19 October 2016



With a view to foster growth in the Information Technology sector, the Telangana government has released four sectoral policies on data centers, data analytics, open data and cyber security as part of the 10 such other policies that were announced at the time of release of the State’s IT-Framework Policy earlier in April. The purpose of these policies is to help entrepreneurs and companies take advantage of these opportunities and set up facilities in the State. By introducing a legal and policy framework to cater to these specialised four sub sectors identified as the next wave of growth in the IT sector, the state government will support the creation of new innovative clusters such as data analytics parks, data centre campuses, creation of specialised wings and thematic training centers. The government plans to incentivise anchor companies, universities, start-ups and Small and Medium-sized Enterprises (SMEs) to participate in such clusters. The ITE&C department is in the process of outlining a policy for open data sharing and accessibility and will act as a nodal agency for all open data related acquisition, sharing and security issues.

Office Services view

The Telangana government has been very proactive in making in-roads into the large IT companies and have been regularly conducting roadshows to showcase their policies. Data centers are the next big thing in the IT sector as several large multinationals across sectors are cloud based companies with huge requirements for cloud storage space. Establishment of huge data centers can bring about a considerable upsurge in Hyderabad’s leasing as other cities in South India do not have any large data centers per se.    

Research view

This timely and opportune announcement by the Telangana government will help boost the occupier sentiment in the state, primarily in Hyderabad. With the city clocking in about 5 million sq ft gross absorption by the end of third quarter of 2016, a policy framework for the inclusion of specialised sub sectors within the Information Technology umbrella will further help in attracting new entrants as well as talent pool to Hyderabad. This in turn should help top up the existing steady demand for IT Parks and IT – Special Economic Zones in the city. It will also help provide a ready set of prospective occupiers that can absorb the upcoming supply in the city.   



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