So MNCs and BPOs have started looking beyond the metros for expanding and are planning to set up their facilities in smaller cities of India as the metros are facing problems like high attrition and crunch of talent.



The talent base in metros is saturating whereas there is a large pool of skilled people in smaller cities but additional training efforts will be needed. Still, we are looking forward to change stations, says Ashok Tyagi, senior vice-president (Enabling Services), Genpact.

The benefit for offshoring companies to move to tier-II and tier-III cities is that employees in these cities are less likely to quit or switch jobs as there are not much good job opportunities knocking their door in the same city.

That means, IT professionals in these locations remain within a particular company for a longer period of time. This ensures low attrition rate for the companies. There are also advantages of low investment in terms of infrastructure and real costs. Another advantage is that, the real estate comes in cheap for the companies. The firms can save almost 20-40 per cent on land acquisition or renting commercial office spaces in the smaller towns.

According to a survey, cities like Kochi, Chandigarh, Pune, Mysore, Goa, Indore, Bhopal are likely to emerge as hot destinations for BPO operations.

So, the IT companies as well as the BPOs can surely see a good rise by expanding their business in these cities.