Will Telangana Usher into a positive business environment

While Telangana has created furore in the political circles, it has impacted the growth of the industry in that part of the country, specifically in Hyderabad where many IT companies have their offices and research centers. Although it would be wrong to say that Hyderabad has not grown, it has not grown with the pace it should have. With Telangana culminating into a new state, the industry is hopeful of things being normal and expects that it would be easier for them to do business as usual.

What will Grow: Andhra or Telangana?

It has been an issue of debate for quite sometime between the locals. But the experts are of the opinion that it will bring small cities into focus. Cities such as Vizag and Vijayawada can emerge as new business hubs, while Hyderabad can further strengthen its image of offering best-in-class infrastructure for product and services firms.

"We see it as a welcome move for business growth as it ends the uncertainity surrounding the matter and the immediate impact will be seen as the stability in Hyderabad's business environment returns. IT companies that have invested in Hyderabad have done so owing to the availability of good infrastructure and talent which gives it a competitive advantage over other states. As Hyderabad still continues to enjoy these, more and more companies would invest in Hyderabad and will now be assured of stable business environment and governance," exclaims Suman Reddy, Vice President and Managing Director, Pegasystems India, Hyderabad.

Management With SharePoint

Like many of the executives based of Hyderabad, Reddy does not want to dwell on what can or cannot happen in the future, since the long-term impact of the state bifurcation cannot be predicted at this stage, "I see the decision as favorable one for the growth and expansion of the industry. IT industry will continue to grow as majority of the base is located in Hyderabad. In fact, I feel that post bifurcation, both the states will provide more avenues to the IT sector and will create enhanced investment opportunities in the tier-2 cities such as Vizag, Vijayawada, Kakinada, etc, which would mean larger infrastructure development resulting into a better economic growth for both the region," he adds.

Most of the companies hire talent from across India hence there will be no major impact on the employment scenario especially in the IT sector as employees for this sector come from all regions irrespective of the size or the state.

Moving On

But local entrepreneurs are not devoid of the tinge they feel for the divide of the state where Telugu is common. However, the reaction comes in mixed feelings. "I have mixed feelings about the state separation. While I feel disappointed that Telugu people got divided, I feel happy that the uncertainty and associated challenges will now come to an end. At the same time the political stability will kick start growth which was stalled in and around Hyderabad," expresses Dr BVR Mohan Reddy, Chairman and Managing Director, Infotech Enterprises,

In his opinion, the separation will not have any impact on industry. Hyderabad will continue to grow on account of outstanding infrastructure, cost competitiveness, skills availability, etc. But the industry is positive about the birfucation and feels that even Seemandhra will get benefited. The large investments in building new capital, educational institutions, and hospitals among others will provide spurt in economic growth. Given the indications, there will be a lot of physical and social infrastructure development in this region in future which in turn would enable industrial development.

Further, the bifurcation is going to encourage the industry. Hyderabad, despite the conundrum earlier when Telangana agitation was on, continues to grow. "Stability in the state has been very well taken care of, even during the agitation. Not a single day business loss was done due to this. The settlement of this issue, post the bifurcation, will help the entrepreneurial culture flourish. This comes as an opportunity for growth as Hyderabad has a better infrastructure to offer for growth," says Ramesh Loganathan, VP (Products) & Managing Director, Progress Software.

Fresh Beginnings

There could be new investments depending on the package of incentive that the government will provide to the region. In other words, fresh beginning might yield new opportunities with planned approach. Industry is very positive and finds as an opportunity to grow in the region with government support. New cities where infrastructure is developing and have strategic advantage can be developed to grow industry and entrepreneurial culture.