The Great IT Shift: Why Tier-2 and Tier-3 Cities Are Booming While Metros Slow Down

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New Delhi: The Indian IT job market is undergoing a significant geographical transformation. According to the latest Active Tech Jobs Outlook by talent solutions firm Xpheno, more than 41,000 IT jobs are set to open up in India’s Tier-II and Tier-III cities this September alone.

While the overall IT services job market shows signs of recovery with over 57,000 active open jobs, the nature of hiring is shifting dramatically. Total talent demand has risen to over 1,17,000 for the month, marking a 15% increase compared to last year. However, digging deeper into the data reveals a stark contrast in employment types:

• Full-time jobs have seen a modest 10% growth.
• Internships and part-time roles have surged by a staggering 90%.

The Rise of GCCs and Big Tech Functions

Beyond traditional IT services, other sectors are driving demand:

• Global Capability Centres (GCCs) have recorded a 38% year-on-year increase in job openings, with nearly 13,000 active jobs.
• Tech functions within Big 4/Big 10 firms have seen a 68% increase, totaling 5,000 active jobs.

Metro Hubs See a Dip

The shift away from major metropolitan hubs is evident. Traditional IT powerhouses like Bengaluru and Hyderabad have recorded falls in active jobs by 15% and 8% respectively, year-on-year. Chennai has seen an even sharper decline, with IT jobs falling by nearly 30%.

Conversely, Tier-II and Tier-III cities have emerged as new centers for active IT opportunities, registering a massive 95% increase over the last year.

Work From Office Returns

The mode of work is also changing. While Work From Office jobs have grown by 26%, both full-time remote and hybrid jobs have reduced by 21% and 7% respectively over the past 12 months.

Note: The Active Tech Jobs Outlook Report curates active job openings directly published by employers via career pages, social media, and job boards. It excludes mandates from recruitment agencies.