While other sectors are booming and impacting the state’s economic growth, Odisha’s IT industry isn’t far behind. This is due to its government’s dynamic and proactive policies. Using its attractive incentives and policies, the Odisha government has constantly been pursuing the new age industry development within the state.
Today, Odisha has become one of the country’s top destinations for the IT sector since it has all that’s needed for a great start. The IT industry is becoming increasingly crucial for Odisha as it seeks to create a conducive environment to attract investment into the state via different initiatives. It’s also ushering in the state’s balanced socio-economic growth.
Overview of the IT industry in Odisha
Odisha’s IT sector is getting national attention, serving industries like blockchain, artificial intelligence, cloud computing, the internet of things, digital process automation, drones and robotics, augmented or virtual reality, and security. Today, Odisha is among the key Indian states contributing to the economy via IT, with over 1000 successful startups, with about 23% being IT based.
Additionally, the state’s software exports have reached around Rs 7500 crore per year. Besides this, the BPO, ITES, electronics, and KPO sectors are expanding thanks to government-provided incentives.
Naveen Patnaik, Odisha’s chief minister, recently launched IBM’s CIC (Client Innovation Center) at O-Hub, in Bhubaneswar’s Chandaka Industrial Estate, further strengthening the state’s IT ecosystem. This will position Odisha as India’s technology resource hub.
PWC opened an office in Odisha to tap into the state and neighboring regions’ multi-skilled talent pool. This expansion agrees with the company’s commitment to generating 10,000 more jobs in the country.
The recently held ‘Make in Odisha’ conclave highlighted Odisha’s revolution as the ultimate Information Technology hub. Over 15 IT majors agreed to open their businesses soon.
Factors driving the growth of the IT industry in Odisha
Government initiatives
As part of its most important 5T Initiatives (the pillar of the state’s transformative agenda), the Odisha government has raised spending on IT and digital initiatives.
The Odisha Electronics Policy 2021 offers the best investment incentives for Electronics and Electronics System Design and Manufacturing sectors, promoting Odisha as a hub for the electronics and electronics manufacturing industries.
On the federal level, the government has made easier restrictions on online gaming. This has opened up means for gaming startups to provide payment solutions for gaming companies in Odisha. Some companies are facilitating some of the fastest withdrawal casino sites directly or indirectly. Mobile solutions and e-wallets by Jio Money, PhonePe, and other local fintech giants serve a significant part of the market. However, leading foreigners such as Google Pay and neo-banking competitors, including Skrill and Astropay, are widely accepted.
Availability of skilled workforce
Odisha’s skilled workforce has also contributed to the growth and development of the state’s IT industry, which has partly created a favorable ecosystem IT companies are looking to leverage.
Supportive ecosystem
The ease of conducting business and structured policy initiatives have turned Odisha into a formidable modern IT companies destination in India’s Eastern part. While all key IT companies have been in the state longer, international institutions like IBM have entered the state due to its innovative policy initiatives.
The economic impact of the IT industry in Odisha
Odisha’s IT industry has offered employment to many citizens, with 1000 people expected to work at the Fortune Towers center and 500 at IBM’s CIC center. And with 15 IT having given consent to start their facilities soon, there’s a promise for more jobs.
Odisha’s GDP saw an 8.8% growth rate in 2021-2022, with the service sector growing at a 7.95 rate.
Thanks to government policies, a skilled workforce, and a favorable ecosystem, Odisha’s IT market will experience significant growth.
Challenges and opportunities for tech companies in Odisha
Challenges
Abandonment of research and development, a lot of attention on low-end IT services, neglect of electronic hardware manufacturing, saturation in select states and neglect of the rest, and overdependence on the export market are the main challenges the IT industry is likely to face.
Opportunities
The entry of international industries like IBM in Odisha’s IT sector and continued government support and initiatives will create many growth opportunities for industry, significantly impacting the economy.
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