Are tier 2 and 3 cities the future for Indian businesses?

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ARE TIER 2 AND 3 CITIES THE FUTURE FOR INDIAN
BUSINESSES?
In India, it is believed that a bright, young
student who grew up in a small town works hard in
school and college and excels. With big ambitions
and attractive report cards, migrating to the
nearest metropolis or tier 1 city is the next
logical step. There is no doubt that life in the
hometown is peaceful, but the career and academic
opportunities in the big cities are too good to
ignore. This traditional trajectory has been
reversed after living in tier 1 or metro cities
for a decade or two, many people, especially
millennials, are returning to their hometowns. In
India, tier 2 and 3 cities are surging as
business hubs, opening up outstanding job
opportunities. Because of technological
advancements, these cities are attempting to
compete with metros or tier 1 cities in terms of
quality of life and convenience.
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Nowadays, professionals can move to a small city
to fulfill their dreams or improve career growth.
The surge also happened due to the pandemic as
professionals had to move back home. With the
introduction to work from the home policy, they
could continue working even from their hometown.
Both professionals and the company figured out a
new way that was just as efficient, if not
more. Exorbitant rents and soaring operational
costs in tier 1 cities can be a massive barrier
for startups setting up their businesses.
Compared to industry giants, startups consider
these initial costs to be much lower, find
skilled candidates at lower rates, and local
governments in tier 2 and tier 3 cities are more
welcoming. In recent times, tier 2 cities such as
Surat, Jaipur, Patna, and Indore have documented
an economic growth rate of more than 40, making
them the perfect geography for big firms. Setting
up operations in these cities means welcoming
financial advantages at various levels. Bigger
working spaces are available at cheaper rates,
which allows enterprises to operate on a larger
scale. Tier 2 and tier 3 cities also offer a
varied pool of fresh and young talent. When
trained correctly, organizations can enjoy a
large, skilled workforce at a fraction of the
cost compared to tier 1 cities.
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Why are Tier 2 and Tier 3 cities the best choices
in 2023?
1. Houses Best Talents In The Industry Most
companies are dealing with a series of difficult
situations and are now providing more work
flexibility to employees. A senior managing
director and leader of India's most prominent
firm mentioned that this migration would open up
new pathways for local talents and support people
seeking greater location flexibility. Accounting
offshoring organizations like Entigrity also
realize the value of opening offices in non-metro
cities. They are opening up offices in tier 2 and
3 cities such as Surat, Chandigarh, Nashik,
Raipur, and many more. 2. High Attrition Followin
g the COVID-19 pandemic, digitalization has
increased the demand for working professionals.
Experts at every level of their careers are
showered with opportunities, and organizations
are giving away colossal raises to keep the best
people in the industry. However, famous
enterprises have been experiencing substantial
attrition rates for a long time. And migrating to
a small city can help them acknowledge the
problem.
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3. Paradigm shift A report submitted by Mckinsey
states that "post-pandemic, employees prefer
working from home for at least three days a week.
More than 25 of participants suggested switching
jobs if their company returned to complete
on-site work." Today, mental health has become a
top priority for employees post-pandemic.
Mckinsey's study further says that more than half
of the surveyed want their enterprises to adopt a
hybrid working model. Since the disruptions
created by the COVID-19 pandemic has also pushed
business globally to optimize their costs and
resources, this is one of many reasons that has
paved the way for migrating resources and
operations to tier 2 3 cities. The COVID-19
pandemic forced businesses to realize how they
operate and minimize their costs and resources.
This is another reason businesses felt that
migrating to non-metro cities was a good idea.
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Entigrity is a trusted offshore staffing partner
to over 600 accountants, CPAs, and tax firms
across the US and Canada. Our flexible and
transparent hiring model gives helps firms of all
sizes to hire staff for accounting, bookkeeping,
tax preparation, or any other task for 75 less
cost. As a firm 'run by accountants, for the
accountants,' Entigrity captures the hiring needs
of accounting firms most precisely, providing
staff that works directly under your control and
management still, you are left with the least to
worry about compliance, payroll taxes, overheads
or any other benefits.
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