Telangana turmoil hits minor impact on state IT sector

The Centre’s decision to move a resolution for a separate Telangana state and the subsequent unexpected turn of events since then has had a minor impact on the services rendered by IT and ITeS industries located in Andhra Pradesh, with most companies working on their business continuity plans with support from the administration.

“However, there have been concerns raised by some of the stakeholders like clients, employees, investors and top management in some of the companies around assured daily operations. There have been isolated incidents of IT and ITeS companies being targeted in both Hyderabad and Visakhapatnam and operations disrupted. Such incidents dent the confidence and have the potential to severely impact the brand of the state as an IT destination and impact our growth prospects,” said M Narasimha Rao, president of the Hyderabad Software Exporters Association (Hysea).

Hysea, an apex body representing the software industry in Andhra Pradesh, currently has more than 300 members including domestic and multinational IT companies.

In a press release on Monday, Rao said if this scenario continued, uncertainties around possible disruptions to business operations and public life will weaken the brand further.

Today, with so many global destinations for companies in the IT and ITeS industry for new businesses, Hyderabad and Andhra Pradesh can ill afford any dent to its image of a peaceful and business-friendly place. The industry provides round-the-clock services to global customers from centres across Andhra Pradesh and Hysea needs support from all the government authorities in the state to restore confidence and normalcy and assure a disruption-free and safe environment for everyone, he added.