Next IT Hub Of AP

Vizag being a tier-2 city is running on new engines of growth-IT and ITeS.
The biggest segments in the region are government and education, and these are
the prime sectors that have been giving business to the channel community.

Commenting on this, Anand Narla, Ex-President, Vishakha Infotech Dealers
Welfare Association said, “Vizag IT business is doing very well and right now
the government, education sector, SOHO and SMB are the only segments that are
diving the industry.”

60 percent of the IT business in Vizag caters to education sector, government
and SOHO segment that comprise the only scope of business opportunity for the
channel fraternity. To tap the engineering talents in the city, Vizag accounts
for a large portion of the 90,000 engine­ering graduates that the state churns
out every year. On an average, the market size of Vizag is worth Rs 30 to 40
crore per year. The number of dealers present in Vizag is around 70.

Vizag

FACT FILE Major demand for IT from education sector Increase in retail demand Goldmine for engineering talent

CH Surendra, CEO, CA&S Solutions commented that Vizag is likely to emerge as
one of the growing IT markets for software development. The market is growing at
a rate of 40 to 45 percent, but due to the global recession in the last few
months, the market has slightly come down.

“Dealers in Vizag should start taking more initiatives like coming up with
roadshows and other marketing activities. They should also adopt reasonable
pricing strategy for all their products. It will also attract more customers
which will indirectly help the IT business market of Vizag grow,” added Surendra.

“One of the positive trends that is taking place in Vizag is the increase in
demand of retailing and SMB segment. Observing the boom in retail and SMB taking
place across the country, it is doing very well in the Vizag market,” said
Surendra.

Some of the branded IT products are playing significant role in contributing
their demand in the region. “HP, Lenovo, Dell and HCL are the brands that are
doing good business in here.

Especially, HP enjoys more coverage as compared to others, because of its
reputation in the market, potential, good retail, developed commercial team,
strong man­power and support services,” pointed Suresh Kumar, Director, Kolla
Infotech.

Predicting the future growth of the Vizag market, Kumar said, “Vizag seems to
have a promising future in terms of IT business. It is doing well and we are
expecting it to grow more in the coming times. It is going to be one of the
major IT hubs next to Hyderabad in Andhra Pradesh.”

LIPSHA DAS

lipshad@cybermedia.co.in