Vizag benefits as IT giants, GCCs focus on shifting operations to tier-2 cities

The decision of major IT companies and Global Capability Centers (GCCs) to shift to tier-2 cities to reduce their cost of operations and address the problem of high attrition rate for specialised manpower has proved to be a big plus point for Visakhapatnam, popular for its Goa-type of topography with a cosmopolitan culture, breathtaking view of the green-capped hillocks and sun-kissed beaches.

Visakhapatnam, the largest city in Andhra Pradesh was recently ranked on the top of LinkedIn's 2025 "Cities on the Rise" report for its rapid growth in professional opportunities. The availability of abundant manpower rolled out by reputed universities and B-schools provide industry-ready skilled manpower to the employers. Another advantage considered for starting business in the city is the fact that those belonging to Andhra Pradesh, Odisha, Chhattisgarh and West Bengal prefer to move to the city from distant places due to easy access to their native places.

Two IT giants, Cognizant Technology Solutions (CTS) and Tata Consultancy Services (TCS) are getting ready to launch their operations shortly after the State Government sanctioned tailor-made incentives and land at on payment of a token amount Re.1 or 99 paise per acre at the posh Rushikonda and its adjoining areas. ANSR and Japanese pharma major Eisai have already announced to set up GCCs while there is high expectation that Visakhapatnam will become the data capital of India as the decision of Google to invest $15 billion--its largest outside the United States, along with Adani Group and AirTel on a AI-propelled data cluster at three locations in the city has become the talking point among the investors. Digital Connexion--a joint venture between Brookfield, Reliance Industries and Digital Realty has also announced an investment of $11 billion to build a one gigawatt (GW) of AI-native, purpose-built data centers in the city.

Secretary, IT, Electronics and Communications Bhaskar Katamnenin during the 28th National Conference on e-Governance held here recently said Visakhapatnam is positioned as "the Blue Edge of IT anf innovation" and is emerging as one of the India's growing tier-2 cities for IT and emerging technologies."

The State Government is holding talks with Infosys, which is in operation at Rushikonda on a rented building since past few years, to scale up its operations for developing a permanent campus. The government is insisting on job creation with certain deadlines to IT players for allotment of land for almost free. Inspired by the policy, another IT giant Accenture, is in talks with the government to get 10 acres for setting up a permament campus. While Cognizant has taken a building on lease at Rushikonda, in the same area, the government has allotted TCS the Millennium Tower A and B for temporary operations.

While Cognizant will invedst Rs.1583 crore for creating 8,000 jobs in three phases in advanced capabiities in AI and digital transformation delivery for clients world-wide, TCS is making an investment of Rs.1370 crore to build a large IT campus to create 12,000 jobs. Both the investments are aimed at transforming Visakhapatnam into a mjaor IT hub by rolling out a red carpet to major tech companies to invest in the region.