India is home to over 5.8 million tech professionals, making it the second-largest developer base in the world—right after the U.S. But here’s what most companies miss: the best engineering talent isn’t limited to just Bangalore or Delhi anymore.
As remote work becomes the norm, businesses are tapping into talent across India’s tier-1 and tier-2 cities. Whether you’re building a product from scratch or scaling an existing tech stack, choosing the right city can impact your cost, team retention, and delivery speed.
This blog breaks down the top Indian cities for building a remote development team—based on real factors like talent quality, infrastructure, cost, and growth potential. Let’s dive in.
Key Factors for Choosing a City
Not all cities are equal when it comes to building remote development teams. Some offer deep engineering talent but come with high attrition. Others give you lower costs but limited senior resources. Here are the key factors you need to weigh before picking a city:
1. Talent Availability and Quality
Start with the basics—can you actually hire the developers you need? Look at the number of engineering colleges, the quality of grads, and the presence of experienced professionals. Cities like Bangalore and Pune have large pools of mid-to-senior developers, while tier-2 cities offer great junior talent with strong fundamentals.
2. Cost of Hiring and Operations
Salaries in cities like Bangalore and Gurgaon can be 25–40% higher than in Indore, Kochi, or Bhubaneswar. Office space, internet, utilities—even team outings—cost less outside tier-1 hubs. If you’re building a lean team with long-term retention in mind, tier-2 cities are worth considering.
3. Infrastructure and Connectivity
You can’t run a remote team without strong infrastructure. Fast, stable internet, power backups, and modern coworking spaces are must-haves. Metro cities already check these boxes, but many tier-2 cities—like Coimbatore or Ahmedabad—are catching up fast with upgraded IT parks and airport access.
4. Time Zone and Communication Overlap
Most Indian cities fall in the IST zone, but proximity to international airports and good internet makes real-time communication smoother. Cities with direct flights to your HQ or regional hubs can help when occasional in-person meetings or team rotations are needed.
5. Local Government and Startup Ecosystem Support
Some states actively encourage tech growth. Telangana’s T-Hub in Hyderabad, KSUM in Kerala, and ITSEZs in Madhya Pradesh have created an ecosystem that attracts startups and remote teams alike. These incentives can also reduce red tape and speed up setup.
6. Employee Retention and Lifestyle Fit
Retention is often overlooked until it becomes a problem. Cities with better work-life balance, lower traffic, and affordable living—like Indore or Kochi—tend to have more loyal employees. You’ll spend less on rehiring and more on scaling your core team.
Top Tier-1 Cities to Build a Remote Development Team
Metro cities have long been the backbone of India’s tech economy. They offer large, diverse talent pools and mature ecosystems, making them ideal for companies that need speed, seniority, and scalability. But these advantages come with trade-offs—higher costs, intense competition, and growing attrition. Here’s a deeper look at each major metro:
1. Bangalore (Bengaluru)
Bangalore has more tech startups per capita than any other Indian city. With over 10,000 startups, it’s the unofficial headquarters for India’s product engineering, AI, and SaaS economy. It attracts top-tier talent from across the country, many of whom are alumni of premier institutions like IISc, IIIT-B, and NITs.
The ecosystem is rich—meetups, hackathons, product communities, and investor networks are deeply entrenched. If you’re hiring for innovation-heavy roles—think full-stack, DevOps, AI/ML, or platform architecture—Bangalore offers unmatched depth. However, the same talent is being chased by unicorns, MNCs, and global capability centers (GCCs), pushing up salaries and attrition.
Why It Works: Access to elite product engineers, strong peer networks, and global tech exposure.
What to Consider: Cost of hiring can be 30–50% higher. Poaching is common. Retention strategies must be proactive.
2. Hyderabad
Hyderabad has emerged as one of India’s fastest-growing tech cities, thanks to focused government investment (TS-iPASS) and a stable policy environment. Global giants like Microsoft, Facebook, and Google have their largest Indian campuses here. Salaries are 15–20% lower than in Bangalore, but talent quality remains competitive.
The city strikes a balance between services and product ecosystems. It’s strong in full-stack, enterprise SaaS, cloud engineering, and increasingly in data science. Infrastructure is reliable—metro connectivity, wide roads, and lower congestion than Bangalore.
Why It Works: Cheaper than Bangalore, but with access to high-quality tech talent. Hyderabad also boasts rapid infrastructure growth.
What to Consider: Slightly less exposure to cutting-edge startup ecosystems; fewer early-stage product engineers.
3. Pune
Pune has quietly built a robust tech industry, especially in enterprise software, IT services, and now SaaS. It’s home to leading engineering colleges like COEP and Symbiosis, which consistently produce work-ready graduates.
The city’s proximity to Mumbai makes it a viable tech satellite for many Western companies. It’s especially strong in Java, Python, cloud engineering, cybersecurity, and embedded systems. Importantly, Pune-based engineers tend to stay longer with companies—attrition is 20–30% lower than in Bangalore, making it a solid choice for teams focused on stability and retention.
Why It Works: Excellent cost-retention balance, reliable talent pool, and less aggressive poaching.
What to Consider: May lack niche AI or blockchain ecosystems. Community events and innovation circles are smaller.
4. Chennai
Chennai’s engineering culture is grounded in process excellence. It’s a powerhouse for IT services, back-end engineering, and SaaS support. Companies like Freshworks, Zoho, and Chargebee have scaled engineering here with strong success.
The city produces a massive number of engineering graduates annually, many of whom are trained in core programming, automation, QA, and system design. Chennai’s tech talent is known for strong work ethic, loyalty, and clarity in documentation and systems thinking. English fluency is high, and salary expectations are moderate.
Why It Works: Reliable delivery teams, strong technical discipline, and low churn rates.
What to Consider: Startup culture is less active; fewer opportunities to tap into experimental or frontier tech.
5. Delhi-NCR (Gurgaon, Noida, Delhi)
Delhi-NCR has a massive engineering and management talent pool spread across Gurgaon, Noida, and Delhi. While Gurgaon attracts startups and product companies (especially in fintech, edtech, and healthtech), Noida has a stronger presence in traditional IT services and BPOs.
The region benefits from world-class infrastructure—metro connectivity, premium coworking spaces, and international airport access. It’s also home to IIT Delhi and IIIT Delhi, producing top-tier engineers. However, NCR’s salaries can rival Bangalore’s, and attrition is high in startups. The region’s talent is also split across sectors, so hiring tech talent often requires more strategic outreach.
Why It Works: Access to business talent + tech, strong academic institutions, strategic location for North India focus.
What to Consider: Talent is fragmented across sectors. High costs and fast turnover in Gurgaon-based teams.
Top Tier-2 Cities to Build Remote Development Teams
Tier-2 cities in India are no longer just backup options—they’re fast becoming preferred hubs for building lean, high-retention remote development teams. With improved infrastructure, strong educational pipelines, and lower cost of living, these cities offer a smart alternative to the crowded metros.
Let’s explore the top contenders.
1. Indore
Indore is one of India’s cleanest and most livable cities, but it’s also gaining recognition for its growing IT ecosystem. It’s home to IIT Indore, IIPS, and several strong engineering colleges that feed into a rising pool of software talent.
The local government actively promotes tech parks and startup incubation through MP Startup Policy 2022. Companies benefit from low operational costs—office space, salaries, and living expenses are 30–40% cheaper than tier-1 cities. Most importantly, employees in Indore show higher job loyalty, making it ideal for building long-term, stable teams.
Why It Works: Low attrition, affordable setup, and solid early-stage talent.
What to Consider: Smaller talent pool for senior or highly specialized roles.
Go Global, 30% Faster – Launch your GCC in India now!
Secure the best location, cut setup costs, and gain a competitive edge—before it’s too late!
2. Ahmedabad
Traditionally known for finance and trade, Ahmedabad is quickly emerging as a promising tech destination. The city has strong educational institutions like DAIICT, Nirma University, and IIT Gandhinagar, producing graduates skilled in web development, UI/UX, and data analytics.
It offers excellent infrastructure, low crime rates, and a culture of discipline and entrepreneurship. Gujarat’s policies around ease of doing business and startup incubation (via iCreate and GIFT City) make it attractive for remote teams that require reliable delivery and low overhead.
Why It Works: Pro-business ecosystem, good engineering colleges, and strong infrastructure.
What to Consider: Still developing a startup mindset; limited exposure to cutting-edge product work.
3. Coimbatore
Coimbatore has long been a manufacturing and education hub, but it’s now gaining traction in IT services and product development. It boasts over 25 engineering colleges, including PSG Tech, producing a steady flow of technically strong graduates.
Salaries are 35–40% lower than Chennai or Bangalore, and the work culture emphasizes reliability and continuity. You’ll find solid mid-level developers skilled in Java, PHP, automation, and QA. The Tamil Nadu government is actively investing in developing IT corridors here to attract more tech firms.
Why It Works: Strong engineering pipeline, disciplined teams, and minimal attrition.
What to Consider: Smaller pool for niche roles and limited peer learning opportunities.
4. Kochi
Kochi has become Kerala’s startup capital, thanks to state initiatives like Kerala Startup Mission (KSUM) and the Infopark SEZ. The city has a high English proficiency rate, decent technical colleges, and growing demand for developers in fintech, SaaS, and mobile app development.
Internet penetration is excellent, coworking spaces are abundant, and the quality of life is among the best in India. With a large number of Keralites returning from Gulf and U.S. jobs, Kochi offers a mix of local and global experience at an affordable cost.
Why It Works: Bilingual tech talent, startup support, and strong connectivity.
What to Consider: Smaller developer community and a slower pace of scale compared to metros.
5. Bhubaneswar
Bhubaneswar is a quiet performer in India’s remote work landscape. It offers access to well-trained developers from institutes like KIIT and IIIT Bhubaneswar, known for producing reliable talent in full-stack, Java, and DevOps roles.
The Odisha government has invested in IT parks and digital skilling programs, encouraging companies to set up operations here. Salaries are low, living costs are minimal, and employee loyalty is high. While the ecosystem is still growing, it’s ideal for companies prioritizing cost and continuity.
Why It Works: Low-cost, stable teams with basic to mid-level tech capability.
What to Consider: Limited access to senior engineers or product-focused professionals.
Tier-1 vs. Tier-2: What Should You Choose?
Choosing between a tier-1 and a tier-2 city isn’t just about budget—it’s about strategy. Each has strengths and trade-offs, and the right choice depends on what you’re building, how fast you’re scaling, and what kind of team culture you want to create.
When Metros Make Sense
Go with a metro city if:
- You need senior talent with experience at product companies or MNCs.
- You’re working on complex systems like AI, enterprise SaaS, or cloud platforms.
- You want to scale quickly, with access to recruiters, meetups, and peer networks.
- Your team requires frequent collaboration with other engineering hubs in India.
Downside? You’ll pay more—salaries, office space, and churn rates are higher. You’ll also compete with unicorns and Big Tech for talent, which can stretch your hiring timelines.
When Tier-2 Cities Are the Smart Move
Choose a tier-2 city if:
- You’re building a cost-efficient, high-retention team that can grow steadily.
- Your tech stack is stable, and you need consistent delivery—like web/mobile development, automation, or QA.
- You’re okay training junior developers into long-term contributors.
- You want to reduce operational overhead while still maintaining quality.
Tier-2 cities offer more loyalty, lower hiring costs, and easier team management—but may lack exposure to bleeding-edge tech or rapid scaling infrastructure.
Hybrid Approach: Best of Both Worlds
Many companies today go hybrid: set up a core team in a metro (for leadership, architecture, rapid problem-solving), and build execution teams in tier-2 cities to drive scale, support, and cost optimization.
This model gives you depth, reach, and flexibility—without burning through your budget or over-centralizing talent in one location.
Conclusion
India has evolved from a single-city tech destination to a multi-city powerhouse for remote development teams. Whether you need a high-velocity product squad in Bangalore or a stable, cost-efficient delivery team in Indore, the options today are more diverse—and more strategic—than ever before.
There’s no one-size-fits-all answer. The right city depends on what you’re building, how fast you’re scaling, and what kind of team culture you value. Some companies find success in metros with rich ecosystems. Others thrive in tier-2 cities where loyalty is high and overhead is low. And many combine both in a hybrid model to maximize reach and resilience.
Wherever you choose to build, make sure your setup supports more than code—it should support ownership, growth, and trust. Because great remote teams aren’t built by geography. They’re built by intent.
FAQs: Building a Remote Development Team in India
1. What’s the biggest advantage of hiring in tier-2 cities?
You get cost savings (30–40% lower salaries) and better employee retention. Talent may need more training but tends to stay longer, making it ideal for building stable teams.
2. How do I legally hire developers in India?
You can hire through a local entity, a third-party employer of record (EOR), or set up a subsidiary. Each has different legal and tax implications, so consult with a local advisor.
3. Can I hire senior developers outside of metros?
Yes, but the pool is smaller. Tier-2 cities often have strong junior and mid-level talent. For complex architecture or product strategy roles, metros still offer more depth.
4. What’s the ideal team structure for a remote setup in India?
Start with a strong local lead (tech or ops), 2–3 experienced developers, and a few junior resources. Combine that with solid onboarding, async workflows, and regular check-ins to ensure alignment.
5. Can Supersourcing help me build a remote development team in India?
Yes. Supersourcing specializes in helping global companies set up high-performing remote tech teams across India. Whether you’re exploring metros or tier-2 cities, Supersourcing handles talent vetting, legal compliance, onboarding, and long-term team management—so you can scale faster, without the operational stress.