Cognizant Technology Solutions, a global leader in IT services, is making headlines with its latest investment in Andhra Pradesh. The company has been allotted a 50-acre plot at an almost symbolic rate of just 99 paisa per acre in Visakhapatnam, a move that highlights both the state government’s aggressive push to attract technology investments and Cognizant’s confidence in the region’s growth potential. This landmark initiative is expected to generate 8,000 new jobs, offering a significant boost to the local economy and further cementing Visakhapatnam’s status as a rising IT hub.
Major Investment to Transform Andhra Pradesh’s Tech Landscape:
Cognizant’s decision to invest ₹1,582.98 crore in setting up a world-class IT and IT-enabled services (ITES) campus in Visakhapatnam marks a pivotal moment for Andhra Pradesh’s technology sector. The state government’s allocation of 21.31 acres at Kapulauppada under the Visakhapatnam Metropolitan Region Development Authority at a nominal rate shows its commitment to making the region a magnet for global technology companies. This is not the first time Andhra Pradesh has made such a move—Tata Consultancy Services (TCS) was also allotted land at a similar rate earlier this year, reinforcing the state’s strategy to foster a vibrant IT ecosystem.
The new Cognizant campus is set to be fully self-funded, reflecting the company’s strong belief in the long-term prospects of Andhra Pradesh. The investment is expected to generate 8,000 jobs over the next few years, providing much-needed opportunities for the state’s skilled workforce and supporting the local economy. Cognizant has set a target to commence commercial operations by March 2029, signaling a long-term commitment to the region.
Government’s Vision and the Role of Strategic Incentives:
The allocation of land at such a nominal rate is part of the Andhra Pradesh government’s broader vision to position Visakhapatnam as the IT capital of the state. IT Minister Nara Lokesh has played a key role in driving this agenda, actively promoting investments and creating a favorable environment for technology companies. The move is seen as a major win for the government, which has been working to attract marquee names and establish Visakhapatnam as a major destination for IT and innovation on India’s east coast.
The state’s approach is yielding results, with major players like Cognizant and TCS making significant commitments. These investments are not only expected to create direct employment but also have a multiplier effect, spurring the growth of ancillary industries and services in the region. The government’s strategy of offering land at a nominal rate is designed to lower entry barriers for companies, making Andhra Pradesh an attractive destination for future technology investments.
Impact on Local Economy and Job Market:
The establishment of Cognizant’s new campus is poised to have a transformative impact on the local economy. The creation of 8,000 jobs will provide relief to unemployed youth and skilled professionals in the region, addressing a long-standing demand for more high-quality employment opportunities. The presence of a global IT leader like Cognizant is also expected to attract other technology firms, further enhancing Visakhapatnam’s reputation as a promising IT center.
The project is expected to drive demand for housing, transportation, and other services, benefiting local businesses and contributing to the overall development of the area. The government and industry leaders alike have expressed optimism that this initiative will serve as a catalyst for further investment and innovation in Andhra Pradesh.
A New Era for Visakhapatnam:
Cognizant’s investment in Visakhapatnam signals a new era for the city and the broader region. With its strategic location, supportive government policies, and growing reputation as an IT hub, Visakhapatnam is well-positioned to attract additional investments in the coming years. The success of this project could inspire similar ventures by other companies, accelerating the transformation of Andhra Pradesh into a major technology destination.
As Cognizant prepares to break ground on its new campus and begin operations by 2029, the company’s commitment stands as a testament to the state’s potential and the effectiveness of its investment-friendly policies. The partnership between Cognizant and the Andhra Pradesh government is set to deliver lasting benefits, driving economic growth, job creation, and technological advancement for years to come.
