In a massive boost to the city’s IT/ITeS sector, over a dozen major companies from across the globe are now making their way into Hyderabad’s upscale western corridor. While some of them are setting up their first India office here, a few others are expanding their India footprint with a presence in the IT city, said market insiders.On this list are US-based firms such as Shure, Micron Technology, F5 Networks, MathWorks, Clean Harbors, Conduent, among others. There’s also Legato Health Technologies, Thryve Digital, Bombardier and China-based Thunder Software Tech (launched on Monday) that have made Hyderabad their new destination.
“There’s a steady influx of international players into the local market. While the launch dates are staggered, most of them are expected to start operations by early 2019,” said an industry insider, adding that an equally large number of firms are in talks with the authorities to set shop in the city, in the future.
The claim is corroborated by Jayesh Ranjan, Telangana’s IT secretary. “It is a continuous process. At any given time, we are in talks with half a dozen such firms, interested in exploring Hyderabad as a probable business destination,” Ranjan said, listing out the reasons for this growing interest among tech companies.
“The infrastructure available to them here is of very high quality and cost-effective. Companies also believe that it is easier to find talent in Hyderabad. The fact that the ecosystem in the city is very conducive for innovation/growth and the government is extremely proactive, are also factors working in Hyderabad’s favour,” he added.
The advent of these firms, apart from generating employment – about 200 to 500 jobs (on an average) per company to begin with – has also bolstered the growth of the commercial realty sector.
According to rough estimates, each of them has leased out office spaces that are anywhere between 50,000 sq ft and 3 lakh sqft in size.
“Traditionally, Bengaluru has been the entry point for companies coming to India. But for the first time, we have seen Hyderabad gaining a strong foothold over the last 2-3 years. While 2017 was a record year for the office market, 2018 will be even better. Our estimates suggest that we are going to touch 8-10 million sq ft of annual leasing this year and it will only get better going forward,” said Veera Babu, managing director (Hyderabad), Cushman & Wakefield.