65% of Indian employees want to move to Tier 2 or Tier 3 cities
Living costs are rising nationwide due to inflation and white-collar jobs, and people are looking for ways to return to their hometowns.
According to reports from Nasscom and the Boston Consulting Group, 65% of Indian employees want to move to Tier 2 or Tier 3 cities.
Top tech majors such as Infosys, Wipro and TCS have opened offices in Tier 2 and Tier 3 locations such as Guwahati, Bhubaneswar and Jamshedpur.
After a long break, software engineer Jatin Sharma returned to Gurgaon from his hometown of Jaipur. His company brought him back to the office and he must attend at least twice a week. The trip from the house is too far for him, so he returns to the city and has lived there for six months.
“I’ve noticed that my monthly costs have increased by at least 20-30% over the last six months. It was relatively low before Covid. I can’t save anything like I used to.”
Food and fuel inflation has boosted living costs nationwide in the last four months. In addition, urban areas have tighter pockets, and he begins to look for ways and means to get home.
“I would like to return to my hometown if I have the opportunity. My cost over there is quite low,” Sharma added. He is not the only one who thinks so. According to reports from
Surat vs Mumbai, Kochi vs Chennai
Nasscom and Boston Consulting Group, 65% of Indian employees want to move to Tier 2 or Tier 3 cities.
Living costs in Surat are 50% lower than in Mumbai and 35% lower in Jaipur than in the capital. Also, according to a report titled “Shaping the Future of Work in the Indian Technology Industry,” living expenses in Kochi are 30% lower than living expenses in Chennai. With a significant proportion of workers coming from Tier 2 or Tier 3 cities, the migration of office workers to cities is widespread in India.
Most of them returned home during the pandemic and enjoyed the comfort of their home and loved ones, so they hesitated to return to rent and lonely life, while at the same time missing out on the joy of family life. ..
Tech-Cos Revival
As it is said, if Mohammed does not come to the mountain, the mountain will come to Mohammed. To address this trend, top tech majors such as Infosys, Wipro and TCS have opened offices in Tier 2 and Tier 3 locations such as Guwahati, Bhubaneswar and Jamshedpur.
An increase in this expansion has occurred in the last 18 months.”Many employees work in their hometowns. We saw this and confirmed that they had the opportunity to work near where they live. These are not field offices. There are at least 1,000 seats. By the end of the next quarter, all of these offices will be ready, “Krishnamurthy Shankar, Head of Human Resources Development Group at Infosys, told ET.
Infosys has set up new offices in Coimbatore and Vizag to access its talent pool.
Opening an office in Tier 2 or Tier 3 cities is also beneficial to the organization. Companies suffering from increased salary increases can access a broad talent pool with a salary that is at least 20-30% lower. To date, approximately 976 multinational companies have established 1,257 Global In-House Centers (GICs) in India. Of these, only 68 are GICs in Tier 2 locations owned by management consultancy Zinnov. There are other cities to tap across this vast land.
” There are several Tier 2 cities that are most likely to open offices for the company, including Indore, Chandigarh, Warangal, and Kochi. The company will pick two to three cities to open new offices in. According to the Nasscom report. “India’s digital technology talent is growing five times faster than core IT.”
India may now face a major battle for digital talent, but fortunately, India has technical talent compared to major economies such as the United States, the United Kingdom and China, which have the smallest supply gaps. It is in a good position in terms of demand. The body was said by Nasukomu. Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at Nasscom, said: “The growing graduate pool combined with a mature talent ecosystem is helping the country grow its digital talent pool, despite the brain drain of the right talent.”
Talent remains an important asset for Indian IT. In 2010, the country’s technology industry employed more than 5.1 million people, of whom about 1.6 million had digital skills, she said. “India has emerged as an unparalleled destination for human capital, the world’s” digital talent nation, “and India’s IT is the flag bearer,” she added. To sustain this growth trend, the technology industry is pursuing in-house skills development programs and collaboration with EdTech companies to improve their employees’ skills and develop future employees with digital skills.
” The growth of our digital technology talent is five times faster than that of our core IT talent, especially for key digital skills such as cloud computing, artificial intelligence, big data analytics, and the internet of things. Supply has grown at a CAGR of over 20% over the last five years, “Gupta said.
For India to maintain leadership in the digital age, it will not only work on strategies aimed at developing domestic talent but also the best global talent to drive growth and innovation over the next decade. You need to work to attract.
“We are building digital skills in small cities, getting more women into the workforce with hybrid labour standards, redesigning professional education from ITI and polytechnics, encouraging qualifications and government accreditation. We need to strengthen our talent strategy to innovate and explore learning modules through, ”Gupta said. The IT industry’s top priority is to make India the world’s digital hub, said Krishnan Ramanujam, the newly appointed chairman of the IT industry association Nasscom.
The key to that goal is to effectively integrate India’s vast talent base to support India’s $ 220 billion IT industry’s current demand environment over the next decade. Providing skills and employment opportunities to millions of women and people in Tier II and Tier cities will help the sector grow, with a lead of Tata Consultancy Services NSE 3.20% (TCS NSE 3, 20%).
Ramanujam, who manages the business growth segment, said. .., The largest IT service company in India in terms of revenue. “If you’re not careful, this stellar demographic dividend story can turn into a demographic dividend dagger. Nasscom’s top priority is to make India the world’s digital hub, “he added.
The current gap between supply and demand for human resources in India is about 21%. Despite its large numbers, he said, the country is actually in a much better position than any other economy.
The industry will face high demand over the next decade, so work with government initiatives, businesses and educational institutions to help students entering the market develop skills relevant to this era. Is essential.
In addition, with nearly 36% of women in India’s IT industry, Ramanujam said improving women’s participation in the workforce would be a huge boost to fill the talent gap. It’s an unbearable achievement. “
“The revenue potential of the IT-BPM sector (revenue from the sector) within the next three to five years is well within reach given the demand momentum experienced by all NASSCOM member companies.”He added.
Ramanujam has taken over as Chairman of Nasscom, and Rekha M Menon, Chairman and Chief Executive Officer of Accenture, India.
At TCS, he recently took leadership in the company’s growth as part of the company’s new investment strategy, which began on April 1. After spending his childhood in Kulithalai, a small village in the Karur district of Tamil Nadu, he said he had the opportunity to participate in the growth trajectory of India’s IT sector and expects students to do the same. .. In a prestigious city.
” Similarly to how people of my generation have experienced unimaginable levels of prosperity 30-40 years ago, there is a possibility that next two generations will achieve those levels as well at least in our smaller and medium-sized cities. “he said. ..
edited and proofread by nikita sharma
