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India Inc moves to smaller cities to cut costs
Tuesday, May 06, 2008 16:38 [IST]
New Delhi: Corporate India has begun to move towards tier II and tier III cities like Ranchi, Meerut, Udaipur and Patiala to bring down its rising manpower and infrastructure costs in the metros, said Industry body Assocham today.

In a report on "Trends of Job Openings", Assocham said, the share of jobs increased to 38 per cent in tier III cities and 28 per cent in tier II cities.

Out of the total 60 cities that have been tracked, tier II and tier III cities have cornered about two third of new jobs created in the first three months of this year, the chamber said.

Ranchi has emerged as the top employment provider with a share of 13.80 per cent among the tier III cities followed by Mangalore, Mysore, Raipur, Udaipur, Aurangabad, Patiala, Jalandhar, Meerut and Vishakhapatnam.

"A change in the job trend has been observed with emergence of small cities among the top employment generating places while traditionally the maximum of job openings used to be concentrated in metropolitan cities", Assocham President Venugopal Dhoot said.

Among the tier II cities, Pune (16.50 per cent) and Lucknow (12.30 per cent) were on the top in providing maximum vacancies. Ranchi (13.80 per cent) and Mangalore (11.60 per cent) emerged as the highest employment generating cities in the tier III segment, the study said.

The study conducted for the period January-March 2008 also reveals that the rising demand and advantage of skilled and cheap manpower in tier II and tier III cities is pushing industry to look beyond the metropolitan cities that are expanding its sphere and providing large number of vacancies in these cities.
Source : PTI

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