Decoding the Impact of Non-Tier 1 Cities on Internet Business and Job Growth

The growth of job opportunities in India’s non-tier I cities has positively impacted the economy, with a combination of strong local market potential and government incentives providing an ideal environment for business growth in non-metros.

The boom in remote digitalized working environments and the consequent rise of the WFH trend has enabled job seekers to access multiple opportunities from their hometowns instead of moving to tier-I cities. The trend has propelled non-metro cities in India into hubs of innovation, and creativity, and made them a viable alternative for sourcing talent.

This is particularly true for the internet company jobs in India. India’s Internet Business industry has experienced rapid growth in recent years, largely due to increased affluence, a surge in internet users, and the widespread adoption of smartphones. Several tech giants have witnessed positive growth with a rural hiring focus.

The Decoding Jobs 2023 India Report by Taggd predicts that the contribution of India’s internet business in the nation’s total retail trade in clothing, consumer electronics, food and grocery items will increase from 4% at present to 8% in 2025.

The growth of the Internet Business sector in India has revolutionized the way commerce is conducted, creating many market opportunities, such as consumer-to-business (C2B), consumer-to-consumer (C2C), direct-to-consumer (D2C) and business-to-business (B2B). Furthermore, the Indian government has launched several initiatives under the Digital India movement to encourage digitization, including Bharat Interface for Money (BHIM), Start-up, and Umang.

In 2022, the internet sector saw an increase in job opportunities in both tier-I and non-Tier I areas, with the industry making rapid inroads into rural regions of the country. Most of the hiring was concentrated in non-tier I cities such as Chandigarh, Coimbatore, Indore, Jaipur, Kochi, Ludhiana, and Noida.

The internet business sector saw a surge in demand for sales and office services in non-tier I cities, indicating the potential of such markets and growing acceptance of digital products among consumers. The Decoding Jobs Report 2023 estimates that an additional 38% of new hires are expected to come from non-tier I cities this year. This reflects the steady growth of the sector.

Here are a few reasons why non-tier 1 cities are attracting companies in the internet sector.

Non-tier-I cities have a lower cost of living compared to tier-I cities like Mumbai, Delhi, and Bangalore. This allows companies to onboard high-quality talent at optimized  CTCs, which is advantageous for companies looking to rein in their talent costs.

Non-tier 1 cities have a large pool of talented individuals who are eager to work in the internet industry, but may be unwilling to relocate to tier-I cities due to a high cost of living and poor quality of life.

With the proliferation of technology, internet, and cloud-based services, it is easier for internet businesses to set up operations in non-tier I cities. This means that companies can hire talented professionals from these cities without having to worry about infrastructure and logistics. The Indian government also aims to provide high-speed internet connectivity across the length and breadth of the country, and the result is visible with the emergence of several technology hubs in non-tier I cities of states like Tamil Nadu, Maharashtra, and Andhra Pradesh.

These cities also offer a better work-life balance as they are less crowded and have a more relaxed pace of life. This allows employees to focus on their work and personal lives equally, resulting in a more motivated and productive workforce.

Internet companies hiring in non-tier I cities have been a game-changer for the internet sector. It opens new markets and customer bases, creates employment opportunities for local talent, and bridges the digital divide between urban and rural areas.

The real India lies in the non-metro areas, and by hiring talent from such regions, businesses can understand their customers’ needs better, build products tailored to them, identify potential untapped markets, and gain valuable insights into consumer behavior and trends.

By 2034, it is predicted that the Internet Business market in India will surpass that of the US to become the second largest in the world, and non-tier I talent will contribute significantly to it. This impressive growth reflects the increased potential of e-commerce and digital services within India as well as its booming economy.

Download the Decoding Jobs Sectoral Reports 2023 to understand the Internet Business industry better.