Tech firms boost hiring in smaller Indian cities

BENGALURU, INDIA — Several technology companies are significantly stepping up their hiring plans in India’s tier-2 and tier-3 cities in 2024.
Notable cities like Thiruvananthapuram, Kochi, Coimbatore, Jaipur, Mohali, Vadodara, Chandigarh, and Indore contribute approximately 12-15% of the country’s tech talent, according to talent management firm Randstad India.
Zoho Corp, which offers a suite of business software products like customer relationship management (CRM) and accounting, plans to add over 1,000 employees in 2024 focused on rural and tier-2 regions.
“Opening offices across smaller cities and rural areas takes us closer to a vast talent pool that is still untapped and awaiting an opportunity,” said Praval Singh, Vice President, Zoho Corp.
IBM, which has major India operations, is also pursuing an aggressive talent growth strategy in emerging cities beyond metros.
“We will be extending opportunities to not just skilled professionals in those locations but also tap into the talent pool from leading local academic institutions,” said Thirukkumaran Nagarajan, VP and Head of HR at IBM India & South Asia.
Kyndryl India’s Chief People Officer, Rajita Singh, echoes this sentiment adding, “location is no longer a barrier to talent… Tier-2 and Tier-3 cities are home to excellent universities and colleges churning out skilled graduates in STEM fields.”
Additionally, Happiest Minds Technologies, a mid-sized IT services firm, is also looking to hire extensively in digital skills.
Rajesh Chandran Sogasu, Head of Talent Acquisition and L&D, mentions hiring plans from diverse Indian locations like Noida, Pune, Bhubaneswar, Madurai, and Coimbatore.
“These locations also help them to save significant time by reducing travel and the cost of living.”
The increased focus on hiring from non-metro regions is driven by abundant tech talent availability, lower cost of operations, and remote working trends. Companies are also launching local skilling initiatives to train students and make them industry-ready.
The Reserve Bank of India has classified cities into six distinct tiers: Tier I, II, III, IV, V, VI. It is ranked according to population, economic opportunities, cost of living, infrastructure, quality of life, among others.