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Global Capability Centres (GCCs) are shifting senior technology roles back to metro hubs from Tier-II cities and adopting hybrid hiring models to cope with a severe talent crunch.
Smaller cities are currently taking more than 75 days to fill leadership positions, compared with 42-56 days in the metros, staffing firms told ET.
For specialised roles in AI, cybersecurity, and cloud architecture, the hiring timeline is often stretching beyond 90 days in Tier-II cities, forcing companies to rethink recruitment strategies in these locations.
Kapil Joshi, CEO of Quess Corp, said the slowdown is driven by a shortage of experienced talent rather than weak demand. “The challenge is not cost or infrastructure. It is the depth of experience available locally,” he said.
In deep-tech segments such as defence technology, unmanned aerial vehicles (UAVs), and robotics, 40-45% of roles risk remaining unfilled without structured reskilling or relocation, said Joshi. In BFSI-focused GCCs, nearly half of the advanced roles planned for Tier-II centres are eventually returning to metro hubs.
Experts say the delay is happening before interviews even begin. Roop Kaistha, regional manager APAC at AMS, said interview timelines are broadly similar across cities. “Once candidates enter the pipeline, interviews usually take 15-23 days everywhere,” she said. “The real difference in Tier-II cities is sourcing. Senior and specialised talent pools are smaller, which extends discovery and conversion time.” As a result, overall time-to-hire for senior roles often stretches beyond 45-60 days, she added.
To manage shortages, companies are narrowing the pay gap between metros and Tier-2 cities for scarce skills.
Joshi said the traditional 15-18% Tier-2 salary discount has compressed to 12-15% for roles in GenAI, payments platforms and cybersecurity. “For high-demand skills, companies are paying market premiums regardless of location,” he said.
Premiums of 30-40% for GenAI roles and 25-30% for ML Ops and cyber threat intelligence are becoming common.
While companies are paying up for scarce skills, broader salary levels in tier-II cities remain below the metros. Experts said this is driven by cost structures and the limited presence of senior leadership roles outside the Tier-I hubs.
Consequently, many GCCs are reworking their location strategies. Neeti Sharma, CEO of TeamLease, said companies are increasingly following a hub-and-spoke approach. “Leadership, architects and niche specialists continue to be hired in Tier-I centres, while execution and mid-level roles are built in Tier-2 cities,” she said.
She noted that cities such as Coimbatore, Kochi, Ahmedabad, Jaipur, Indore, and Bhubaneswar are emerging as stronger Tier-II hubs due to engineering colleges and existing IT ecosystems.
Tier-II cities, however, offer a key advantage in retention. Vikram Ahuja, co-founder of ANSR, said attrition rates in several emerging locations are as low as 9%. “In Bengaluru and Hyderabad, attrition remains in the 16-18% range,” he said. Lower churn improves continuity and supports long-term engineering ownership, he said.
Still, scale takes time. Monica Pirgal, CEO of Bhartiya Converge, said most GCCs need 12-24 months to stabilise hiring at a meaningful scale in Tier-II cities. “Expansion intent is strong, but execution is gradual,” she said. Despite faster growth rates, around 90% of jobs in GCCs remain concentrated in metropolitan locations.
Joshi said the trend is unlikely to reverse quickly. “Around 15-20% of senior R&D and leadership mandates planned for Tier-II cities are still being rerouted back to metros because the required capability depth is not available locally,” he said.
Source: EconomicTimes
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