Cognizant to invest ₹1,582 cr in Visakhapatnam, create 8k jobs

IT major Cognizant Technology Solutions will invest ₹15,820 crore (approximately $183 million) to establish a new campus in Visakhapatnam, Andhra Pradesh.

According to a statement issued by the state government on Friday, the development is expected to generate around 8,000 jobs. The new facility is scheduled to become operational by March 2029.

Notably, the Andhra Pradesh government is allotting land to IT giants at a nominal rate to woo investments in the state. The government is reportedly aiming to make Vizag the IT Hub of Andhra Pradesh. The land was offered to Cognizant for just 99 paisa for setting up their base.

The announcement follows a similar move by Tata Consultancy Services, which recently revealed plans to invest ₹13,700 crore in a campus in the same city, with an anticipated 12,000 jobs to be created. The State government also reportedly allotted 21.16 acres to TCS in Visakhapatnam for its campus at a nominal lease price of 99 paise.

Cognizant’s expansion in Visakhapatnam also reflects its broader strategy to cut real estate costs by focusing on tier-2 cities. In May last year, Chief Executive Ravi Kumar S said the company intended to vacate 11 million square feet of office space globally, mostly in India’s major urban centres, and instead expand into smaller cities.

Global IT companies are adopting various cost-saving approaches, including selling property assets and postponing salary hikes, due to uncertain demand.