Taking advantage of the disappointment of Bengaluru's Information Technology companies over the latest legislation enacted by the Karnataka government, TDP general secretary and Andhra Pradesh IT minister Nara Lokesh extended an invitation to these companies to relocate to his state.
The National Association of Software and Service Companies (NASSCOM) in Bengaluru expressed strong disappointment over the Karnataka State Employment of Local Industries Factories Establishment Act Bill, 2024, which mandates a 75% reservation for local professionals in private firms.
In a statement issued on Wednesday, NASSCOM expressed serious reservations about the new legislation, warning that such restrictions could force companies to relocate due to a scarcity of local skilled talent.
Reacting to the NASSCOM statement, Lokesh took to the social media platform X to invite the software companies to relocate to Andhra Pradesh.
“Dear @NASSCOM members, we understand your disappointment. We welcome you to expand or relocate your businesses to our IT, IT services, AI, and data center cluster at Visakhapatnam,” he said.
Lokesh assured that the Andhra Pradesh government will offer best-in-class facilities, uninterrupted power, infrastructure, and suitable skilled talent for the IT enterprise without any restrictions from the government.
“Andhra Pradesh is ready to welcome you. Please get in touch!” he tweeted.
Earlier, NASSCOM stated that the tech sector contributes to 25% of Karnataka's GDP, houses a quarter of the country's digital talent, over 11,000 start-ups, and 30% of the total GCCs.
“In today's highly competitive landscape, knowledge-led businesses will locate where talent is, as attracting skilled workers is crucial for success. Globally, there is a huge shortage of skilled talent and Karnataka, despite its large pool, is no exception,” NASSCOM said.
NASSCOM emphasized that for states to become key technology hubs, a dual strategy is essential: attracting the best talent worldwide and investing in building a strong local talent pool through formal and vocational channels.
“It is deeply disturbing to see this kind of bill which will not only hamper the growth of the industry, impact jobs, and the global brand of the state. NASSCOM members are seriously concerned about the provisions of this bill and urge the state government to withdraw it,” the statement concluded.
