IBM is expanding base beyond metros to speak a diverse set of client requirements and to tap into a larger talent pool. The move to penetrate into central India, Kochi, Ahmedabad, and suburbs of cities such as Hyderabad has a cost advantage as well, according to reports.

Thirukkumaran Nagarajan, vice-president and head of human resources, IBM India/South Asia says, “having work locations beyond the metros will help us address growing client requirements, as well as provide flexibility for our employees.”

“We are expanding because there is incredible talent and skill sets in these cities. It is also price competitive and cost competitive to an extent,” adds Nagarajan.

IBM’s expansion plans come on the back of many tech and start-ups moving beyond metros.

According to reports, on March15, Tech Mahindra is also expanding into various tier-II cities to find and attract the best talent.

C.P. Gurnani, managing director and chief executive officer (CEO), Tech Mahindra says, “we expect more than 10 percent of our new hires to come from tier-II cities. It is helping us attract talent.”

"Very good talent is available in places such as Bhubaneswar, Chandigarh, Kolkata, Indore, Vijayawada, and Coimbatore," says Gurnani.

Mysuru, Coimbatore, and Visakhapatnam are some of the prominent cities where tech firms and start-ups are strengthening bases.

IBM India has its regional headquarters in Bengaluru and now has offices across many cities in India, including Delhi, Mumbai, Chennai, and Pune. Another advantage of moving to smaller towns is the larger catchment from where companies can meet their diversity targets.

Aditya Narayan Mishra, director and CEO, CIEL HR Services says, “consumer and fast-moving consumer goods not only need office space and talent but also need access to supply chains. Tech and start-ups on the other hand can afford to have more flexible approaches to their work.”