Tech companies plug into India's smaller cities for talent

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Indian engineer B. Ramachandran now prefers living in the smaller cities than the major tech hubs of Bengaluru and Chennai.

Item 1 of 4 Employees of HCLTech have their meals at the roadside eateries outside their office on the outskirts of Lucknow, India, March 20, 2024. REUTERS/Pawan KumarEmployees of HCLTech have their meals at the roadside eateries outside their office on the outskirts of Lucknow, India, March 20, 2024. REUTERS/Pawan KumarMADURAI/BENGALURU, April 25 -

Some are already finding it easier to hire staff in tier 2 cities, in contrast to before the pandemic when workers largely went from smaller cities into the country's major IT hubs for jobs. 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.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.is running an initiative called "Nxt.

Cognizant did not comment, citing a silent period ahead of its quarterly results. Tata Consultancy and Infosys did not respond to emails seeking comment. The trend by firms to decentralise has hurt demand for office space. The tech sector's share in India's top seven markets fell to 20.9% in 2023, its lowest in more than a decade, JLL data showed.

 

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