FILE PHOTO: Figurines with computers and smartphones are seen in front of Accenture logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
HYDERABAD/BENGALURU (Reuters) -Tech consultancy Accenture has proposed setting up a new campus in the southern Indian state of Andhra Pradesh, aiming to eventually add about 12,000 jobs to its workforce in India, three sources familiar with the matter told Reuters.
The move follows similar deals by IT firms Tata Consultancy Services and Cognizant, which are leveraging a new state policy offering leased land at 0.99 rupees ($0.0112) per acre to large firms willing to generate employment.
India is already Accenture's largest employee base globally, with more than 300,000 of its 790,000 employees based in the country.
As part of the proposal being reviewed by the state government, Accenture has requested land of about 10 acres in the port city of Visakhapatnam on similar terms, the sources said, requesting anonymity as the matter is private.
Accenture did not respond to Reuters' request for comment.
The Andhra Pradesh government is eager to bring in Accenture, a state official said, adding that while approvals may take time, the proposal is expected to be cleared.
"It is not an unreasonable ask by Accenture, and the proposal will go through," the official said on condition of anonymity.
It is not immediately clear how much Accenture intends to invest in setting up the campus.
TCS and Cognizant secured land leases under the policy to build campuses that could generate around 20,000 jobs in Visakhapatnam. Cognizant will invest $183 million, while TCS has earmarked slightly over $154 million for its facility.
Technology firms have been increasingly expanding to smaller Indian cities to tap lower land, rent and wage costs. Post-pandemic, many find it easier to hire locally in Tier-2 cities, reversing the earlier trend of workers migrating to major tech hubs.
This move comes amid U.S. President Donald Trump's policy change requiring a $100,000 fee for new H-1B visas, widely used by tech firms to hire skilled foreign talent. The move is expected to hurt the IT sector, by far the largest beneficiary of H-1B visas last year.
The sector also faces uncertainty as customers could delay or re-negotiate contracts as the U.S. debates a proposed 25% tax on American firms using outsourcing services.
($1 = 88.7500 Indian rupees)
(Reporting by Rishika Sadam in Hyderabad and Haripriya Suresh in Bengaluru; Writing by Urvi Dugar and Abinaya Vijayaraghavan; Editing by Dhanya Skariachan and Sonia Cheema)
