Tech companies plug into India's smaller cities for talent

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Calling Chard: asparagus and leek risotto with chicken | SaltWireMADURAI/BENGALURU - Indian engineer B. Ramachandran now prefers living in the smaller cities than the major tech hubs of Bengaluru and Chennai.

"The HR and I used to drive down to Bengaluru and Chennai to interview experienced talent and convince them to move to Madurai," said Selvaganesh M.P, founder of IT firm SMI that was bought by mid-cap IT company Happiest Minds in 2023."This is no longer needed as the equation has changed after COVID-19."U.S.

Employee salaries are 25%-30% lower and real estate rentals are around 50% cheaper than in established tech hubs, according to a report by Deloitte and industry body Nasscom.Cognizant is trying to exit a major Chennai facility as part of its plan to cut real estate costs by $100 million by 2025, even as it opened an office in Bhubaneswar, in eastern Odisha state.

However, Wipro said it was making continuous investments in tier 2 and tier 3 cities and had set up offices in multiple emerging cities such as Ahmedabad, Bhubaneshwar and Guwahati to tap into talent and scale operations.

 

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