Accenture joins TCS, Cognizant in Andhra Pradesh expansion drive

Accenture is proposing to establish a new technology campus in the southern Indian state of Andhra Pradesh, with plans to add about 12,000 jobs over time, according to three people familiar with the matter cited by Reuters.

The proposal is under review by the state government and includes a request for around 10 acres of land in the port city of Visakhapatnam. The land would be leased under a policy offering large employers plots at 0.99 rupees per acre if they commit to significant job creation.

Accenture, which has more than 300,000 of its 790,000 employees based in India, did not comment publicly on the plans. A state government official told Reuters the proposal is expected to be cleared, though approvals may take time. “It is not an unreasonable ask by Accenture, and the proposal will go through,” the official said.

State policy draws global IT firms

The move follows similar deals struck by Tata Consultancy Services and Cognizant. Both firms have secured land under the same Andhra Pradesh scheme to build campuses that together could generate roughly 20,000 jobs in Visakhapatnam. Cognizant has committed $183 million in investment, while TCS has allocated slightly over $154 million, according to the Reuters report.

The policy is part of Andhra Pradesh’s strategy to attract large technology employers to its smaller cities, using highly subsidised land leases as a draw. By encouraging major IT firms to anchor operations in Visakhapatnam, the state government hopes to create a technology hub that can rival established centres such as Bengaluru, Hyderabad and Pune.

Expanding beyond traditional hubs

Technology firms have been increasingly diversifying into Tier-2 Indian cities to cut costs and tap into local talent pools. Post-pandemic, the ability to hire and retain workers outside the traditional metros has improved as employees seek jobs closer to their hometowns.

Lower land and rental costs, as well as comparatively lower wages, add to the attraction. For companies like Accenture, which already has its largest workforce in India, expanding into cities such as Visakhapatnam represents both a cost advantage and an opportunity to deepen engagement with state governments eager to promote employment.

The expansion comes at a time of uncertainty for the global outsourcing industry. U.S. President Donald Trump has introduced a $100,000 fee for new H-1B visas, a programme widely used by Indian IT firms to place skilled workers in America. Indian technology companies have been among the largest beneficiaries of the H-1B system.

At the same time, lawmakers in Washington have debated imposing a 25 per cent tax on American companies using outsourcing services, a move that could prompt clients to delay or renegotiate contracts.