HYDERABAD: The IT industry in the city has hit the headlines once again, not for its new swanky buildings or top notch companies, but for some of its dubious members -- two start ups that literally startled scores of techies. Prodigy Solutions and Tancoz Software Solutions, the companies in question, shut shop recently and left hundreds of employees in the lurch. Against this backdrop, the industry has some sage advice to aspiring techies -- cash-for-jobs is simply not on the agenda of genuine companies. According to the industry, Hyderabad, which has the largest number of engineering colleges, is a breeding ground for fraudulent companies. L Suresh, president, IT&ITES Industry Association of Andhra Pradesh, says the rise of fraudulent companies is directly proportional to the declining skill set of engineering graduates. “The fundamental problem is the quality of education. If a student is not readily employable, he resorts to short-cuts such as shelling out money for a consultant or to undergo training to gain employment. On the contrary, if they have the right skill set, they can be immediately absorbed as a result of which, there will not be any scope for fraudulent training institutes,” he points out.The government, on its part, believes effective action against erring companies would suffice. “We cannot be policing as the department has its own areas of operations. Besides, there are over 1,000 software companies in the city alone. It’s humanly impossible to do a random check on all these companies. We believe action against these companies (Prodigy and Tancoz) would act as a deterrent for others,” Sanjay Jaju (IAS), Principal Secretary, Department of IT & Communications (IT&C), Government of Andhra Pradesh, opines. While there’s no stipulation that all IT companies in the city should register with the Software Technology Parks of India (STPI), they, however, have to register with the Registrar of Companies (RoC) before commencing operations. Only those firms which deal with software exports register with STPI. Currently, there are over 1,000-odd STPI registered firms in Hyderabad, of which more than 700 are active. Other than this, there are over 300 IT firms registered with RoC and deal in services catering to the domestic market.
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