EG to develop into IT hub

Dec. 9: With a STPI (Software Technology Parks of India) incubation centre at the district headquarters city of Kakinada, East Godavari, is fast developing into a IT hub with 23 IT companies starting their activities in the last two-and-half years under the Kakinada STPI.
Of these, 21 are in and around Kakinada city and two more are at Tanuku in West Godavari.
The Union minister of state for defence, Mr M. M. Pallam Raju, was instrumental in starting the incubation centre at Kakinada.
With more than 100 engineering and professional colleges in both the Godavari districts of East and West, with JNTU-Kakinada in the district, and availability of much needed professional expertise, IT activity is fast picking up in the area. The III-tier city status to the Kakinada centre with cost factor as a major advantage also helps development of the activity in these parts.
With cities like Bangalore, Chennai and Hyderabad in I-tier category and II-tier status to Vijayawada and Visakhapatnam, the onus has fallen on III-tier cities like Kakinada, Tirupati and Warangal with several IT companies preferring activity in these parts.
With rail and road transport in addition to air travel facility at Rajahmundry, several IT firms are inclined to Kakinada.
The vice-chancellor of JNTU-Kakinada, Prof. Allam Appa Rao, said that the effect of economic recession was gradually disintegrating and the demand for IT professionals was fast returning. He said that several IT companies like Wipro and TCS had started campus re-cruitment which is a healthy sign for the development of IT sector in these parts. The deputy director of Kakinada STPI, Mr B. Suresh, said that three more new units including Honeywell company had shown considerable interest in taking up activity at Kakinada. In addition, software exports to the tune of more than Rs 15 crore from these units during 2008 to Europe and the US was also an encouraging sign of activity.