HYDERABAD: The Government may have been pro-active in providing all facilities to attract IT majors to city but medium and small-sized IT companies are feeling the pinch following the escalation of land prices.

The recent land auctions have adversely affected the growth plans of medium-sized IT companies. While the big IT companies listed among Fortune 500 get all the concessions right from allotment of land, waiver of tax for their units in special economic zone and host of other concessions, the medium sized segment is mostly left to fend for itself.

An NRI who wants to expand operations of the subsidiary IT unit for a major offshore contract says, "We are here to function and not to speculate. We wish the Government allots land to small and medium sized IT companies at a fixed cost. The contribution of smaller companies to the State economy cannot be ignored," he argues.

For instance, an IT major like Wipro, Infosys may employ thousands of people but half a dozen medium units too can generate employment opportunities on par with a big company in a shorter duration, the NRI says.

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