The two-week-old renewed struggle for a separate statehood for Telangana has started hitting the IT and ITeS industry of Andhra Pradesh. Senior officials of IT and ITeS Industry Association of Andhra Pradesh (ITsAP) said on condition of anonymity that a few multinational companies have already started questioning the current situation and even alerted their local offices here to ascertain the overall loss in productivity.
The current situation has forced a few BPO companies to distribute work to other sites, especially Bangalore, Chennai and Pune, to retain existing contracts from their clientele. Other sectors, such as manufacturing, power, hospitality, have already reported a loss of over R3,000 crore in the last two weeks.
The Telangana region is witnessing ?sakala janula samme? (general strike by all sections of society) demanding a separate state. According to ITsAP president L Suresh, the industry is in the process of making a representation to the chief minister to bring some clarity on the situation. ?Because of the lack of public transport system and frequent power cuts, our costs have increased by 10% in the last two weeks. Though there is Esma in place, we are seeking the government support as people movement, especially in BPO companies, have taken a complete beating,? he said.
The Andhra IT industry has provided direct and indirect employment to about 15 lakh people, of which 95% are in Hyderabad. The city ranks fourth in India with revenues touching about R40,000 crore.
The ?Cyberabad? area, which houses most of the IT and ITeS companies including bigwigs such as Microsoft, Oracle and Google, is learnt to have made some alternative arrangements for ferrying employees. However, with the declaration by the Telangana Joint Action Committee to intensify the agitation in the coming days, including a call for Hyderabad bandh on Friday, the industry is worried about the workflow.
A senior industry official said: ?A time-bound clarity alone can bring in a proper ecosystem in place.?’ A few US-based companies, having offshore development centres in Hyderabad, said that the parent companies are now forced to having a relook at hiring, keeping in mind the current situation in the state. ?While few companies have shifted their work to other sites, some companies are even thinking of shifting their base to neighbouring states,?’ the official added.
Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI) president VS Raju said: ?The situation is forcing multinational companies to look to other states for work. We request the government to ensure there is no disruption of industrial production.?