Accenture has proposed establishing a new campus in Visakhapatnam, Andhra Pradesh, with the goal of eventually creating around 12,000 jobs in India, three sources familiar with the matter told Reuters. The proposal comes as the state government offers leased land at a nominal rate of 0.99 rupees ($0.0112) per acre to large firms that commit to generating employment, a strategy previously leveraged by IT giants Tata Consultancy Services (TCS) and Cognizant.
India is already Accenture’s largest workforce base globally, with more than 300,000 of its 790,000 employees located in the country. According to sources, the company has requested approximately 10 acres of land in the port city of Visakhapatnam, and the state government is reportedly supportive of the plan, though approvals are expected to take some time.
“It is not an unreasonable ask by Accenture, and the proposal will go through,” said a state official on condition of anonymity.
The investment amount for the proposed campus has not been disclosed. For comparison, Cognizant and TCS have secured land under similar state policies to build campuses capable of generating roughly 20,000 jobs, with Cognizant planning an investment of $183 million and TCS slightly over $154 million.
Expanding to smaller cities like Visakhapatnam allows technology firms to benefit from lower land, rent, and wage costs. Post-pandemic, many companies are also finding it easier to hire locally in Tier-2 cities, reversing the earlier trend of talent migrating to major tech hubs.
The move comes amid broader challenges for the IT sector, including a new U.S. policy requiring a $100,000 fee for new H-1B visas, widely used by technology companies to hire foreign talent. In addition, uncertainty over a potential 25% tax on U.S. firms outsourcing services could lead to renegotiations or delays in client contracts.
The proposed campus in Visakhapatnam is also expected to strengthen Accenture’s presence in southern India, a region that has seen growing interest from major IT firms in recent years. By expanding operations beyond traditional tech hubs like Bengaluru, Hyderabad, and Pune, companies can tap into a wider pool of local talent while contributing to regional economic growth.