Delays by major IT firms cloud Visakhapatnam’s tech push
Despite State government incentives, two major IT firms have not begun full-scale operations in Visakhapatnam. Officials and industry experts warn that continued delays could discourage future investment.
Tata Consultancy Services has yet to start operations at the Millennium Tower in Rushikonda IT Park, even after interior work was completed. The government provided a ready-to-use facility and secured denotification of the premises from the Special Economic Zone after the company raised the issue with authorities in Delhi. TCS also received 21.6 acres on the same hill at a concessional rate, but construction has not started.
Interior work concluded nearly two months ago, and the company installed signboards soon after. TCS earlier told Andhra Pradesh Industrial Infrastructure Corporation officials that operations would begin after Sankranti and indicated January 29 as a tentative date. The deadline passed without a launch, and the company has not shared a revised timeline.
“A launch has been expected for months, but the lack of clarity is causing uncertainty,” a senior district official said.
Industry experts said delays by large firms could hurt the local IT ecosystem. “Big IT companies set the direction. When launches keep getting delayed, other investors rethink their plans,” an IT policy analyst said.
Officials said a launch this month appears unlikely due to major Eastern Naval Command programmes scheduled between February 15 and 25. They are now informally discussing March as a possible window.
Cognizant faces a similar situation. The government allotted the company 22.1 acres at Kapuluppada, where it laid a foundation stone on December 12. The company opened a temporary office at the IT Park and announced plans to begin operations with 500 employees. However, full-scale operations have not started.
Experts said delays by multiple firms could send negative signals to investors assessing Visakhapatnam as an IT destination.