McKinsey To Help Andhra Retain Leadership In ITES

Hyderabad: | Updated: Jan 29 2003, 05:30am hrs
Attaining the top slot is difficult, but retaining it is more difficult. And this is what Andhra Pradesh (AP) is discovering.

When most of the state governments are gearing up to chase multinational companies (MNCs) and domestic companies to set up shop in their respective states, Andhra Pradesh is going one step ahead to retain its numero uno status in the IT enabled services (ITES) sector.

In a move to pre-empt the growing threat from neighbouring states, particularly the southern states ones and to position itself as a strong player in ITES, the AP government has hired leading global consultant McKinsey to have a direct interaction with ITES companies to sustain its leadership.

Speaking to eFE recently, a senior McKinsey official, who preferred to maintain anonymity, said that on behalf of the AP government, McKinsey has been having frequent interactions with various companies in the ITES sector on all major issues where the state can play a pro-active role and take necessary actions.

Despite the state governments ability to rope in major MNCs like Dell Corporation, CapMark Overseas, Deloitte Consulting to Hyderabad in the recent past, AP wants to improve its image further and make Hyderabad a stable ITES hub, the official said.

As part of this initiative, McKinsey has been discussing with the industry, seeking their opinions on the states role in providing infrastructure facilities, quality networking connectivity, tax sops, incentives, availability of skilled manpower, maintaining global standards apart from the states role in land acquisition and clearing proposals.

Based on the feedback from the industry, McKinsey would prepare a detailed report, highlighting the important issues which would either call for immediate attention or can be sorted out through mutual talks, the official said.

McKinsey continues to inform the state government through interim reports, he added.

As the demand for quality manpower continues to increase, McKinsey is also expected to suggest to the state government on how to regularise the training institutes and companies in the unorganised sector so as to upgrade themselves to meet the global standards, the official said.

McKinsey has associated with the AP government on various issues, including preparation of its Vision 2020 documents.