AP tech industry seeks policy push to woo GCCs
Captains of Andra Pradesh industry suggest TDP-led NDA govt to extend sops, infra to make the State, Vizag in particular, a hub for Global Capability Centres
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The imperative need is to start by targeting micro with 150 employees and mid-sized GCCs with 150-1,000 employees in sectors like IT, healthcare, life sciences, energy, utilities and logistics that have a competitive edge in AP. To position AP as a premier destination for GCCs, the government should provide financial incentives and support - Sreedhar Kosaraju, Convener of AP DTI Leadership Forum tells Bizz Buzz
Leverage Opportunity:
♦ AP govt already launched consultation process
♦ IT Minister Nara Lokesh invites feedback from stakeholders
♦ ANSR Research says Vizag emerging as a destination for GCCs
♦ Vizag has installed talent pool of 1.4 lakh, 30+tech startups
♦ Improved city attractiveness, EoDB
Visakhapatnam: The demand for doling out sops to attract investments into Global Capability Centres (GCC) in Andhra Pradesh in general and Visakhapatnam, the largest industrial city in the State in particular, is turning louder with the captains from the industry asking the newly formed TDP-led NDA Government to bring about required changes in the new IT policy.
Minister for IT and Electronics Nara Lokesh has already launched an exercise to elicit the opinion of the stakeholders before unveiling the policy. The government has already launched a consultation process.
ANSR Research recently confirmed that ‘Visakhapatnam is emerging as a destination for GCCs with an installed talent pool of approximately 1.4 lakh and hosting over 30 tech startups. It is among the top emerging cities ranking this year due to its improved city attractiveness and ease of doing business.’
ANSR Research stated that as a critical industrial city and ranked top among emerging cities, Visakhapatnam offers a compelling environment for GCCs to thrive and innovate.
“The city maintains among top cities for its attractiveness due to its low-cost of living, lower levels of pollution, and good internet services. Additionally, the presence of the MSME Technology Centre (MTC), a premium skill development centre established through the Ministry of Micro, Small, and Medium Enterprises under the auspices of the World Bank, boosts the city’s tech landscape,” the study found.
The landscape of GCCs has significantly evolved over the years from captive centres to GICs and then to GCCs, focusing now on innovation, research and development (R&D), and strategic technology development. With 50 per cent of global GCCs located in India and new GCCs looking towards Tier-II cities, it is imperative for the State to bring attractive policies to attract global GCCs to AP. While GCCs in India are well-positioned to become alternative HQs of MNCs, AP must leverage this opportunity to position the State as a premier destination for these centers, AP Digital Technology Industry (APDTI) Leadership Forum told Saurabh Gaur, Secretary, Higher Education, Skills, IT&C & RTGS, during a policy consultation recently.
Sreedhar Kosaraju, Convener of AP DTI Leadership Forum, underscored the need to lead the way in advanced technology development such as AI, ML, data analytics, and automation and create proprietary technologies and enhance digital capabilities. Driving digital transformation within their parent organisations, value creation and business impact contributing to revenue growth, efficiency, and competitive advantage should form part of the policy’s focus.
He told Bizz Buzz that the imperative need is to start by targeting micro with 150 employees and mid-sized GCCs (150-1,000 employees) in the sectors like IT, healthcare, life sciences, energy, utilities and logistics that have a competitive edge in AP. To position AP as a premier destination for GCCs, it is imperative to implement following strategic policy measures addressing these dynamics: Financial incentives and support, tax benefits and offer attractive incentives for GCCs. For instance, Tamil Nadu provides a payroll subsidy for high-paying jobs, which can be emulated to attract skilled professionals.
On subsidies and grants, he said the authorities should provide subsidies on power, water, and other utilities, and grants for setting up infrastructure. Financial support should be aligned with the specific needs of GCCs focusing on high-end technology and innovation. On talent development and education and skilled workforce, he wanted more investment in building a highly skilled talent pool, particularly in emerging technologies.
He said there is a need to establish two or three frontier tech universities to develop talent in emerging tech. As GCCs are multidisciplinary, focus on building skills in various domains along with emerging tech. Academia-industry collaboration should be incentivised. Partnerships with universities and training institutes are required to create tailored courses and upskilling programs. Calling for establishing Centers of Excellence (CoEs) in collaboration with industry leaders to drive innovation and skill development, he said infrastructure development should be the topmost focus area. As part of building the ecosystem, availability of high-quality commercial real estate with robust digital infrastructure available in cities like Bengaluru and Hyderabad should be developed to set benchmarks in providing such spaces, making them attractive for GCCs.
