Prime Highlight
- Accenture has proposed to set up a new campus in Visakhapatnam, Andhra Pradesh, creating about 12,000 new jobs in India.
- The Andhra Pradesh government is reviewing the request for 10 acres of land at a nominal lease rate under its special policy, with approvals expected soon.
Key Facts
- Accenture already employs over 300,000 people in India out of its 790,000 global workforce, making India its largest base.
- Other IT majors like TCS and Cognizant have recently secured land leases in Visakhapatnam, committing over $330 million and planning to create around 20,000 jobs.
Background
Global tech consultancy Accenture has proposed setting up a new campus in Visakhapatnam, Andhra Pradesh, aiming to generate about 12,000 new jobs in India. According to three sources familiar with the matter, the company has requested 10 acres of land under the state’s special policy that leases land to major firms at a nominal rate of Rs 0.99 per acre.
The Andhra Pradesh government is reviewing the proposal and is keen to bring Accenture into the state. A senior official confirmed that approvals may take time, but said the project is expected to be cleared. “It is not an unreasonable ask by Accenture, and the proposal will go through,” the official said.
Accenture already employs over 300,000 people in India, the largest base for the company worldwide. Out of its 790,000 global workforce, more than one-third are based in India. The new campus will further strengthen its presence in the country.
The strategy comes after recent agreements by Tata Consultancy Services (TCS) and Cognizant, which have acquired land leases in Visakhapatnam. TCS has committed over $154 million, and Cognizant will spend $183 million, and the two are likely to create approximately 20,000 jobs.
According to industry experts, global IT companies are moving towards Tier-2 cities like Visakhapatnam that have cheap land, rent, and wage rates. Post-pandemic hiring trends and a shift toward local talent pools have made smaller cities more attractive for expansion.
The proposal is made at a time when the U.S. IT market has its doubts, with the presence of new visa charges and potential outsourcing taxes, making India yet more significant in the world of technological firms.