Contract staffing in Tier 2 and 3 cities in India is expected to see an increase now that companies are more open to employees working from anywhere, reports The Financial Express. Tier 2 cities include developing cities while Tier 3 cities have lower density population than Tier 1 (metropolitan cities) or Tier 2 cities. The additional number of contract employees estimated to be added this year by the IT-BPM (business process management) sector is just about 25,000. However, Lohit Bhatia, president, Indian Staffing Federation, believes that, increasingly, organisations would look to hire not in the top 40 cities but in the next 200 towns. With the physical presence of employees now less important, the talent in smaller towns can be tapped. “With jobs now moving to the ‘work from anywhere’ model companies especially in the BPM/BPO/ITes (business process outsourcing/IT enabled services) sectors will find it easier to employ people in smaller towns,” Bhatia told the Financial Express. This would help IT companies to set up offices in small towns and recruit locally.

Data analysed by the Federation shows the IT-BPM sector will add an estimated 24,900 employees on contract in 2020-21, compared to a little over 10,000 last year. The projected increase in contract staffing is expected to benefit Tier 2 to Tier 5 cities.