From Metros to the Coast: Cognizant’s ₹1,583 Crore Vizag Leap Promises 8,000 Jobs and a New IT Era

Cognizant Technology Solutions has made a record investment of ₹1,583 crore (about $183 million) to set up a world-class IT/ITES campus in Visakhapatnam, Andhra Pradesh, one of the biggest investments in tier-2 cities in India. The project, cleared by the State Investment Promotion Board and led by Chief Minister N Chandrababu Naidu and IT Minister Nara Lokesh, will create 8,000 jobs and become break-even by March 2029.

 

In a move that reflects Andhra Pradesh's aggressive push to position Visakhapatnam as a top IT hub, the government has leased out 21.31 acres of land at Kapuluppada to Cognizant at a token rate of a mere 99 paise an acre. This comes on the heels of the state's recent lease of land to Tata Consultancy Services (TCS) as well, investing ₹1,370 crore in Vizag to create 12,000 jobs, part of a broader trend of IT giants diversifying out of metro hubs.

 

Cognizant's growth is also in tandem with its real estate strategy of cutting costs by shifting away from India's metros to the growth urban cities. CEO Ravi Kumar S had previously signaled it would relinquish 11 million sq ft of office space in the big metros in lieu of investments in cities like Visakhapatnam. The company's shift comes as global IT firms seek cost savings in the face of uncertain demand, riding on real estate monetization and wage discipline.

Andhra Pradesh government's vision and drive to make Visakhapatnam the state's IT capital are attracting massive investments that are opening the doors for the city to become a digital hub. The Cognizant's new campus will act as a spur for the city's technology hub, offering high job opportunities and further cementing Vizag as a rising IT hub.

 

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Source: BusinessWorld, NDTV, New Indian Express, NDTV Profit, Yahoo Finance, Economic Times, News18, Times of India.