20% Jobs in India Offering Remote Working: Indian Tech Companies Expanding Beyond Metros, Boosting Hybrid Work Culture [REPORT]

Indian IT companies are increasingly adopting remote and hybrid work models to improve employee retention and productivity. Interestingly, Coimbatore, Visakhapatnam, Jaipur, Chandigarh, and Kochi have emerged as the top new job locations for workforce expansion in Q1 FY25.

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The COVID-19 pandemic has brought one dramatic shift in work culture that is highly appreciated by employees, especially in India: the adoption of remote and hybrid work models. Even though the pandemic has subsided and things have returned to normal, Indian tech companies have increasingly been adopting these flexible work arrangements for their employees instead of mandating a daily office presence.

A recent report by Xpheno, shared exclusively with ET, highlights the rise in hybrid and remote job openings in India. Despite the full reopening of offices, nearly 20% of all job postings in the country are now for remote and hybrid roles, a substantial increase from just 0.9% in 2020. In July 2024, the total job postings for hybrid and remote roles across sectors stood at 50,000, compared to 210,000 postings for purely office-based roles.

In the IT sector alone, out of approximately 110,000 job postings last month, 42,000 (38%) were for hybrid and remote roles.

“The hybrid format was born out of the enterprise and employees meeting mid-way in transitioning from full-time WFH to WFO,” said Satish Manne, partner at Xpheno.

It is no surprise that a hybrid work culture has become increasingly preferred among IT employees, improving their performance through better work-life balance. However, it is important to understand how companies are effectively implementing hybrid work models while maintaining employee productivity and overall costs.

Embracing Hybrid Work Culture

During the two-year pandemic, many Indian IT companies recognized the benefits of employees working from home. However, they soon discovered that a fully remote setup lacked the essential physical interactions between teams, which are crucial for optimal performance.

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At the same time, calling all remote employees, mostly living in tier-2 and smaller cities, back to the office for all 5-6 working days proved impractical. This is mainly because a majority of these employees were reluctant to leave their families and relocate, making a full return to the office unfeasible.

Also, companies are quick to realise that the main hesitancy among remote employees is not working from their offices; it’s relocating back to Bengaluru, Delhi-NCR, Mumbai and Hyderabad, which are not just expensive but also challenging to live as a nuclear family.

Therefore, companies have adopted a hybrid work culture as a balanced solution. In 2024, many top IT companies, such as Wipro, Infosys and HCLTech, are promoting this flexible working model. For instance, seven out of ten Wipro employees now come to the office three times a week. Similarly, nine out of ten Infosys employees at its development centres in India work in a hybrid mode.

A recent analysis by recruitment consultancy firm Michael Page India supports this shift, revealing that over 65% of Indian IT firms mandate employees to visit the office at least three times a week.

IT Companies Looking Beyond Metro

The hybrid work culture has also opened doors to new opportunities. As companies are equipped with tools to manage remote working environments more efficiently, they are shifting many core functions to countries and cities where resources are easily and economically available.

Recent reports, including the Economic Survey and Infosys ESG, highlight a significant trend among tech firms and Global Capability Centers (GCCs) of multinationals: the expansion of operations beyond metropolitan areas. This shift is largely driven by lower operational costs, better government policies and subsidies, reduced attrition rates, and a growing talent pool that emerged from relocations during the COVID-19 pandemic. As a result, companies are making notable investments in tier-2 cities.

Infosys has opened offices in Visakhapatnam, Indore, Nagpur, Hubballi, Vizag, and Coimbatore to accommodate employees who prefer working closer to their base locations.

Similarly, Hitachi’s subsidiary GlobalLogic has opened a 50-seat facility in Ahmedabad, HCLTech has launched a global delivery centre in Patna, and IBM has established its Gen AI innovation centre in Kochi. TCS, India’s largest tech firm, will also follow suit.

According to TeamLease data, emerging tech hubs such as Chandigarh, Jaipur, Ahmedabad, Indore, Bhubaneswar, Vizag, Coimbatore, and Kochi now collectively house between 490,000 and 540,000 tech professionals. This represents approximately 10% of India’s total technology talent pool, which stands at around 5.5 million.

Another report highlights that Coimbatore, Visakhapatnam, Jaipur, Chandigarh, and Kochi have emerged as the top new job locations for workforce expansion in Q1 FY25. These cities are preferred by 18.28%, 15.88%, 15.46%, 15.31%, and 14.89% of employers, respectively.

Future Ahead

However, not all is well with the remote work culture. Many MNCs and startups are still facing various challenges with remote working environments. As a result, the hybrid work culture in Indian IT companies might end completely in the near future. TCS has already started working towards that direction.

According to its new revised policy, TCS employees who work from the office less than 60% of the time will not receive any variable pay for the quarter. Those who maintain an office presence between 60-75% and 75-85% will receive 50% and 75% of their variable pay, respectively.

Ultimately, the success of hybrid work and the growth of tier-II tech hubs will depend on how effectively companies can adapt to changing workforce needs and leverage technology to enhance employee experience and productivity.

What are your thoughts on the ongoing trend of Indian IT companies embracing the hybrid work culture by expanding their offices beyond metro cities? Let us know in the comment section below!

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