How IT professionals in Tier 2 Cities are earning salaries close to Bangalore and Pune

Introduction : 

Earlier, anyone who wanted to build a career in IT had little choice but to move to big cities like Bangalore, Hyderabad, or Pune. That situation has changed. Due to multiple factors, skilled IT professionals in Tier 2 cities such as Jaipur, Kochi, and Indore are now earning salaries close to those in Tier 1 cities.
According to Business Standard, the average CTC for senior IT professionals in Tier 2 cities is around ₹28 lakh, compared to ₹32–35 lakh in Tier 1 cities.

Why This Is Happening Now

In this blog, we look at the key factors driving this shift.

 a. Remote Work Culture

Remote and hybrid work models are now widely accepted. This allows IT professionals to work for companies based in Tier 1 cities while living in Tier 2 locations. Since companies prioritize skilled professionals who can deliver results, they are offering competitive salaries regardless of location. According to LinkedIn discussions, around 68 percent of companies now offer remote or hybrid work. As a result, salaries in Tier 2 cities have increased by up to 40 percent for tech roles, bringing them closer to metro-level pay.

b. Nationwide Demand for Tech Skills

With the rise of remote work, GCCs, and AI-driven projects, skills such as AI and ML, cybersecurity, cloud computing, DevOps, and data engineering are in high demand across India. This has pushed companies to adopt skill-based hiring instead of relying only on job titles or location. To attract the right talent, companies are offering better salary packages even to professionals based in Tier 2 cities.

c. Cost and Quality of Life Advantage

Tier 2 cities have a lower cost of living, which improves overall quality of life even if salaries are slightly lower than Tier 1 cities. For example, a DevOps engineer earning ₹15 lakh in Indore may enjoy a better lifestyle than someone earning ₹20 lakh in Bangalore due to high living expenses in metro cities.

Salary Comparison: Tier 2 vs Metro Hubs :

a. Senior-Level Pay Convergence :

According to a *Business Standard* study, senior IT professionals earn an average salary of ₹28.38 lakh in Tier 2 cities, compared to ₹32.40 lakh in Tier 1 cities. The gap is narrowing significantly.

b. Mid and Entry-Level Trends

At the mid-level as well, strong demand is driving salary growth. While pay is still lower than Tier 1 cities, it is rising quickly. According to *The Times of India*, mid-level IT professionals in Tier 2 cities are seeing consistent salary increases.

c. Sector and Role Breakdown

Roles that require in-demand technical skills are receiving competitive salaries in Tier 2 cities compared to general IT roles. For example, data analytics roles with remote work options are offering strong packages in Tier 2 locations.


Average salaries for Data Analysts in Tier 2 cities by experience level:

Salary Comparison 

Reasons Behind This Salary Trend

a. Global Capability Centers and Decentralization

Many GCCs and IT companies are expanding operations beyond Bangalore due to lower operating costs and government incentives. This has increased demand for skilled IT professionals and created high-value roles in cities such as Kochi, Jaipur, Surat, and Vadodara.

b. Skills and Performance-Linked Pay

Companies are increasingly rewarding skills and performance. Professionals who can deliver results are paid well regardless of location. This approach is helping equalize pay potential across regions.

c. Remote Hiring Practices

Most companies now offer hybrid or remote work options and focus on talent availability rather than local salary bands. This has reduced location-based pay differences.
Real Stories and Perception Shift
Real-life examples show this clearly. Many professionals in Tier 2 cities earn ₹10 lakh and enjoy a better lifestyle than peers earning ₹20 lakh in Bangalore due to lower living costs.

 What This Means for IT Professionals

a. Leverage Remote Hiring Trends

Professionals should actively explore remote and hybrid opportunities to improve quality of life and increase savings.

b. Invest in High-Demand Skills

Studies show that companies pay higher salaries for skills in strong demand, such as AI, cloud computing, and cybersecurity.

c. Negotiate Using Data

During salary discussions, candidates should refer to market data and salary benchmarks to support their expectations.

Conclusion

Data clearly shows that strong skills matter more than location. IT professionals with in-demand expertise are now earning salaries close to those in Bangalore or Pune while living in Tier 2 cities. The salary gap is shrinking, and in some senior roles, it has almost disappeared.

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