fuel innovation besides creating more industrial corridors and clusters beyond Hyderabad.

On the other hand, Seemandhra would offer greenfield opportunities and help new entrepreneurial ventures surface. “In entirety, both the states have immense potential,” Bukkapatnam added.

Progress Software Vice-President and Managing Director Ramesh Loganathan, said Hyderabad was the second largest city for the IT industry in India and this momentum would continue.

“Now that we have clarity on the administration and governance, both the regions will flourish with growth due to ample opportunities,” Netxcell Limited chief executive officer Debasis Chatterji said.

Executive chairman of Cyient Limited BVR Mohan Reddy hoped to see “two friendly Telugu-speaking states” flourishing together.

According to E Y Chief Policy Advisor D K Sirivastava, AP bifurcation will have significant implication on resource flow to both the states and on their economic development. In the long run, both the regions are likely to benefit but both of them will face considerable uncertainty in the immediate future.