Source: Economic Times
Comibatore and Nagpur are among 40 global cities identified by Bangalore based globalization and technology market advisory firm Zinnov as next destinations for technology talent.
The study titled ‘Next Frontier Cities for Technology Talent’ identified 40 Global cities suitable for hiring technology talent, after a comprehensive evaluation of over 400 of them on key parameters like talent availability, market maturity, cost, peer group eco-system, government policies etc. These 40 cities are spread across the regions with:
9 cities in North America
9 cities in South America
12 cities in EMEA
10 cities in APAC
The Next Frontier cities highlighted in the report are Ankara (Turkey), Asuncion (Paraguay), Boise (USA), Brasov (Romania), Caracas (Venezuela), Casablanca (Morocco), Chongqing (China), Cluj-Napoca (Romania), Coimbatore (India), Colombo (Sri Lanka), Durban (South Africa), Florianopolis (Brazil), Foshan (China), Guatemala City (Guatemala), Guayaquil (Ecuador), Hanoi (Vietnam), Islamabad (Pakistan), Jacksonville (USA), Johor Bahru (Malaysia), Kharkhiv (Ukraine), Kiev (Ukraine), Lima (Peru), Limerick (Ireland), Lodz (Poland), Lviv (Ukraine), Managua (Nicaragua), Montevideo (Uruguay), Nagpur (India), Porto Alegre (Brazil), Rabat (Morocco), Recife (Brazil), Roanoke (USA), San Salvador (El Salvador), Santa Cruz (Bolivia), Santo Domingo (Dominican Republic), Sofia (Bulgaria), Tianjin (China), Tucson (USA), Wichita (USA) and Wuhan (China).
Commenting on the study, Pari Natarajan, CEO, Zinnov, said, “There are about 40 established locations and another 40 emerging ones, where technology companies have a large presence. Fierce competition for talent and ever increasing compensation structure in existing cities is forcing these companies to look beyond the typical talent hubs and venture into the off-beaten path.”
The report highlighted:
- There is a 86% cost differential between high cost established locations (e.g. Silicon Valley) and the next frontier cities in the Asia Pacific region.
- Most of these Next Frontier cities have good education ecosystem, which is conducive to breed top talent.
- Chongqing (China), Lima (Peru) and Hanoi (Vietnam) are the top three frontier cities for R&D talent.
- Companies in the forefront of this evolution have already started to leverage ‘next frontier cities’ to perform R&D, IT and shared services activities.
- Faster release cycles, complexities of global team management & stable workforce have renewed interest to expand into suitable Tier 2 cities in the US for talent growth.
- “It is a myth that technology companies hire only niche skills. Like any other enterprises, their talent requirements vary by role. In fact only 20-40% of their roles require hard-to-find or niche skills. For all other roles, they look for optimal locations that have the availability of talent at the right cost,” said Vamsee Tirukkala, managing principal, Zinnov.
- Next Frontier cities have some key challenges as well, related to talent scalability, operations consolidation, talent relocation, business continuity, services’ provider support and technology ecosystem availability. Though these cities have key disadvantages when compared to established locations; the report shows that they are ideal for companies looking to hire 50-100 employees for their centers.