International firms are eyeing tier-2 locations to expand their engineering R&D operations.
According to a BusinessLine report, cities such as Ahmedabad, Vadodara, Coimbatore, Kolkata, Chandigarh, Thiruvanantha-puram, Kochi and Visakhapatnam are the new favourites.
The reasons, it said, are increasing availability of talent, cost arbitrage, low attrition rates, growing ecosystem of tech start-ups and support from State governments.
While Nissan Motor Company Ltd signed an MoU with the Kerala government to set up its first global centre for digital operations last year in Thiruvanthapuram, Automation Anywhere, one of the top five global leaders in RPA (robotic process automation) for enterprises, is expanding its presence in Vadodara.
The report further said that there are 976 multinational corporations which have set up 1,257 GICs in India, of which 68 GICs are in tier-2 locations.
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