29 June 2011

Looking for attractive salary: Ready to move to tier II cities

Big news is coming from small towns off late. A variety of businesses ranging from IT, outsourcing, real estate, to retail are trying to expand their business empires to Tier II and Tier III cities in India. There seems to be paradigm shift in the thinking pattern of techies these days that they are seriously considering the small cities as their favorite destination.

The growth of Tier II cities is mainly driven by strong political and social will, abundance of skilled manpower, improving infrastructure, and relatively low living costs etc. It's reported that Bangalore is no more the default location for IT investment or for techies, and the Tier II & III cities are fast becoming the desired location for the IT giants.

According to a recent Income Tax data, the established business centers like Bangalore, Delhi, Mumbai, Hyderabad, Kolkata and Chennai have lost out to smaller cities like Kochi, Kanpur, Chandigarh, Lucknow, Meerut and Patna in net personal I-T (PIT).

While employment opportunities in Tier I cities are declining in a fast rhythm, secondary cities like Surat, Kochi, Ahmedabad, Chandigarh and Mangalore are driving the future growth and an Assocham report reveals that these smaller cities have surpassed the metros in creating white-collar jobs.

IT biggies like Infosys, HCL, Wipro, TCS, Oracle, IBM, and Dell etc have set their eyes on the smaller cities and many have started their operations from these cities.

According to payscale.com, the median salary for desktop support in New Delhi is Rs 228,695 and it doesn't differ much in the smaller cities like Pune Rs 219,000. Titer II cities are reportedly better in annual median salary for all employments as in Pune, it's at Rs 491,398 while in Chennai its Rs 416,903 and in Mumbai Rs 455,364. The average salary of a senior software engineer in Bangalore is Rs 322,047 - Rs 1,025,875 and Rs 295,243 - Rs 836,353 while in Noida, its Rs 318,705 - Rs 825,515 and Pune Rs 329,085 - Rs 888,323.

Another study reveals that Tier II cities are leading in job creation with Bhubaneswar recording 42.2 percent in employment generation followed by Pune with 19.7 percent. Considering the living expenses, the environment, and lifestyle in the leading cities, techies prefer to head to the smaller cities where the minimal low-pay is compensated with the low cost of living. As more IT giants are gunning for the small cities, employment opportunities are sure to hike up; but people hope that these cities would remain intact with their rich greenery, calm environment and simple life.