Background
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The Government of Andhra Pradesh has identified Information Technology (IT) as one of its major growth engines that would catapult the State into the future.The State has recognized that IT shall play a significant role in achieving its policy objectives like economic development, enhancing the quality of life, and providing good governance to its citizens.
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Andhra Pradesh has been able to achieve above 100 per cent CAGR (Compounded Annual Growth Rate) in the IT exports during the period 1992-2000.
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All this has been possible due to abundant availability of highly skilled IT manpower, World class technical and social infrastructure, and a pro-active Government.
· Existence of world-class institutes such as the Indian School of Business having tie ups with Wharton, Kellogg, the London School of Business, and the International Institute of Information Technology (IIIT) to meet the demands for highly qualified managerial and technical talent.
Investment Opportunities
1.1 Software Development
· Opportunities exist in the form of offshore development, domestic markets
besides the huge opportunities provided by the major e-governance initiatives of
the Government.
1.2 IT-enabled services:
· IT-enabled services are business processes and services performed or provided from a location different from that of their end users or beneficiaries and are delivered over telecom networks and the Internet.
· The State of Andhra Pradesh presents a gateway to the thriving IT-Enabled Services (ITES) opportunity, estimated to reach US $ 500 billion globally by 2008. During the year 2002-03, the ITES exports from A.P. were recorded at Rs.14110 million (U.S. $ 300 million). ITES exports have grown by 104% during 2002-03 compared to the national average of 65%
· The State government has initiated various reforms, and put in place investor and industry-friendly policies to enable rapid growth and development in IT sector.
· ITES majors such as GE Capital, HSBC and Dell have located significant ITES
operations in Hyderabad.
· The city of Hyderabad has been attracting world-wide attention as the leading ITES destination and the place where global companies have chosen to establish their offices.
· The Government of Andhra Pradesh is strengthening ITES sector by taking several initiatives to make available (a) Skilled manpower, (b) High quality infrastructure, (c) Conducive regulatory environment.
· Training courses in ITES (IT - Enabled Services) are provided in the form of alliances with reputed Universities in the state including Shared training facilities and infrastructure at subsidized costs.
· Andhra Pradesh offers infrastructure of a global standard to support the ITES sector.
· The Government has initiated a number of proactive measures and reforms, which include self-certification, ease in setting up the ITES facility, providing investment subsidy, making available land at subsidised rates etc.
· It has put in place an interface to facilitate the start up process and help ITES companies in obtaining Government approvals. This interface will have the authority to get all State Government approvals on a time bound basis. The ITES companies will interface with assigned account managers, who will take care of all the requisite approvals.
· The Government has amended the existing State laws, notably the AP Shops and Establishments Act, to make them more suitable for ITES companies.
· The government has engaged M/s. McKinsey & Co. to help the state to evolve a highly focused policy for the development of IT enabled services. This exercise is expected to begin to yield results during the year 2003 onwards.
For further details, please contact:
Principal Secretary
Department of Information Technology & Communications
Govt. of Andhra Pradesh
III Floor, D Block, Secretariat
Hyderabad 500 022, India
Phone: +91 - 40 -23456401
Fax : +91 - 40 -23450103
E-mail: prlsecy_it&c@ap.gov.in
Website: www.apit.gov.in