BENGALURU (Reuters) -Software services firm Cognizant Technology Solutions will invest 15.82 billion rupees ($182.76 million) to build a new campus in south Indian city of Vishakapatanam that will create about 8,000 jobs, the state government announced on Friday.

Commercial operations will begin in March 2029, an Andhra Pradesh government press release said.

Cognizant did not immediately respond to a request for comment.

The announcement comes just months after India’s top IT firm, Tata Consultancy Services, unveiled plans for 13.70 billion rupee campus in the same city, and is expected generate 12,000 jobs.

The move aligns with Cognizant’s strategy to optimise real estate costs. In May 2023, Chief Executive Ravi Kumar S said the company would relinquish 11 million square feet of office space globally, mainly in India’s largest cities, while investing in tier-2 Indian cities.

Globally, IT companies, including those in India’s $283 billion sector, are taking cost-cutting measures such as monetising real estate assets and delaying wage increases amid demand uncertainty.

Last month, the Teaneck, New Jersey-based company raised its annual revenue forecast and beat first-quarter results driven by increased demand for AI-powered IT services.

Cognizant expects 2025 annual revenue between $20.5 billion and $21.0 billion, compared to previous outlook of the midpoint of $20.30 billion to $20.80 billion.

($1 = 86.5625 Indian rupees)

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Tasim Zahid)