‘HR cost in Mangaluru is 30-35% lower than tier 1 cities'
Giving a presentation at the conclusion of 'The Novigo Story' hosted by Vertex Managed Workspace here on July 18, Ms. Jacob, a business development manager with Mangal said, 'With 10 incubators support early-stage ventures, 92.1% graduate success and new new IT office space coming up, we're targeting 2 lakh IT jobs by 2033, five unicorns, and $10 billion in exports.'
She further said, 'Mangaluru now contributes 14.3% of Karnataka's GDDP—the second highest in the State. In FY24, IT exports crossed ₹3,000 crore, generating over ₹60 crore in GST and ₹1,800 crore in salaries. Over 220 IT/ITES firms operate here, with 40 new entrants last year alone.'
She also acknowledged the role of enabling infrastructure in driving this momentum. 'Workspace providers like Vertex, WrkWrk, Bharath Group, Karuna, Workshaala, and Regus are building over 15 lakh sq. ft. of plug-and-play facilities, empowering startups and enterprises alike. These flexible, tech-ready offices are powering Mangaluru's emergence as a regional innovation hub and positioning it as a Bengaluru+1 destination for GCCs,' Ms. Jacob said.
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Time of India
7 hours ago
- Time of India
Small cities, big future: Tier-II & III towns emerge as hotspots for GCC growth in India
India 's tier-II and III cities can emerge as hubs of global capability centres (GCC), supported by the government's proposed dedicated framework, incentives from competing states, and a growing ecosystem of enablers that are assisting the GCC setup. Experts say the shift can foster inclusive development, generate jobs beyond traditional hubs, and address the challenges of over-saturation and infrastructure pressures in metro cities. Explore courses from Top Institutes in Please select course: Select a Course Category Management Digital Marketing PGDM Cybersecurity MCA others Data Analytics Degree Technology MBA Operations Management Data Science healthcare Artificial Intelligence Design Thinking Project Management Finance Data Science Others Healthcare Leadership Public Policy CXO Product Management Skills you'll gain: Duration: 9 Months IIM Calcutta CERT-IIMC APSPM India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK GMPBE India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIM Kozhikode CERT-IIMK General Management Programme India Starts on undefined Get Details As per industry estimates, India has more than 1,700 GCCs as of FY24, with roughly two new centres being established every week. The sector generates $64.6 billion in revenue and employs about 1.9 million people, with more than 82,000 of these jobs being in tier-II and III cities. Tier-1 cities like Bengaluru, Hyderabad, and Chennai continue to be the primary bases. Emerging cities have around 7% of India's GCCs in 2024, up from 5% in 2019. The government in the February budget announced a framework "as guidance to states for promoting Global Capability Centres in emerging tier 2 cities", focused on enhancing availability of talent and infrastructure, building bylaw reforms, and mechanisms for collaboration with industry. There is also a rise in mid-market firms looking to India to set up GCCs, with over 120 such firms expected over the next year, as per ANSR. Research firm Everest Group expects 75% of the 1,200-1,250 new GCCs in India in the next five years to be small and mid-sized firms. "We are likely to see a convergence between the two trends-tier-2 and tier-3 cities attracting GCCs, and mid-market companies choosing India as a strategic delivery location," said Rohan Lobo, partner, Deloitte. Currently, many mid-market firms are initially gravitating toward established tier-1 hubs due to the comfort of ecosystem maturity, Lobo said. However, there is a growing case for a more distributed approach. Talent and costs Digitally skilled talent in tier-2 cities grew over 25% over the past two years, according to a Nasscom-Zinnov report. These locations also see 20-30% lower attrition compared to the 15.2% attrition in tier-1 hubs. From an operational lens, companies can save around 25% on employment costs by setting up in emerging cities due to lower real estate prices, reduced overheads, and sustainable compensation expectations, the report said. Take silicon to systems design solutions firm Synopsys, for example, which has a GCC in Bhubaneswar. "Establishing hubs in tier 2 and 3 locations like Bhubaneswar has created new opportunities for talented engineers to make a real difference at Synopsys, which then has a ripple effect that reaches virtually every industry," Rituparna Mandal, vice president, customer success group, Synopsys, told ET. "We're seeing more graduates in electronics, VLSI (Very Large Scale Integration), and related fields every year, and many of them are eager to work on global projects." The Bhubaneswar centre works closely with the company's R&D groups worldwide and has tied up with local universities like IIT Bhubaneswar. "The cost of living and operations can be more manageable, which helps us invest more in our people and long-term growth," said Mandal. Decentralising innovation Firms like Mastercard, which has a GCC in Vadodara employing nearly 400 people across various businesses and technology programmes, also see this as an opportunity to decentralise innovation. "Operating in emerging hubs is not just a cost decision-it's a future-facing growth strategy aligned with our purpose to power economies and empower people," said Rajesh Mani, SVP & head-Asia Pacific technology hubs, Mastercard. "We see these locations as more than satellite offices-they are platforms to embed leadership, shape culture, and decentralise innovation." The Vadodara GCC contributes to several key global solutions that make payments safer, smarter, and more accessible, he said. This includes the Mastercard Digital Enablement Services (MDES) platform, which tokenises card and account numbers to enable secure digital transactions, and the firm's Carbon Calculator. Global engineering and manufacturing companies have established R&D and automation hubs in cities such as Vadodara and Nashik, capitalising on established technical institutes and industry clusters to drive innovation in areas like IoT, process automation, and advanced analytics, said Lobo. Similarly, a US-based SaaS provider set up its first offshore centre in Mysuru, attracted by the city's strong IT education ecosystem and government incentives, and the company reported faster ramp-up times and greater team stability compared to metro peers. In Coimbatore, a global electronics manufacturer is pioneering IoT-enabled, advanced manufacturing and automation practices, while in Salem, a prominent financial services organisation is streamlining operations through intelligent process automation and digital workflows. Policy push Minister for electronics and IT Ashwini Vaishnaw said earlier this month that the government is working on a roadmap to expand GCC presence in tier-2 and 3 cities, with a focus on strengthening industry-academia collaboration to build a talent pipeline. The government is doing a "mapping" exercise to identify the right tie-ups, said a person aware of the developments. The centre is also mulling a model where states can be brought onto a common portal so that GCCs can get the permissions they need quickly. State governments, on their part, have been trying to attract GCCs as well. Last year, Tamil Nadu announced it will incentivise the creation of high paying jobs in new GCCs by providing a payroll subsidy. Karnataka incentivises GCCs to expand beyond metros to cities like Mysuru, Mangaluru, Shivamogga and Hubballi-Dharwad. Uttar Pradesh is the latest to release a GCC policy with sops such as freshers recruitment subsidy and R&D and innovation incentives. "This coordinated approach by various states creates a competitive yet collaborative environment that benefits the entire ecosystem," said Mrinal Duggal , Head of Sanofi GCC (Hyderabad). Establishing GCCs in tier-2 and tier-3 cities would address the infrastructure pressure on metros while creating innovation clusters that can rival traditional tech hubs, Duggal said. Tier-1 cities could pivot toward more specialised, high-value innovation and R&D, further elevating India's global value proposition. Challenges However, unlocking the full potential of tier-2 and 3 locations requires navigating a unique set of structural and ecosystem challenges, said Mani. "While these cities are gaining operational maturity, many continue to face gaps in cloud infrastructure, startup depth, and local R&D capabilities," he said, citing a recent PwC India report. "Inconsistent high-speed connectivity, limited availability of cloud-ready data centres, and uneven regulatory clarity can further impact scalability." The industry meanwhile is calling for rationalisation of safe harbour margins in the transfer pricing regime and plug-and-play infrastructure in tier-2 and 3 locations to help GCCs set up quickly and smoothly. (This article is published in partnership with Deloitte)
Indian Express
13 hours ago
- Indian Express
TCS layoffs: Why India's IT dream needs a wake-up call in the age of AI
Tata Consultancy Services' (TCS) recent announcement that it will be laying off 12,000 employees, amounting to 2 per cent of its global workforce, has expectedly started causing significant hand-wringing about the impact of AI on India's labour market. The clarification from K Kirthivasan, the company's CEO, that the lay-offs are because of 'skill-mismatch' and not AI, however, is unlikely to quell growing unease within the country, as the IT sector has had an outsized impact on India's economic story. It employed just over five million people in 2024 but contributed to around 7 per cent of GDP and accounted for 50 per cent of India's services exports. Unsurprisingly, therefore, the IT sector has traditionally been the most straightforward and sought-after path to upward economic mobility and prosperity for India's legions of engineering graduates, and any dip in the employment prospects of this sector is likely to have significant ripple effects on India's economy and politics. Coupled with several other more bombastic statements by global giants like Meta and Salesforce on the reduced need for entry-level engineers and a turbulent business outlook for India's IT sector, an anxiety-inducing cocktail is born. In this context, there are three key takeaways from TCS layoffs to keep in mind. First, it is of course entirely likely that these layoffs are not caused by AI. Net hiring by India's IT giants has been going down for several quarters, partly to balance the aggressive hiring spree in the aftermath of the Covid pandemic, and partly due to a more volatile global economy, which has reduced spending by potential clients. This slowdown in hiring is not limited to the IT sector. That said, there are also other emerging industries, particularly Global Capability Centres (GCCs), which now employ nearly 2 million, and the startup ecosystem, which are fast becoming attractive alternative employment pathway for young engineers. We are not even sure what the actual impact of AI on employment and labour force participation globally has been so far, so it might be a little premature to lay the blame for these cuts at AI's feet. Second, this does not mean that AI will not have an impact on India's IT sector. Historically, our IT giants have based their offerings on India's labour cost advantage, relying on the hundreds of thousands of engineers who graduate every year to provide standardised, relatively low-skilled services mostly in support functions at a fraction of global costs, best exemplified by the fact that starting salaries in the IT industry have not changed in a decade. AI can already do nearly everything that fresh hires in the sector are expected to do, and if the cost structures allow, there is very little reason for IT companies to keep hiring tens of thousands of fresh graduates a year. It can be reasonably expected that net hiring in these companies will no longer reach the levels seen in the last couple of decades, and any excess workforce, the so-called 'bench' in IT HR parlance, will be systematically trimmed. Third, the anxiety surrounding a single company's lay-off decision is indicative of a much larger issue in the Indian economy – the fact that quality employment opportunities have not kept pace with economic growth rates and the growing aspirations of India's youth. Low wage levels in the private sector and growing living costs have made India's middle class more precariously placed than ever before, indicated by the rapidly expanding use of personal debt for consumption and basic necessities. The advent and increased use of AI will also change the nature of jobs that are likely to remain relevant. Demand, even within the IT space, is shifting from entry-level testing and support work to domain specialists in areas like cybersecurity, cloud computing, full-stack capabilities and AI itself. There is also growing demand for personnel in sectors like data centre management and chip design. While these jobs are likely to be high-paying, they will require significant investments in education and can never reach the employment numbers of the IT sector. With manufacturing not taking off as expected and the narrowing opportunities in IT, fresh graduates, particularly from Tier-II and Tier-III colleges, might increasingly feel bleak about their employment opportunities. The anxiety around TCS layoffs should be seen in the larger context of the structural issues within the Indian economy. Mitigation of any potential negative fallout due to widespread AI adoption on an already stressed workforce will require a multipronged approach, including a rapid, affordable skilling programme, a complete overhaul of India's higher education system, and policy incentives to boost other sectors, particularly emerging areas like biotech, pharmaceuticals and advanced manufacturing. No longer can one sector take on the burden of upholding India's middle class and economic prospects the way that IT has in the past. More diversified, well-paying employment opportunities will only strengthen the Indian economy during an uncertain time. Shashank Reddy is Managing Partner, Evam Law & Policy
News18
17 hours ago
- News18
Jacob Diamond: Twice The Size Of The Kohinoor, But This Nizam Used It As A Paperweight
Last Updated: Hyderabad's Nizam once used the Jacob Diamond, worth crores, as a paperweight. Today, this massive gem is secured by the Government of India in Mumbai Mir Mehboob Ali Khan, the sixth Nizam of Hyderabad (born 1866), ascended the throne at just three and ruled until 1911. Known for his fondness for Western culture, luxury cars, clothing, and etiquette, he held one of India's grandest royal courts. Among his prized possessions was the Jacob Diamond, reportedly the world's fifth-largest, twice the size of the famed Kohinoor, the latter now part of the British royal crown. How A Diamond Found Its Place In A Shoe The stunning tale of the Jacob Diamond centres around Mehboob Ali Khan, his Armenian servant Albert Abid, and the mysterious jeweller Alexander Malcolm Jacob. In the 1890s, the diamond sparked widespread scandal, not least because of its unusual discovery, wrapped in a shoe and tucked away for years. Albert Abid, the Nizam's personal servant, oversaw his master's wardrobe, jewellery, and personal effects, managing twelve other attendants. Deceptively, Abid sold the Nizam's used clothes back to him as brand new. Over time, this earned him enough wealth to establish a sprawling shop in Hyderabad known simply as 'Abid', later giving the locality its name. In 1891, he acquired the 184.75‑carat 'Imperial' diamond for Rs 21 lakh, intending to sell it to the Nizam for Rs 50 lakh. A promise of Rs 5 lakh commission to Abid was also made should the deal succeed. Though the Nizam initially agreed in principle to the transaction, the British authorities intervened, forbidding such a lavish purchase. The Nizam's own Prime Minister also opposed it. When Jacob eventually presented the gem, the Nizam declared that he did not like it. Jacob claimed this was a ruse to deceive the British, but the Nizam demanded his money back. Jacob's refusal led to drawn‑out litigation. Courtroom Spectacle: A Scandal Across Empires The dispute escalated into an international sensation. Jacob hired top legal counsel, and the case became the first time an Indian prince was summoned before a British commission for testimony; an extraordinary embarrassment. Though Jacob was ultimately acquitted of fraud, he never reclaimed the full amount. From Shoe To Paperweight To National Treasure Following the trail of scandal, Mehboob Ali Khan wrapped the Jacob Diamond in a rag, kept it in an old shoe and stored it in his wardrobe drawer. His successor, Mir Osman Ali Khan, later found the gem and repurposed it as a mere paperweight, showing scant regard for its size or value. Decades later, the diamond was placed into a trust and eventually acquired by the Government of India in 1995 for over Rs 13 crore. It now resides securely at the Reserve Bank of India in Mumbai, Maharashtra. Fate's Irony: Triumphs And Downfalls Albert Abid's deceptions led him to amass significant wealth, ultimately settling in England with his family. Conversely, Alexander Jacob lost not just money, but reputation, forced to close shop and spend his remaining days as a drifter. These entwined lives and the diamond's curious path make the Jacob Diamond one of the world's most compelling royal gems. Location : Hyderabad, India, India First Published: July 28, 2025, 14:34 IST News india Jacob Diamond: Twice The Size Of The Kohinoor, But This Nizam Used It As A Paperweight Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
