ITsAP drafts note to guide future growth of IT sector

The IT and ITeS Industry Association of Andhra Pradesh (ITsAP), a registered apex body with over 300 members representing the software industry in the state, is drafting a note with recommendations to ensure more growth in the IT sector.

“We have started working on the note two weeks ago, and it will be ready (for submission to the state government) in 30 to 40 days from now,” ITsAP president, V Rajanna. told Business Standard.

The recommendations being proposed by ITsAP include appointing a dedicated full-time IAS officer in Tier-II cities who would be responsible to grow the IT and ITeS industry in cities like Visakhapatnam, Warangal, Tirupati, Vijayawada and Kakinada.

“We are also asking the government to have more flight connections from Europe and North America, the largest markets for the sector, if we really want customers to visit Hyderabad, besides taking the initiative of promoting incubation labs to support small and medium businesses (SMBs),” he said.

Rajanna said many colleges had been coming forward to provide infrastructure to set up incubation labs on their campuses for SMBs. ITsAP has extended invitations to all the colleges in the state to take part in ‘Advantage AP 2012’, a two-day event scheduled to be held in Hyderabad from June 21.

Andhra Pradesh is the fourth-largest IT exporter, contributing 15 per cent to the nation’s exports as well as in terms of talent. The state clocked IT and ITeS revenues of Rs 35,000 crore in 2010-11, which is expected to cross the Rs 40,000-crore mark in FY12. SMBs account for 21 per cent of the IT and ITeS revenues in the state and 33.6 per cent of its employment.

Stating that ITsAP had been instrumental in bringing the IT sector in the state under the Essential Services Maintenance Act of 1971, and the special preferential policy for SMBs last year, Rajanna said the association was encouraging SMBs to utilise this policy. ITsAP had proposed that 10 per cent of government businesses should be awarded to SMBs.

According to Sanjay Jaju, principal secretary (information and communications technology), the whole idea of Advantage AP, which is expected to see the participation of 200 companies this year, was to make it a knowledge summit, and to provide opportunities for companies to interact with the government, and create a platform for companies to enter into mutual partnerships.

“This year, we have partnered with Zinnov, a management consultancy company, to come up with a report on Andhra Pradesh. It will talk about infrastructure, talent and the ecosystem in the state. The report will be released on the first day of the event,” Rajanna said, adding that the conference will also have a session on the infrastructure plans for the state for the next five years.