Emerging Tech Hubs in Andhra Pradesh: Vizag, Vijayawada, and Tirupati Shine - Nasscom ReportNews Hello Vizag

Emerging Tech Hubs in Andhra Pradesh: Vizag, Vijayawada, and Tirupati Shine - Nasscom Report

A recent report by Deloitte India and Nasscom has unveiled the emergence of three cities in Andhra Pradesh—Visakhapatnam (Vizag), Vijayawada, and Tirupati—as significant players in India's technology landscape.

These cities have secured their spots among the 26 emerging technology hubs in the country, offering unique advantages for businesses and startups alike.

Visakhapatnam, often referred to as Vizag, stands out with its thriving ecosystem that houses more than 250 technology and business process management (BPM) organizations.

Meanwhile, Vijayawada has a growing presence of BPM-related and technology businesses. Tirupati, on the other hand, is rapidly making strides in the technology sector.

One of the key factors contributing to the allure of these tier-II cities is the substantial cost advantage they offer.

According to the report, businesses in Vizag, Vijayawada, and Tirupati enjoy a 25-30 percent cost advantage in terms of their talent pool and benefit from remarkably lower real estate rental costs—50 percent lower, to be precise—compared to tier-I IT hubs.

This economic appeal makes these cities an attractive choice for growth without the need for extravagant investments.

Beyond cost advantages, these tier-II cities have become fertile grounds for innovation, nurturing symbiotic relationships between startups and established corporations. For instance, Vizag boasts a remarkable 1,120 homegrown startups, with nearly 20 percent of them focusing on technology.

Similarly, Vijayawada is home to approximately 25,000 experienced professionals, thanks to its robust education ecosystem, which includes esteemed institutions like Andhra University, IIT-Tirupati, IIM-Visakhapatnam, Indian Institute of Petroleum and Energy, and IITDM-Kurnool.

Anil Kumar Tentu, CEO of the Andhra Pradesh Innovation Society (APIS), shared insights into the state's vibrant startup ecosystem. APIS is planning to establish a Center of Excellence on Metaverse for startups, with Microsoft serving as a knowledge partner.

Microsoft's collaboration will extend beyond curriculum design, as they will provide essential Metaverse modules to select colleges in the initial phase. Additionally, APIS is working to bring Google Startup School, which operates in 14 different parts of the country, and is exploring the possibility of securing a Google accelerator.

Expanding its footprint, APIS aims to establish a FabLab in collaboration with the Software Technology Parks of India (STPI), either in Tirupati or Vijayawada.

These initiatives are part of APIS's broader mission to foster a thriving startup ecosystem across Andhra Pradesh, including the three cities highlighted in the Nasscom and Deloitte report, as well as Kakinada.