Andhra Pradesh despite rolling out incentivies and policies to attract IT giants in to the truncated state could not manage to woo any significant players so far. It is said that the state is lagging critical mass to compete with its closest rival, Hyderabad to compete in IT race.
The Office Space in Vishakapatnam and Vijayawada are still costly than in Hyderabad increasing the operating costs. Also there is a dearth of skill in the region as most IT employees opting for Metros like Hyderabad and Bangalore. Also Hyderabad has premiere institutions like IIIT and CBIT to provide the creamy lawyer of IT developers which is again a backlog for AP cities.
The state government needs to focus more on SMEs, start up companies and invite NRIs to focus on high end niche services besides offering loans and incentivies. Also it should attract its man power back from other metros to help in creating critical mass in next two to three years
