Introduction: A New Chapter in BPO Evolution
The Indian BPO (Business Process Outsourcing) industry has long relied on Tier-1 cities like Bengaluru, Mumbai, Gurgaon, and Hyderabad as the core of its operations. But as we step into 2025, this trend is shifting dramatically. Tier-2 cities are emerging as high-potential, talent-rich destinations for BPO firms.
At Employment Mantras, a job consultancy with a sharp focus on BPO hiring, we’re witnessing a powerful evolution: businesses are now looking beyond metros, drawn by lower costs, loyal talent, and fresh potential in cities like Lucknow, Indore, Jaipur, Kochi, and Bhubaneswar.
Understanding Tier-2 Cities in the BPO Context
Tier-2 cities are urban centers that are well-developed but not as commercially saturated or expensive as Tier-1 metros. These cities have infrastructure, educational institutions, connectivity, and increasingly, workforce-readiness to support BPO operations.
🌟 Prominent Tier-2 Cities in the BPO Wave:
- Indore – A cost-effective, English-proficient workforce
- Lucknow – Strong Hindi-speaking talent pool, ideal for domestic support
- Kochi – Growing IT presence and multilingual professionals
- Chandigarh – Good connectivity to North India and skilled graduates
- Coimbatore – South India’s emerging voice and tech support hub
Why Tier-2 Cities Are Ideal for BPO Growth
✅ 1. Cost Efficiency
Setting up a BPO unit in Tier-2 cities can reduce operational costs by 25-40%. Office rentals, salaries, and infrastructure expenses are significantly lower, which translates into better margins.
✅ 2. High Talent Availability
Most Tier-2 cities boast several colleges and universities that produce thousands of graduates each year. For instance, Indore and Lucknow together produce more than 100,000 graduates annually, many of whom are eager to work locally.
✅ 3. Lower Attrition Rates
Attrition is a chronic challenge in Tier-1 BPOs, often crossing 35-40% annually. In contrast, Tier-2 cities see 15-20% attrition as employees prefer stability, lower cost of living, and proximity to family.
✅ 4. Multilingual Workforce
In Tier-2 regions, candidates typically speak local languages along with Hindi and English, making them ideal for domestic voice processes and vernacular customer service.
Case in Point: Indore’s BPO Growth Story
Indore, once a traditional trading town, is now a BPO and ITES (IT Enabled Services) hub. Companies like Teleperformance, Impetus, and Yash Technologies have scaled operations here due to:
- A professional workforce with strong English communication
- Efficient infrastructure backed by Smart City initiatives
- Government incentives under Madhya Pradesh’s IT/ITES Policy
Moreover, the city’s metro, public transport, and coworking facilities make it ideal for BPOs to expand sustainably.
Current Crisis: Talent Saturation in Tier-1 Cities
Tier-1 BPO hubs are facing a crisis:
- High salary expectations
- Increased attrition
- Rising real estate prices
- Stiff competition for talent
This has forced many BPOs to reconsider their expansion strategy, seeking more cost-effective, loyal, and untapped workforces.
According to NASSCOM, more than 30% of new BPO hires in 2024 came from Tier-2/3 cities. This trend is expected to continue through 2025, touching 40% by the end of the year.
Challenges Faced by BPOs in Tier-2 Cities
Despite the advantages, Tier-2 city expansion comes with hurdles:
- Limited exposure to international client handling
- Skill gaps in advanced customer service tools
- Accent training and professional grooming may be needed
- Perception issues among employers unfamiliar with these cities
That’s where Employment Mantras steps in—to bridge the gap between potential and readiness.
What BPO Clients Can Expect from Tier-2 Talent
Through our placements in the past 12 months, we’ve noted:
- Higher loyalty and retention: Many Tier-2 hires remain with employers for 2+ years.
- Quicker adaptability: Freshers are fast learners and perform well with short-term training.
- Improved soft skills: Candidates are increasingly attending finishing schools and communication training.
Popular BPO Roles in Tier-2 Markets
- Voice Process Executives (Inbound/Outbound)
- Chat Support Agents
- Email Handling Specialists
- Back Office Executives
- Technical Support Representatives
- Process Trainers and Team Leaders
These roles are being filled rapidly in cities where BPOs earlier had zero footprint.
Employment Mantras: Empowering the Tier-2 BPO Revolution
At Employment Mantras, our mission goes beyond placements. We help clients strategically tap Tier-2 talent pools, offering:
🔹 Pre-Screened Talent
All candidates undergo English communication, soft skills, and CRM aptitude tests.
🔹 Industry-Ready Training
We collaborate with training partners to teach candidates tools like Freshdesk, Zoho CRM, Salesforce basics, and Ameyo.
🔹 Campus Recruitment Programs
We have tie-ups with regional colleges to offer clients bulk hiring from verified campuses.
🔹 Custom Hiring Plans
Whether you need 10 agents for a voice process or 50 chat support executives, we customize hiring as per project timelines and language needs.
Future of BPO in Tier-2 Cities – 2025 and Beyond
India’s BPO industry is entering Phase 2 of decentralization, with Tier-2 and Tier-3 cities projected to create over 1.2 million jobs in customer service, tech support, and back-end processing by 2027.
BPO firms that ignore these locations risk missing out on affordability, loyalty, and long-term growth.
Conclusion
The next wave of BPO growth lies not in the skyscrapers of metro cities but in the dynamic, rising skylines of Tier-2 India. With infrastructure support, high-quality graduates, and cost advantages, these cities are no longer second best—they’re first choice for forward-thinking BPOs.
Need the right talent to grow your BPO business globally?
At Employment Mantras, we specialize in sourcing industry-ready professionals with deep experience in the BPO sector—from voice and chat agents to backend executives and team leaders.
We understand Tier-2 cities and help you hire loyal, cost-effective, and efficient talent that fits your business goals.
📞 Consult with us today and future-proof your BPO operations with the right people in the right places.