IT Hiring in Tier-2 Cities Surges 53% Y-O-Y: Coimbatore, Nagpur, and Nasik Lead the Way

BENGALURU: IT firms are expanding their hiring horizons beyond the traditional metro cities, with tier-2 cities emerging as key hubs for employment growth. According to the latest foundit Insights Tracker, Coimbatore, Nagpur, and Nasik are leading this growth, driven by sectors such as IT, BFSI, Manufacturing, and FMCG.

The IT industry has seen exceptional growth in tier-2 cities, with a 53% year-over-year (y-o-y) increase, far surpassing the national average of 30%. This shift in hiring momentum towards tier-2 cities, especially in IT and entry-level roles, is notable. Job seekers now have diverse opportunities closer to home, reflecting India's rich and varied talent landscape. For employers, these cities offer strategic opportunities for sustained growth, driven by improved infrastructure, targeted investments, and the strategic intent to diversify geographically.

Pranay Kale, Chief Revenue & Growth Officer (CRGO) of foundit, commented, 'This growth, the strongest we've seen in recent years, clearly underlines tier-2 cities' increasing importance in India's employment landscape.' Fresher hiring rose 11% y-o-y in June, driven by non-IT sectors like hospitality (40%), oil & gas (29%), real estate (25%), and strong demand in healthcare.

Naukri's report also highlights the positive trend in the IT sector, which posted a 5% y-o-y growth in June 2025. This turnaround was largely powered by tier-II cities, with Baroda (14%), Coimbatore (10%), Kochi (9%), and Ahmedabad (8%) emerging as key hubs. Fresher hiring was up 11% y-o-y in June, largely led by non-IT sectors, according to Naukri. Hospitality (40%), Oil & Gas (29%), and Real Estate (25%) drove this growth, along with strong traction in healthcare, the report said.

The demand was particularly strong for seasoned professionals with over 16 years of experience, who saw a 16% jump in hiring. Meanwhile, AI/ML roles across industries continued to post robust growth at 42% y-o-y, said Naukri. BPO/ITES continued its upward trend with 19% overall growth in June. The sector also recorded a 23% rise in fresher hiring and saw double-digit growth in mid (20%) and senior (16%) hiring. The highest salary band (20+ LPA) saw 24% growth in hiring within the sector.

Pawan Goyal, ED & CBO, Naukri, said, 'What stood out in June was the sharp pickup in hiring across core service sectors like Hospitality and BPO/ITES. It was also encouraging to see IT hiring turn positive after a muted spell, especially with strong demand emerging from tier-II cities.'