India's Tech Sector Spreading To 26 Cities From 7 Major Hubs Says Report

CIOTechOutlook Team | Thursday, 31 August 2023, 06:17 IST

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The technology sector in India is decentralizing from seven major centers to 26 places including Chandigarh, Nagpur, and Kanpur since 11–15% of the country's IT talent is located there based on a report. According to a survey by Deloitte and Nasscom, the majority of India's 5.4 million IT workers are concentrated in the seven major cities of Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, and Pune.
 
Cities like Chandigarh, Kanpur, Ahmedabad, Mangaluru, and Nagpur will produce the next generation of technological clusters thanks to advantages including lower operating costs, easier access to talent pools, and lower attrition rates, in addition to state government support in terms of infrastructure and regulations. Businesses like Infosys, Wipro, HCLTech, and WNS operate in one or more of the cities that make up these new centers.
 
The research emphasizes that as of 2022, there would be over 7,000 start-ups operating from developing hubs and in industries ranging from BPM services to DeepTech. These new businesses grew by 50% between 2014 and 2018 and are projected to increase by 2.2 by 2025. Notably, start-ups from tier 2 cities in India received 13% of the investment in 2022, demonstrating that investors are increasingly at ease searching outside of metropolitan areas for potential unicorns.
 
Deloitte India Partner Sumeet Salwan said, "While big cities were the focus in the past, the post-pandemic era witnesses a remarkable decentralisation of work across the nation."
 
Sukanya Roy, Head of GCC and BPM at Nasscom, noted that as businesses around the world constantly review their methods of operation in an effort to maximize results, prices, and talent, the chance and potential for developing alternative tech centers are now turning out to be crucial.
 
"India is expected to have a skilled talent surplus by 2030. These hubs offer companies a compelling blend of advantages: access to a fresh, skilled talent pool, cost-effective operations, and robust infrastructure," Roy said.
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