image courtesy: Photo by Josh Hild from Pexels
Every Metro city is a mini-Bharat in itself. People from several states come, live and work here, due to the non-IT industry and IT revolutions.
These are the target customers and consumers of:
- Cab aggregators who take them to work and home
- Food supply chain companies
- Hotels and restaurants
- Road-side food stalls
- PG Accommodations
- Rental Accommodations
All these sectors have gone through huge impact as people moved to their hometowns. WFH (Work from Home) has become a necessity. This may most likely become a new work-culture. This is only about executive workers. There is a hug labor force. They are into road and building constructions. The support community such as house maids, gardeners, launderers, plumbers and electricians. Their plight is altogether a big topic in itself.
Focusing back on IT enabled Services, the percentage of work force returning to metro cities is a question. If a right ‘Work From Home’ solution is in place that is secure, compliant, delivers good performance and user experience, they may not return to these metros.
Back home, cost of living is lower compared to these metros. There is a comfort of being in their own zones. Employment in hand. A dream for many people to get this combination, which might have come true.
Now look at these IT employers:
- Will they be able to achieve the same revenues with these away-employees?
- Will the business be same again?
- Is there a risk of doing away with these away-employees?
- Can they manage the show with people on-board from local cities?
- Can the local market cater to the skill sets needed by these employers?
The Big 7 IT companies of India have presence in almost all metro and tier-2 cities. You may see the shift of population back to their respective cities (or towns nearby), if the Big 7 decide to segregate these offices based on the local work force only. This maintains the workforce need along with proximity to their natives. Yet, the skill balance will be still in question. There is a huge demand for enabling the skills of employees who are closer to your local offices.
Let’s put it this way, you are from one of the Big 7 IT companies, working in Bangalore, native of Pune. You move to Pune branch, to your home. The branch needs are not matching your specialization. Go ahead and reskill yourselves.
If this trend starts, then IT companies will be able to avoid the impact of people moving out of the metros. Many of these skilled employees may not have to incur extra cost impact of living in metros.
There will be impact on the above mentioned 6 sectors, for sure. But these sectors will be able to adopt themselves to the redefined demands of the local markets. They will make a come back in near future.
This realignment must happen. Big companies need to make the first move. Tier-2 and 3 companies will follow. Give importance to the local work force coming at an affordable price with the right skills.
Let’s see how the dimensions are going to change!
