TLDR: India’s IT sector is witnessing a significant shift in hiring trends, with Tier-2 and Tier-3 cities experiencing a remarkable surge of over 50% in IT job growth during the first half of 2025. This outperforms major metropolitan tech hubs, which saw 12-15% growth. The shift is driven by enhanced digital infrastructure, government support, the prevalence of hybrid work models, and substantial operational cost savings for companies. Cities like Coimbatore, Nagpur, Indore, and Jaipur are emerging as new talent epicenters, attracting diverse IT roles and fostering a more decentralized talent landscape.
India’s information technology (IT) sector is undergoing a profound transformation in its hiring landscape, with smaller, non-metro cities emerging as the new engines of growth. During the first half of 2025, Tier-2 and Tier-3 cities collectively recorded an impressive surge of over 50% in IT hiring, significantly outpacing the 12-15% growth observed in traditional Tier-1 tech hubs like Bengaluru and the National Capital Region.
This remarkable shift, highlighted by data from staffing firms such as Teamlease and CIEL HR, indicates a fundamental rebalancing of India’s talent geography. Neeti Sharma, Chief Executive of Teamlease Digital, noted, ‘In 2025, India’s IT services sector is witnessing a significant hiring shift toward tier-II and tier-III cities.’ While this momentum has been building since the pandemic, the growth witnessed in the past year has been on an entirely different scale.
Several factors are contributing to this accelerated decentralization of IT talent. Improved digital infrastructure, proactive government initiatives, and the widespread adoption of hybrid work models have made smaller cities increasingly attractive. Companies are also realizing substantial operational cost savings, estimated to be around 30% compared to primary cities, by establishing or expanding their presence in these regions. However, as Sharma points out, the shift is no longer solely about cost reduction; it reflects a strategic move towards a more engaged and eager-to-learn talent pool.
Specific cities are leading this charge. Coimbatore, Nagpur, and Nashik are experiencing year-on-year growth rates of 20-25% in IT hiring, while Indore and Jaipur are recording even higher expansion at 30-40%. Udaipur and Vizag have also shown strong performance. Mysuru has particularly distinguished itself as a frontrunner in emerging technologies, accounting for 32% of hiring in areas like generative AI among Tier-2 cities, according to CIEL HR. Jaipur continues to dominate across both voice and non-voice roles, and Coimbatore demonstrates balanced demand across all tech job families.
In-demand roles driving this growth include full-stack developers, AI/machine learning engineers, cybersecurity analysts, cloud and DevOps engineers, business intelligence and data analysts, and quality assurance and automation testers. The surge is not limited to IT; supporting functions in Tier-2 and Tier-3 cities also saw a robust 24-31% growth, compared to 8-15% in Tier-1 cities.
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Pranay Kale, Chief Revenue & Growth Officer (CRGO) of foundit, emphasized the broader implications: ‘The hiring momentum shift towards Tier-2 cities, especially in IT and Entry level roles, is notable. Job seekers now have diverse opportunities closer to home, reflecting India’s rich and varied talent landscape.’ This trend is also fostering a new wave of entrepreneurship, with 51% of DPIIT-recognized startups now emerging from Tier-2 and Tier-3 cities, transforming them into vital innovation hubs. This sustained double-digit hiring growth in high-demand areas like AI, cloud, and cybersecurity positions these smaller cities as crucial contributors to India’s future economic narrative.
