'Any decision would mean stability'

IT industry hopes the decision will end investment-hampering ambiguity

For the information technology (IT) industry in Andhra Pradesh, a decision on the separate Telangana statehood issue, “this way or that way”, is sure to bring smiles, believe some leading lights.

For, this would end three-and-a-half years of ambiguity and ensure stability to the business. “It (Centre's likely decision) is a good thing to happen because we finally became decisive. If there is a decision today, it will still be a positive implication for the IT industry and my company,” B V R Mohan Reddy, Chairman and Managing Director of Infotech Enterprises Ltd, told Business Standard. The company operates in two other states, too, and employs 10,000 people in all, the majority in this state.

Stating the industry had faced serious challenges after April 2009, resulting in a slowing in growth, he says even if we look at Andhra Pradesh with Telangana carved out of it, it will still have the second largest coastline and four airports, of which one will be an international airport (Visakhapatnam).

“The key challenge in India is that we have a tremendous amount of urbanisation happening. The good opportunity at this point is that there will be another Hyderabad that will be created within Andhra Pradesh, though it might take time. That's the way the nation has to progress,” he says. However, the IT and ITeS Industry Association of AP (ITsAP), a registered apex body with a little more than 300 members representing the software sector in the state, said it was premature to comment on the issue.

Suman Reddy Edunuri, India vice-president and managing director of Pegasystems Inc, is another one who thinks the decision would put an end to the ambiguity and stabilise business. “Henceforth, there will be no agitations, unrest and frequent bandhs, resulting in traffic being disrupted, which had been the biggest hindrance to many multinationals and major companies who were looking not just to expand but also to set up base in India.”

Pegasystems is a Cambridge-based provider of business process management and customer relationship management solutions with a centre in Hyderabad.

Edunuri added: “We look at infrastructure, availability of talent and costs, before making any investments. No company has come here because of Telangana, Andhra or Rayalaseema, The companies made investments because they came to Hyderabad.”

Of the 779 engineering colleges in the state , as many as 400 are in the Andhra region, says Reddy. Infotech has no intention to set up a development centre in Warangal (Telangana region), as it was a satellite of Hyderabad.

Pegasystems says its employees would not face any issue as the regional divide would not come into corporate or work cultures.  “We believe Hyderabad will continue to have that competing opportunity. If today a decision is made to give out a Telangana, I anticipate that it will be a positive thing to happen for the industry.”