Work from home culture spurred IT companies to enter Tier 2, Tier 3 cities

After decades of operating from India’s tier one cities like Bengaluru, Mumbai and Delhi, major IT companies are now starting to enter tier two and tier three cities of the country. A recent example of this trend is the new Infosys office in Yelahanka, Karnataka. The campus resumed operations on Monday, and employees were informed of the new arrangement in an email from the human resources department.

In an internal communication addressed to employees, the company said that the new facility will aid in the company’s hybrid work model. The message read, “We are excited to announce the launch of our new North Gate facility in North Bengaluru to promote flexibility and encourage you to work in hybrid mode and closer to your homes.”

As part of efforts to accelerate the implementation of its hybrid working strategy, Infosys has also set up offices in Tier 2 cities such as Visakhapatnam and Coimbatore, with an aim to leverage the talent pool present in those regions.

Moreover, not just Infosys, other IT companies are also opening facilities in tier-2 and tier-3 cities to help employees work closer to their homes. IT major Accenture, which has traditionally operated in India’s metros till now, set up offices in Jaipur and Coimbatore a few months ago, enabling access to a wider talent pool and giving employees more flexibility in choosing their work location. to be done.

IT company IBM has started opening centers in Tier 2 and Tier 3 cities, India-South Asia MD Sandeep Patel told Business Today in an interview earlier this year.

He said, “I like to call them emerging regions and not Tier 2/ Tier 3 cities. They have the advantage in the sense that we can access the local talent pool, we can also set up training centers for the talent there and then. Can.” Incorporate them into the larger organization.”

Another Indian IT company, Persistent Systems, has also adopted this model to attract employees to the office. It has opened centers in Goa and Nagpur. TCS has offices in Tier 2 cities across India, such as Bhubaneswar, Kochi, Thiruvananthapuram, Nagpur, Indore, Varanasi, Gandhinagar, etc.

Aditya Narayan Mishra, MD, CIEL HR, told Business Today that IT companies are making such arrangements to bring employees back to office.

“Following the trend of remote work during the pandemic, many employees have shifted to their hometowns. As organizations shift to hybrid work models, some employees are hesitant to move back to cities and others are open to opportunities that offer flexibility, resulting in increased attrition,” Mishra highlighted .

Major IT companies are motivating employees to work from offices. Recently, both Tata Consultancy Services (TCS) and Infosys have sent intimation via email to employees to resume work from offices. Other Indian IT companies like HCL Tech and Wipro are also moving employees towards hybrid working model.

Sumit Sabharwal, CEO, TeamLease HRTech, said that the new trend of setting up offices in Tier 2, 3 cities is also facilitated by better internet access and infrastructure.

Sabharwal highlighted, “It makes better business sense to move to Tier 2 and Tier 3 cities than it did a few decades ago. Internet access, education, infrastructure, supply chain, transportation, logistics, everything has improved exponentially. Tier 2 and Tier 3 cities are now offering greater scalability to businesses, resulting in increased interest from businesses.

Besides access to infrastructure, CIEL’s Mishra says that tier two and tier three cities also have lower real estate and maintenance costs, which makes them more attractive to major IT players.

“Opening up office space in tier two and tier three cities can reduce erosion, bring down real estate costs and lead to overall socio-economic development. This gives companies access to diverse talent at a lower cost,” highlighted Mishra.