The company has plans to invest Rs 50 crore over a period of three years on the proposed project.
An MoU between the state government and HSBC Electronic Data Processing was signed in the presence of Andhra Pradesh Chief Minister, N Chandrababu Naidu, here on Friday. Principal secretary, ICT department, AP Dr J C Mohanty and chief executive officer of HSBC Electronic Data signed the MoU.
It is significant that the state governments recent efforts to promote the second-rung cities like Visakhapatnam has met with major success with HSBC Electronic, the second major exporter of ITES after GE Captial in Andhra Pradesh, deciding to locate its facility in the port city.
According to Dr Mohanty, the Andhra Pradesh government won this project against stiff competition from other state governments and overseas countries.
The decision by HSBC to locate its new project in Visakhapatnam is seen as a strong endorsement of the states industry-friendly policies. The success of HSBCs existing operations in Hyderabad and the governments efforts are the most critical factors which swung the project in favour of the state, Dr Mohanty maintained.
When contacted, Mr Malcomm Wagget, chief executive officer, HSBC Electronic Data Processing, refused to discuss in detail about the project and said that the company has proposed to recruit over 800 professionals before the end of 2004 for this project.
The state hopes the new HSBC facility will tilt the balance in favour of Andhra Pradesh and bring other major global players to locate their operations in the port city.