With the government actively promoting tier-2 cities, an increasing number of companies are expanding or relocating their operations to these regions. Attracted by lower operational costs, a rapidly improving business ecosystem, and access to a growing pool of skilled talent, these cities are emerging as hotspots for corporate growth and innovation.
TeamLease data reveals that cities like Chandigarh, Jaipur, Ahmedabad, Indore, Bhubaneswar, Vizag, Coimbatore, and Kochi now boast a combined tech talent pool of approximately 490,000 to 540,000 professionals. This accounts for around 10% of India’s total tech talent pool, underscoring the growing significance of these locations.
Interestingly, signs of reverse migration are now increasingly visible in such cities, as companies and data centres leverage talent to reduce costs.
Recently, a report by Instahyre found that cities like Chandigarh, Jaipur and Indore are becoming prominent destinations for product talent. These locations are projected to witness 2x-3x growth in hiring compared to 2024.
But why are tier 2 and tier 3 cities undergoing a reverse migration of talent?
“This isn’t just an expansion—it’s ghar wapsi (homecoming),” Mohit Saxena, co-founder and CTO of InMobi, said in a LinkedIn post regarding the opening of their new office in Lucknow.
In the same post, he lamented that for years, many young professionals from Uttar Pradesh have had to move to bigger cities like Bengaluru, Delhi, or Mumbai for better job prospects. InMobi hopes to change that by bringing opportunities directly to Lucknow.
In an exclusive interaction with AIM, Saxena explained that for InMobi, this is not just about geographic expansion, it’s about redefining how and where innovation happens.
“The only reason people used to leave Lucknow was the lack of opportunities. If we can bring opportunities back to the city, there is no reason people would not want to stay,” he added.
Good infrastructure, lower population density, and the talent pool are encouraging people to choose to live and work in Lucknow. And for InMobi, the city plays a critical role in building automation, AI systems, and infrastructure for the future.
Lucknow is quickly becoming a key destination for India’s digital growth, thanks to its young population, supportive government policies, and competitive cost environment.
Hoever, InMobi’s approach to tier 2 cities like Lucknow is more strategic. “The idea is to build a development centre that delivers the same quality of products as we develop in Bengaluru, while capitalising on Lucknow’s significantly lower cost of living.”
The company currently employs 20 people in Lucknow and plans to increase its workforce to 50 by the end of FY25 while also focusing on reducing coding jobs in Bengaluru.
Earlier this year, Naveen Tewari, founder and CEO of InMobi, said the company is on track to achieve 80% automation in software coding.
“My CTO will deliver 80% automation in software coding by the end of this year. We have already achieved 50%. The codes created by the machine are faster and better, and they fix themselves,” he added.
Why Lucknow?
Alouk Kumar, founder and CEO of Inductus Group, told AIM that the city’s vibrant culture, renowned cuisine, and cost-effective living compared to established IT hubs like Bengaluru add to its appeal, making it attractive for both companies and professionals.
Resonating the same thought, Saxena mentioned that Lucknow offers a better cost of living. He added that “people can have a real life; they don’t have to spend two hours commuting or live in areas where there is no space to walk.”
Lucknow is emerging as a significant player in India’s high-tech landscape. According to a recent NASSCOM–Deloitte report, the city now hosts around 400 technology start-ups operating across edtech, health tech, e-commerce, and other sectors, supported by a blend of private initiatives and government-backed programmes.
Furthermore, the city’s IT ecosystem is already thriving, with over 100 companies—including prominent multinational corporations (MNCs) and leading domestic firms—firmly established in the region. Notable names such as Tata Consultancy Services (TCS), HCL Technologies, Wipro, Capgemini, and Nagarro have maintained a long-standing presence in Lucknow.
The report further highlights that the sector operates on a ‘plug-n-play’ model, designed to encourage entrepreneurship in IT and related domains, while also enhancing software export potential from Uttar Pradesh.
Kumar further mentioned that recent trends, as of May 2025, show an accelerated pace of growth. Within just six months, at least four major IT companies have launched operations in the city. Genpact, for instance, views Lucknow as a “strategic market, focusing on career growth and upskilling in future-ready skills”, which further underscores the city’s growing appeal.
He further added that Lucknow’s IT landscape is also characterised by the diversity of services on offer. Companies such as Mind You Infotech are making strides in web consulting and cybersecurity, SquareIT Solutions in digital marketing and web development, and Quaere eTechnologies in cloud computing.
Meanwhile, Nagarro is spearheading work in AI and data science, highlighting a robust, evolving ecosystem capable of meeting a wide array of technological demands.
Moreover, he shared that over 200 start-ups are actively innovating in the city, many of them supported by government-led AI centres of excellence (CoEs) and structured mentorship initiatives. Start-ups like Mind You Infotech and AIPROG are particularly notable for their contributions in cybersecurity and AI.
National programmes are also playing a pivotal role with Rs 5 crore allocated in the budget to develop Lucknow as the country’s first artificial intelligence city.
The report also highlighted that today, the city is home to an estimated 70,000–75,000 skilled technology professionals employed across small, mid-size, and large-scale enterprises.
Vipul Kumar of Edge & Network at CtrlS Datacenters encapsulates the city’s potential, stating that “Lucknow is quickly becoming a key destination for India’s digital growth, thanks to its young population, supportive government policies, and competitive cost environment.”
He further added that CtrlS Datacenters facility in Lucknow is cloud on-ramp ready, offering businesses in the region high-speed, secure, and reliable connectivity to leading global cloud platforms.
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