Telangana government is keen on taking the IT to smaller cities and towns of the state. Warangal, Nizamabad, Karimnagar, Huzurabad, and Jangaon have already made it to the list, and Khammam will follow suit soon. The state government wants to bring IT to all the districts offering incentives such as tax exemptions, and subsidies such as low-cost electricity costs to IT firms.
The incentives are rosier than what the companies get if they set shop in Hyderabad. IT Companies are also keen on foraying into tier-2 cities and towns since they provide a large pool of qualified resources, at a lower cost.
Cyient Limited, which is headed by B.V.R. Mohan Reddy, the former chairman of Nasscom, has established a Centre of Excellence in Warangal, to help its communications business expand operations. USA-based Eclat Health Solutions has established a center in Karimnagar and Kakatiya Sandbox, a hub for social innovation, has been set up in Nizamabad.
