Why IT professionals are moving to Tier-II and Tier-III cities?

There are many reasons that Indian IT professionals and Software Engineers are moving to Tier-II and Tier-III cities in India and changing the game?

Mayank is born in Indore city (Madhya Pradesh) and studied engineering at a prestigious college from Indore. Later he moved to Bengaluru(also known as Bangalore) for better career opportunities.

Mayank works for a well-known MNC in Bengaluru, I had asked him one day that if he would consider moving back to Indore if his MNC Employer opens an office in Indore?

He immediately replied: “I would go even with a 20% salary cut; I mean it.”

This conversation is nine years old; however, there are many people like Mayank who would like to move back to their home town or at least near the home town.

What are Tier I, Tier II, and Tier III cities in India?

In 2008, based on the Sixth Central Pay Commission, Indian cities classified into X, Y, and Z are more commonly known as Tier I, Tier II, and Tier III cities respectively.

Here is the list of cities classified under X, Y and Z category:-

Cities falling under Tier1 category (population of 50 lakh and above)


Cities falling under Tier2 category (population between 5 lakh-50 lakh)

Vijaywada, Warangal, Greater Visakhapatnam, Guntur, Nellore, Guwahati, Patna, Chandigarh, Durg-Bhilai Nagar, Raipur, Rajkot, Jamnagar, Bhavnagar, Vadodara, Surat, Faridabad, Gurgaon, Srinagar, Jammu, Jamshedpur, Dhanbad, Ranchi, Bokaro Steel City, Belgaum, Hubli-Dharwad, Mangalore, Mysore, Gulbarga, Kozhikode, Kochi, Thiruvananthapuram, Thrissur, Malappuram, Kannur, Kollam, Gwalior, Indore, Bhopal, Jabalpur, Ujjain, Amravati, Nagpur, Aurangabad, Nashik, Bhiwandi, Solapur, Kolhapur, Vasai-Virar Cty, Malegaon, Nanded-Waghala, Sangli, Cuttack, Bhubaneswar, Raurkela, Amritsar, Jalandhar, Ludhiana, Puducherry, Bikaner, Jaipur, Jodhpur, Kota, Ajmer, Salem, Tirupur, Coimbatore, Tiruchirappalli, Madurai, Erode, Dehradun, Moradabad, Meerut, Ghaziabad, Aligarh, Agra, Bareilly, Lucknow, Kanpur, Allahabad, Gorakhpur, Varanasi, Saharanpur, Noida, Firozabad, Jhansi, Asansol, Siliguri, Durgapur.

Cities classified under Tier 3 category (population below 5 lakh)

The remaining cities and towns (which are not covered under X or Y category)

In recent years Tier-II cities emerged as new Information Technology (IT) destinations in India.

Here are the top reasons why Tier-II cities becoming preferred home for many IT professionals-

  1. Near to Home Town; it is easy to celebrate festivals and social gatherings with friends & family.
  2. Low-Cast Living; it is cheaper to live in Tier-II cities than to in Tier I cities
  3. Connectivity to Tier I cities; the majority of the Tier II cities are connected well to Tier I cities through major airlines
  4. Infrastructure; Internet connectivity, Mobile communications, nice Restaurants, exceptional Hospitals, excellent transport, you name anything Tier-II cities are not behind Tier I cities
  5. Highly talented and skilled resources; Tier 2 cities are growing with exemplary teaching institutions and produce excellent resources for the Technology sector.
  6. Balanced life; Have you ever think about how many hours you wasted in Bengaluru traffic in a year and what is the possibility if you can unlock those hours? Tier-II cities have a balanced life; it is not fast as Mumbai and not dull like any Tier III city.

So what you do, you think? What is your reason if you still want to live in Tier 1 cities?

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