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IT hiring smaller cities surge: 50% H1 boost in India

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IT hiring smaller cities
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IT hiring smaller cities is reshaping India’s technology industry in ways that few predicted. Once limited to metro powerhouses like Bengaluru and Hyderabad, India’s IT sector is now witnessing massive momentum in Tier-II and Tier-III cities. Data from The Economic Times and Times of India confirms that IT hiring smaller cities jumped by 50% in the first half of 2025 compared to last year.

This surge in IT hiring smaller cities reflects a structural shift powered by digital infrastructure, government incentives, and hybrid work cultures.

Why is IT hiring smaller cities surging in 2025?

Below are the top reasons IT hiring smaller cities is becoming a defining trend:

  • Digital Infrastructure Upgrades: Rapid rollout of 5G networks, reliable broadband, and cloud services has made smaller cities competitive with metros.

  • Remote and Hybrid Work: As companies embrace flexible models, IT hiring smaller cities helps tap into skilled professionals who prefer staying closer to home.

IT hiring smaller cities

  • Cost Optimization: Salaries, real estate, and operational costs are up to 30% lower, allowing sustainable IT hiring smaller cities growth.

  • Government Support: Special incentives and dedicated IT parks are encouraging firms to invest in non-metro regions.

According to Neeti Sharma of TeamLease Digital, “This is not just a cost play but a deeper transformation driven by infrastructure and policy.” Source

Top cities leading IT hiring smaller cities boom

The data shows certain Tier-II and Tier-III hubs are outperforming even large metros:

  • Mysuru: Leads in generative AI hiring, with 32% share among smaller cities.

  • Coimbatore, Nagpur, Nashik: Each reported 20–25% growth in IT hiring smaller cities trends.

  • Indore & Jaipur: Saw increases between 30–40% in IT hiring smaller cities.

  • Udaipur, Vizag, Bhubaneswar: Rapidly growing as IT and KPO destinations.

This boom in IT hiring smaller cities is spreading economic activity, reducing migration pressure on urban centers.

Specifications & Features of IT hiring smaller cities

Here are the main specifications and features driving this evolution:

  • 50% YoY growth in IT hiring smaller cities in H1 2025

  • Leading roles hired:

    • Full-stack developers

    • Cloud and DevOps specialists

    • AI and ML engineers

    • Cybersecurity analysts

    • QA automation testers

  • Key operational benefits:

    • 20–30% lower costs compared to metro locations

    • Easier access to fresh graduates and regional talent

  • Primary drivers:

    • Hybrid work acceptance

    • Affordable infrastructure

    • State-level incentives

  • Long-term impacts:

    • Better work-life balance for employees

    • New economic hubs beyond traditional metros

    • Sustainable, diversified hiring

For a detailed reference, you can read the full analysis on The Economic Times and Times of India.

How IT hiring smaller cities benefits everyone

IT hiring smaller cities provides big advantages for professionals, employers, and local economies:

  • For job seekers: Access to high-quality tech roles without relocating to crowded cities.

  • For companies: Easier talent acquisition and better retention in smaller cities.

  • For cities: Stronger local economies, improved infrastructure, and new investments.

Experts predict that IT hiring smaller cities will keep growing at double-digit rates over the next few years, transforming India into a multi-hub technology powerhouse.

In conclusion, IT hiring smaller cities isn’t a passing trend but a lasting evolution. As hybrid work becomes the norm and companies search for cost-effective, scalable solutions, smaller cities will continue to power India’s next wave of technology growth.

Looking ahead, IT hiring smaller cities is likely to spark new regional opportunities that go far beyond job creation. These emerging tech hubs will help build stronger local economies, attract international investments, and inspire new generations of professionals to stay closer to their roots. For policymakers, the surge represents a chance to strengthen digital infrastructure, expand training programs, and design incentives that ensure this momentum is sustainable.

Ultimately, the rise of IT hiring smaller cities highlights India’s resilience and adaptability in the face of global change—and signals a future where technology talent thrives everywhere, not just in the big metros.