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Several engineers and tech workers leave India’s urban centers and return to their homes in Tier-II and Tier-III cities.
For example, more and more IT workers, especially technicians, are shifting their base from cities like Gurgaon or Bengaluru Tier-II towns and making a beeline for towns like Hisar and Madurai.
All of this started with the pandemic, when the world began to work from home, empowering IT workers to choose their work location. This shift reflects a broader movement in the IT industry, with companies expanding into smaller cities to leverage advantages such as lower costs and access to local talent.
Before the pandemic, most IT jobs were concentrated in major hubs, but remote work has enabled companies to tap into talent pools in tier 2 cities more easily.
HCLTech, for instance, has witnessed significant growth in Madurai, exceeding its target of 5,000 employees by 2025 due to increased demand during the pandemic.
Other major players, like Cognizant and Tata Consultancy Services (TCS), are strategically moving into smaller cities, driven by cost efficiencies, government incentives, and the availability of skilled workers.
This shift is beneficial for both companies and employees. Lower salaries and real estate costs in smaller cities translate to cost savings for companies, while employees enjoy a higher standard of living and reduced commute times. Moreover, state governments are offering incentives to attract jobs to smaller cities, further encouraging this trend.
Tech Mahindra’s “Nxt. Towns” initiative and Wipro’s “Project Lavender” are examples of efforts to recruit talent in tier 2 cities. For instance, Wipro offers enhanced referral bonuses to employees who relocate to offices in towns like Kochi and Visakhapatnam.
While the decentralization of jobs has reduced the demand for office space in major metropolitan areas, it has also stimulated economic growth in smaller cities. Improved lifestyles, increased consumption, and economic development are some of the positive outcomes anticipated from this trend.
As the IT industry continues to evolve, the success of initiatives in tier 2 cities could potentially replicate the multiplier effects seen in tier 1 cities, fostering overall economic growth and prosperity.
