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Accenture plans to add 12,000 jobs at its new campus in India’s Andhra Pradesh

Three sources with knowledge of the matter said that Accenture proposed to set up a campus in Andhra Pradesh in southern India. The goal is to add 12,000 new jobs to the company's workforce in India.

This move is similar to deals made by Tata Consultancy Services (IT firm) and Cognizant (IT company), which leverage a new policy of the state offering to lease land to large companies willing to create employment at 0.99 Rupees ($0.0112) an acre.

Accenture has more than 300,00 of its 790 000 employees in India.

Sources said Accenture had requested land in Visakhapatnam, on similar terms. The matter is confidential, so they asked to remain anonymous.

Accenture has not responded to the request for comment.

A state official stated that the Andhra Pradesh Government is eager to bring Accenture in. While approvals could take some time, it is expected that the proposal will be approved.

The official, who spoke on condition of anonymity, said: "This is not a unreasonable request by Accenture and the proposal will be approved."

The amount Accenture plans to invest in the campus is unclear.

TCS and Cognizant have secured land leases to build campuses in Visakhapatnam that could create around 20,000 new jobs. Cognizant plans to invest $183 millions, while TCS will spend slightly more than $154 million on its facility.

In order to take advantage of lower costs for land, rent, and wages in smaller Indian cities, technology firms are expanding. After the pandemic, it is easier for many to hire locals in Tier-2 cities. This reverses the trend of workers migrating from smaller tech hubs to larger ones.

This comes in the wake of President Donald Trump's new policy, which requires a $100,000 fee to be paid for all new H-1B visas. These visas are widely used by technology firms to hire foreign talent. This move will hurt the IT industry, which was by far the biggest beneficiary of H-1B Visas last year.

Customers could also delay or re-negotiate their contracts, as the U.S. is debating a proposed tax of 25% on American companies using outsourcing services. $1 = 88.7500 Indian Rupees (Reporting and editing by Dhanya Skarichan and Sonia Cheema; Urvi Dugar, Abinaya Vjayaraghavan and Sonia Cheema; Urvi and Abinaya wrote the article).

(source: Reuters)