With severe electricity shortage impacting the sector in Andhra Pradesh, Suman Reddy underlined the need for steps to improve the situation and also for widening the roads at key junctions in Hyderabad and for easier government interfaces.

According to the IT and ITeS (information technology-enabled services) Industry Association of Andhra Pradesh, the sector in Andhra Pradesh achieved a turnover of 53,246 crore in 2012, crossing the 50,000-crore mark for the first time.

Andhra Pradesh is the fourth-largest IT exporter in the country, accounting for 12 percent of India's total IT exports.

Ramesh Loganathan, vice-president, Progress Software India, hoped that during 2013 the industry would continue to improve its efficiencies and move up the value chain.

"Initiatives triggered by the start of recession in 2009 are now continuing to be relevant with pricing pressures and reducing cost arbitrage with wage increases and reduced growth.

"The modest 11 per cent growth projected by Nasscom notwithstanding, the efforts to improve profitability and to increase high value services and IP creation are actively underway, especially in Hyderabad," he said.

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Pointing out that while Hyderabad is way better than other cities like Bangalore, with a better planned growth and good core infrastructure, he called for improving the public transport.

V Laxmikanth, managing director, Broadridge Financial Solutions India, believes that India's growth story is here to stay. "From the IT industry perspective, I see that it can be a great leveler and transform lives. The key is to make growth inclusive," he said.

He said while the "raw" talent base is good in India, the challenge is that the education system and social framework do not encourage independent thinking and creativity.