IT, ITeS on a hiring spree in city. Estimates 50,000 job addition in 2012-13
Hyderabad News. Hindu 27.05.2012
 

Despite the dark clouds of the global financial crisis and the overhang of local uncertainties like the T-issue and political turmoil hovering over the state''s IT/ITeS sector, not only are new players looking at setting up shop in the state, IT/ITeS players are continuing with their hiring spree in the state. Biggies like Infosys, TCS, Genpact, Deloitte, Facebook, Bank of America, Thomson Reuters, Amazon, Google, Cognizant, Franklin Templeton among others are all growing their presence in the state, point out industry sources.

In fact, if the AP government''s estimates are to be believed, the total IT/ITeS sector hiring for 2012-13 could be of the order of around 50,000 professionals. "Several companies are showing interest in setting up shop in the state and existing players are also expanding their presence. We expect a total hiring of about 50,000 professionals in the sector this year," information technology & communications minister Ponnala Lakshmaiah said, adding that another 2 lakh indirect jobs were expected to be created by the sector during the current fiscal. Currently, the industry is estimated to employ around 2.7 lakh to 3 lakh professionals with an indirect employment of another 9-10 lakh people.

 

Industry estimates too suggest that just the top 25 players in the state are alone poised to add anywhere from 20,000 to 25,000 people to their payrolls during 2012-13. While TCS is learnt to be adding over 5500 people this fiscal, Infosys is poised to add a similar number of people at its upcoming Pocharam campus, which is slated to emerge as its largest centre globally with a total capacity of over 60,000 people over the next few years. Genpact, which is adding people at a furious pace at its campus in the Pocharam-Uppal belt, plans to add over 1500 people this year, even as Deloitte is understood to be adding around 3,000 people during the fiscal.

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"Right now there is a fairly positive sentiment. Have not seen or heard of any dampener at all," says a top honcho of a US-based giant that has its largest development centre in Hyderabad. "Companies are growing and adding numbers in Hyderabad," points out Bidhan Kankate, regional director, Nasscom''s AP office.

Adds V Rajanna, president, The IT&ITeS Industry Association of Andhra Pradesh: "If the state has to grow, IT has to grow as it accounts for 38% of the state''s revenues. With an estimated 2.3 lakh jobs to be created by IT/ITeS nationally, AP should add at least 35,000 jobs as it currently accounts for around 15% of the national industry revenues."

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Testifying to the big Hyderabad plans of global biggies is the huge amount of office space they have been lapping up in the city. A recent report by global realty firm Knight Frank showed that for the year ended March 2012, IT/ITeS accounted for a chunk of the 5.4 million sft space absorbed. The report pointed out that Deloitte had picked up 4.5 lakh sft space in Hi-Tec City, Cognizant has taken up 3.5 lakh sft at Gachibowli, IBM acquired 2.2 lakh sft at Manikonda, while Google India acquired 1.2 lakh sft at Kondapur and Amazon lapped up 86,000 sft space at Nanakramguda. This even as others like DuPont, Genpact, Convergys, Facebook, Bank of America, ICICI Lombard expanded their capacity in the city.

 

 

Here, industry experts point out that had the global economic conditions been better and the sword of T-trouble not been hanging over Hyderabad these numbers could have been much better. "Companies are jogging, not running. There is no scare but overall industry is in the cautious mode. Hyderabad was giving Bangalore a run for its money but the T-issue had a dampening effect. If everything had been okay with Hyderabad could easily have accounted for 17-18% of the total Indian IT exports," says an industry source.

However, there are others who feel that the kind of infrastructure and cost of doing business that AP offers certainly makes the city and state an ideal choice for IT biggies and would continue to bring them to the state. "I can definitely vouch for the superior infrastructure that Hyderabad offers. Which city in India has such a fantastic airport, roads and talent pool. We just need to market it better," feels Rajanna of ITsAP.

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Besides with attempts by ITsAP,  Nasscom and the state government underway to push Tier-II destinations like Vizag, Vijayawada, Warangal and Tirupati the next phase of growth could well come from these centres over a period of time. "Nasscom is pushing for growing Tier-II cities very strongly and a lot of homegrown players have already started setting up shop in these cities," explains Bidhan of Nasscom.

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Several companies are showing interest in setting up shop in the state and existing players are also expanding their presence. We expect a total hiring of about 50,000 professionals in the sector this year.