Besides presenting businesses with an unparalleled market opportunity, tier 2 and 3 cities in India are also rapidly emerging as vibrant talent hubs, a trend evident from the TeamLease Employment Outlook Survey for April-September, FY 2013-14. The survey reveals that employment outlook index has improved to 79 as compared to 75 for the previous half year period.
Notably, while hiring in tier 1 cities is expected to witness an increase by 1 per cent during the current half-yearly period, hiring in tier 2 and 3 cities is expected to see a rise by 4 per cent. Respondents have also pointed out that the BPOs emerging in places such as Hosur, Kochi, Udupi, Falda and Chindwara are emerging as potential hubs for cost-effective talent. In particular, this is positive news for mid-level organisations that are looking to ramp up on their hiring. HR managers assert that employees from these cities have a very positive and hands-on approach, are willing to learn and also exhibit strong entrepreneurial skills. Moreover, employment outlook for these cities is expected to improve in line with the general trends in the Indian economy. The opening up of FDI in retail, for instance, will provide a boost to employment in non-metro cities. Similarly, sectors like real estate, BFSI, healthcare services, IT, consumer durables, automotive, FMCG and education are also looking to tap tier 2 and 3 cities – both as markets and as hubs for talent. We can expect growth to be more broad-based in the medium term, with new talent hubs dotting the country.