IT Firms Infosys, TCS, and Accenture Open Offices in Tier II and Tier III Cities

Major IT businesses are expanding into Tier II and Tier III locations in India after functioning for decades in Tier I cities like Bengaluru, Mumbai, and Delhi. The opening of Infosys' new office in Yelahanka, Karnataka, is a recent illustration of this pattern. Employees were informed of the new arrangement in an email from the human resources department on Monday when the campus officially opened for business.

The business said in an internal email to its staff that the new building will support its mixed work approach. We are happy to announce the opening of our new North Gate facility in north Bengaluru to encourage flexibility further and enable you to work remotely and close to your residences, according to the statement.

Infosys has opened offices in tier II cities

To tap into the talent pool in those areas, Infosys has also opened offices in tier II cities like Visakhapatnam and Coimbatore to quicken the implementation of its hybrid work approach.

To enable staff to work closer to their homes, other IT firms, besides Infosys, are also opening facilities in tier-II and tier-III cities. A few months ago, the IT giant Accenture opened offices in Jaipur and Coimbatore, expanding its access to a larger talent pool and giving employees more freedom to choose where to work. Accenture had previously only previously operated in India's big cities.

The New strategy to draw workers into the workplace

Another Indian IT company, Persistent Systems, has adopted this strategy to attract workers into the workplace. Centres have been established in Nagpur and Goa. In Tier II cities all around India, TCS maintains offices, including Bhubaneswar, Kochi, Thiruvananthapuram, Nagpur, Indore, Varanasi, and Gandhinagar. According to Aditya Narayan Mishra, MD of CIEL HR, IT businesses are creating these arrangements to entice staff members back to the office. 

Many employees have returned to their hometowns after the pandemic's trend of distant employment. Increased attrition results from certain employees' reluctance to return to cities and their openness to other flexible employment opportunities as businesses convert to a hybrid work model, Mishra pointed out.

Major IT vendors have been pressuring staff to work remotely. Tata Consultancy Services (TCS) and Infosys recently emailed their team that they would begin working from offices. Employees at other Indian IT firms like HCL Tech and Wipro have also been encouraged to adopt a mixed working style.

The recent trend of opening offices in tier II and tier III cities

The trend of opening offices in tier II and tier III cities, according to Teamlease HRtech CEO Sumit Sabharwal, is also made possible by better infrastructure and internet penetration.

Sabharwal said that moving to tier 2 and tier 3 cities now makes more commercial sense than it did a few decades ago. Everything has advanced significantly, including internet usage, education, infrastructure, supply chains, transportation, and logistics. Businesses are more interested in Tier II and Tier III cities as they can scale up more quickly.

In addition to having easy access to infrastructure, tier two and tier three cities are more appealing to large IT businesses due to cheaper real estate and maintenance expenses, according to CIEL's Mishra.

"Opening offices in tier two and tier three cities can boost socioeconomic development and decrease attrition while bringing down real estate expenses. Additionally, it gives businesses cheaper access to various talents, Mishra emphasised.