Date:05/11/2008 URL: http://www.thehindu.com/2008/11/05/stories/2008110554710500.htm

Andhra Pradesh - Hyderabad

Two more IT SEZs to go on stream

Special Correspondent

Work apace in all zones of 55 IT SEZs sanctioned

HYDERABAD: The recent financial crisis in the banking and financial sector in the US has not impaired pace of IT development in the State with two IT SEZs set to start operations soon.

Of 55 IT SEZs sanctioned to the State, work is apace in all the zones with about 12 having already started operations while the incubation centre set up by the Software Technology Park of India will be ready in another four weeks at IT SEZ opposite Renigunta airport in Tirupati.

The first phase of yet another IT SEZ being developed by L&T in Vijayawada near Gannavaram airport will also be ready by the end of December, according to Information Technology and Communications Department officials.

Robust industry

“The IT industry has grown robust over the years in the State and is in a stage to withstand crises. Though banking, financial services, insurance verticals in the IT may be impacted to some extent and had seen some retrenchment in the IT companies supporting these services, it should have no impact on other verticals like manufacturing, product development. The domestic IT sector, both in the government and private sector, has potential to become strong component for IT business,” they said. The percentage of retrenchment as against 2.4 lakh IT workforce , they maintained was quite small and it was aimed at increasing productivity, quality and realign the workforce to suit the quantum of work. Major IT companies had not stopped recruitment, they added. The department officials also said that the IT sector would bounce back sooner than later.