The software industry in Andhra Pradesh is conveniently spread out to different cities, namely Visakhapatnam, Tirupati and capital city of Amaravati, and not clustered just in the capital, leading to so many social, economic and political problems. Most software companies in Andhra Pradesh are out of state or foreign companies which are also called multinational corporations. Domestic software industry in Andhra Pradesh seems to be at its beginning stages.

In May 2021 the Government of Andhra Pradesh released the Andhra Pradesh IT Electronics Policy 2021–24, aimed at creating a world-class electronics manufacturing infrastructure. In a release, Principal Secretary (Information Technology, Electronics and Communications) said that the policy is envisioned to transform Andhra Pradesh into a hub of IT and Electronics.

Software companies with facilities in Andhra Pradesh, as well as country of headquarters:

• Cyient - India
• HSBC-GLT - United Kingdom
• IBM - United States
• Tech Mahindra - India
• Wipro Technologies - India
• Pulsus Group - United Kingdom
• Conduent - United States
• WNS Global Services - United States
• HCL Technologies - India

The Government of AP plans to convert Vizag city into an IT hub made many new investments from multinational companies. Many firms such as Google, Tata Consultancy Services, Microsoft, Uber, Pulsus Group, Adani Data Center, Capgemini, Accenture etc. have accepted to set their office locations in Vizag