Nasscom-Deloitte report identifies 26 emerging tier-2 tech hubs in India
- In Reports
- 10:59 PM, Aug 31, 2023
- Myind Staff
India’s technology landscape is witnessing a shift in favour of tier 2 and 3 cities as companies look to leverage the burgeoning talent pool and cost benefits available in these locations, as per a report by Deloitte and Nasscom on Wednesday.
“As decentralisation of work gains momentum, many new opportunities open for people in emerging cities. With 60 percent of India’s graduates in engineering, arts, and science, smaller towns are emerging as a wellspring of potential,” the report said.
The report identified 26 cities spread across India that have “the potential to become the epicentre of innovation and growth,” including Ahmedabad, Bhopal, Indore, Kochi, Nagpur, Chandigarh, Kanpur and Lucknow, along with Hubbali, Mangaluru and Mysuru in Karnataka.
Focusing on these cities, the report examines five overarching pillars: talent, infrastructure, risk and regulatory environment, start-up ecosystem, and social and living environment, which are vital for establishing a flourishing technological landscape. According to the report, fueled by rapid infrastructure growth, diverse skills, burgeoning start-ups, and governmental initiatives, these emerging hubs are gearing to achieve tier-1 status. The emerging cities of India are witnessing a surge in digitally skilled workforce, with over 100,000 professionals contributing to their growth.
Currently, over 140 companies have set up global capability centres (GCCs) in these emerging hubs, the biggest of which are Wipro, Infosys, Genpact and HCL Tech, among others. Together, these hubs have created 9,00,000 direct and 3,00,000 indirect jobs, the report stated. About 39 percent of the country’s start-ups (over 7,000) operate in emerging hubs spanning industries from DeepTech to Business Process Management (BPM).
The emerging cities offer a regulatory environment and living standards comparable with tier 1 cities, along with benefits such as lower pollution, lower costs of living, and affordable healthcare and education, it stated.
“While big cities were the focus in the past, the post-pandemic era witnessed a remarkable decentralisation of work across the nation. Today, about 60 percent of India’s overall graduates come from smaller towns and 30 percent of total graduates relocate to tier-I cities seeking employment. These locations that currently account for 10-15 percent tech talent, provide promising growth potential when supported by the government’s commitment to world-class infrastructure,” said Sumeet Salwan, Partner, Deloitte India.
“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. As state governments and local ecosystems invest in skilling and improving ease of doing business, these burgeoning hubs are now essential waypoints in India’s journey to becoming a global technology powerhouse,” said Sukanya Roy, Head GCC and BPM, NASSCOM.
With more than 50 organizations offering hands-on technical training, the Skill India project is an excellent illustration of how the public and private sectors can work together. Out of 242 Special Economic Zones, 83 are located in growing cities, as are 15 of India's 60 software technology parks. “Fueled by a $1.4 trillion investment in infrastructure, our digital transformation story gets an added boost, manifested by the impending rollout of 5G,” it said.
Image source: The Hindu Business Line
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