Over the past decade, India’s IT sector has experienced significant growth, largely driven by outsourcing and increased demand from global companies. This surge in demand has led to an expansion of the workforce, with more professionals entering the IT industry. However, demand has outpaced supply in Tier 1 markets such Bangalore, Hyderabad and Pune, resulting in escalating operating costs, with wages increasing on average by 10% per year over the last five years.
Businesses are now looking to emerging tech hubs such as Coimbatore, Ahmedabad, Jaipur and Thiruvananthapuram, attracted by their growing talent pools, lower costs and rapid government investment. With as many as 25 emerging IT hubs in India to choose from, AGS has leveraged Lightcast’s global data and examined 10 Tier 2 locations that could serve as new sourcing grounds for highly skilled IT talent.
Coimbatore distinguishes itself as a mature and growing market with a substantial IT talent supply of 40,000, twice the average of other Tier 2 cities. With three workers for every job posting, compared with one worker per posting in Tier 1 cities, and well-established infrastructure, Coimbatore presents itself as an appealing market. Sustained strong demand also indicates this is a sought-after location for sourcing IT talent.
