A Timely Move for India’s IT Industry
At a time when global tech consulting faces uncertainty from U.S. visa policy changes and tightening outsourcing rules, India’s IT sector is reorienting its growth strategy closer to home. Accenture, one of the world’s largest consulting and technology services companies, is preparing to establish a new campus in Andhra Pradesh, a move that could create as many as 12,000 jobs. This step not only reinforces India’s role as the company’s backbone but also signals a wider shift as multinational firms increasingly target Tier-2 cities for expansion.
Why Andhra Pradesh?
The proposal, currently under review by the state government, involves Accenture acquiring about 10 acres of land in Visakhapatnam under a newly introduced policy that leases land to major employers at a symbolic cost of just ₹0.99 per acre. Similar incentives have already attracted Tata Consultancy Services (TCS) and Cognizant, who together plan to generate about 20,000 jobs in the city. Cognizant has pledged $183 million, while TCS is investing over $154 million in their upcoming facilities.
For Accenture, Visakhapatnam offers more than cost savings. The city’s growing talent pool, lower rental expenses, and improved infrastructure position it as a strategic hub to balance rising costs and hiring challenges in metropolitan centers.
Accenture’s Expanding Indian Footprint
India already hosts the largest share of Accenture’s global workforce—over 300,000 out of its 790,000 employees. The addition of a major campus in Andhra Pradesh would deepen this dependency and strengthen India’s role as the company’s innovation and delivery engine. By choosing to grow domestically rather than rely solely on global mobility, Accenture is adapting to both post-pandemic workforce realities and new geopolitical risks.
While the company has not disclosed its exact investment in the Andhra Pradesh project, officials familiar with the matter believe the proposal will be approved soon. One state representative remarked, “It is not an unreasonable ask by Accenture, and the proposal will go through.”
The decision comes against the backdrop of significant disruptions in international hiring practices. The recent hike in H-1B visa application fees to $100,000, announced by the U.S. government, is expected to particularly hurt Indian tech workers, who account for over 70% of H-1B holders. For companies like Accenture, which rely heavily on Indian talent for U.S. projects, this adds both financial and operational pressure.
Moreover, ongoing debates in Washington about imposing a 25% tax on firms using outsourcing services further complicate the global IT services environment. By anchoring more jobs in India, Accenture and its peers aim to hedge against these uncertainties.
Tier-2 Cities: The Future of Tech Expansion
Post-pandemic hiring patterns have revealed another shift—employees increasingly prefer working closer to home rather than relocating to metros. Cities like Visakhapatnam, with their improving infrastructure, lower costs, and emerging tech ecosystem, are now becoming attractive growth centers. Accenture’s move aligns with this broader industry trend, ensuring easier access to local talent while supporting balanced regional development.
A Strategic Win-Win
Accenture’s proposed campus in Andhra Pradesh underscores both opportunity and resilience in India’s IT story. For the company, it offers a sustainable growth path amid international policy turbulence. For the state, it promises job creation, economic development, and global visibility.
If approved, the project will mark not just an expansion of office space but also a statement of intent—that India’s future in global IT leadership will increasingly be shaped in its Tier-2 cities, where innovation meets opportunity.
(With agency inputs)
