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Telangana’s Tier-2 IT Revolution: Warangal Leads the Charge

Warangal, Telangana – October 24, 2025 – Telangana is aggressively expanding its IT footprint beyond Hyderabad, with Warangal emerging as a key hub in the state’s Tier-2 IT revolution. Driven by government incentives, strategic infrastructure investments, and a focus on local talent development, the Telangana government’s policy shift is creating opportunities closer to home for young professionals and fostering a more balanced distribution of economic growth.

The Madikonda IT SEZ, a 45-acre hub near Warangal, is at the heart of this transformation. It houses firms like Cyient, Quadrant Resource, and Genpact, employing nearly 1,000 people. Cyient, a multinational tech company, has significantly expanded its presence in Warangal, employing over 200 associates with plans for further growth.

The state government is actively encouraging companies to establish operations in Tier-2 and Tier-3 cities through a range of incentives, including rent-free facilities, concessional land rates, and reimbursements on stamp duty. Eight IT towers are already operational across Telangana, hosting numerous companies and professionals.

“Telangana aims to ensure that growth and opportunities reach every corner of the State, not just Hyderabad,” said IT and Industries Minister D. Sridhar Babu.

A recent study by NASSCOM indicates that over 35% of India’s new engineering graduates now come from Tier-2 and Tier-3 cities, and a growing number are choosing to stay in their hometowns for employment. The Telangana Academy for Skill and Knowledge (TASK) is playing a critical role by bridging the gap between academia and industry, offering specialized training in cutting-edge technologies to empower local youth.

While challenges remain, such as underutilization of some IT towers and wage disparities compared to Hyderabad, the initiative is considered transformative by local employees. The shorter commutes, lower living costs, and improved work-life balance are attracting professionals back to their hometowns.

Looking ahead, Telangana is focusing on artificial intelligence (AI) and automation to drive further growth. The government is establishing an AI University and collaborating with global institutions to enhance skills and foster innovation.

To further extend IT reach, a new IT tower is under construction in Adilabad district. By promoting IT in smaller cities, such as Warangal, Vijayawada, Mysuru, Kochi, Coimbatore, Lucknow, and Guwahati the Telangana government is committed to creating a sustainable and inclusive IT ecosystem across the state and developing a self-reliant engine of innovation.

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