Business: Companies making aggressive recruitments in small towns to cut costs
New Delhi| To reduce costs and easily reach talent, big companies of the country are now opening offices in small cities like Lucknow and Jodhpur and are also recruiting aggressively. There are three big reasons for companies to turn to small cities. First…These cities cost less. Second…Operating costs decrease. Third…Good employees are available at low salaries.
According to the information, Vedanta is looking for talent in digital transformation, engineering and other important fields. RPG Group is focusing on emerging sectors like manufacturing, renewable energy along with sales. According to a senior Vedanta official, due to business restructuring this year, the company is considering hiring in good numbers across India. It prominently includes tier-2 and tier-3 cities.
Vedanta has recruited people on a large scale in Bhubaneswar, Ranchi, Jharsuguda, Raipur, Barmer and some north-eastern states.
Vamsi Karavadi, partner at Deloy India, says recruitment in tier-2 and tier-3 cities reduces companies’ operating expenses by 10-20 per cent. It is dominated by the rental of offices, low wages and low attrition rates.
T Nagarajan, vice president, IBM India and South Asia, said, instead of bringing talent from small towns and keeping it in metros, we are taking our offices to them.
The cities where IBM has expanded are mainly Gandhinagar, Bhubaneswar, Kochi, Mysore and Coimbatore. IBM India has been adopting an aggressive strategy to develop talent for three years, which will continue this year also.
The company is increasing job opportunities for skilled professionals while harnessing talent from local educational institutions in small towns.
IBM is focusing on roles in Artificial Intelligence, Cyber Security, Cloud Platforms, Product Design, and Business Process Services.
Tech companies also moved to small towns
Tech companies are also aggressively recruiting from tier-2 and tier-3 cities. Mainly targeting software engineering, infrastructure and customer support roles. Current estimates suggest that 15-20 per cent of the technical workforce already comes from cities like Coimbatore, Thiruvananthapuram, Bhubaneswar, Jaipur, Nagpur and Indore, Karawadi said.
Ritu Bhatia, Global Hiring Leader, Tech Company Genpect, said, we believe that Jodhpur, Lucknow, Warangal and Madurai are a prime destination for affluent groups of skilled and capable workforce. In such a situation, the focus of companies is on these cities.
