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Unlocking Growth: Benefits of Setting Up an Offshore Centre in Emerging Cities across India

Updated: Oct 5, 2023

In today's globalized world, businesses are constantly seeking innovative ways to remain competitive, reduce costs, and access a skilled workforce. One strategy that has gained immense popularity in recent years is setting up offshore centres or Global Capability Centers (GCCs) in tier 2 and tier 3 cities across India. These cities are emerging as hotspots for business expansion, offering a host of benefits to companies looking to tap into their skilled and talented workforce. Mikro Grafeio, a social impact startup, is at the forefront of this movement, striving to create 100,000 job opportunities in these cities while enabling local economies to thrive.



Benefits of Setting Up Offshore Centers in Tier 2 & Tier 3 Cities

  • Cost Efficiency:

One of the primary reasons companies are drawn to tier 2 and tier 3 cities in India is cost savings. Operating in these cities typically involves lower real estate costs, lower employee salaries, and reduced operational expenses compared to tier 1 cities like Mumbai or Bangalore. Mikro Grafeio specializes in helping businesses optimize their cost structures by identifying the most cost-effective locations and establishing efficient operations.

  • Access to a Skilled and Talented Workforce:

India has a vast pool of skilled and talented professionals, and this talent is not limited to the major metros. Tier 2 and tier 3 cities are home to a growing number of educated individuals with diverse skills, including IT, engineering, finance, and customer service. By setting up operations in these cities, companies can tap into this talent pool, often at a lower cost than in larger urban centers.

  • Reduced Competition for Talent:

In tier 1 cities, competition for top-tier talent can be fierce, leading to higher salaries and increased turnover rates. In contrast, tier 2 and tier 3 cities offer a more relaxed job market, making it easier for companies to attract and retain skilled employees. Mikro Grafeio assists businesses in identifying the right cities for their specific talent needs and establishing a strong employer brand to attract top talent.

  • Improved Work-Life Balance:

Tier 2 and tier 3 cities are known for their better work-life balance compared to the hustle and bustle of metropolitan areas. This can result in happier and more productive employees, which is essential for long-term business success. Additionally, lower commute times and reduced congestion contribute to a more relaxed and productive work environment.

  • Government Incentives and Support:

The Indian government has implemented various policies and incentives to encourage businesses to set up operations in tier 2 and tier 3 cities. These incentives may include tax breaks, subsidies, and infrastructure development support. Mikro Grafeio has extensive experience in navigating the regulatory landscape and leveraging government incentives for the benefit of its clients.

  • Diverse and Inclusive Workforce:

Setting up operations in smaller cities allows companies to promote diversity and inclusion by tapping into a more diverse talent pool. This not only aligns with corporate social responsibility goals but also brings a fresh perspective to the workforce, fostering innovation and creativity.

  • Scalability and Business Continuity:

Tier 2 and tier 3 cities offer scalability opportunities that can be challenging to achieve in densely populated urban areas. With lower operational costs and the availability of talent, businesses can easily scale their operations up or down as needed. Moreover, these cities often have robust infrastructure and fewer natural disasters, reducing business continuity risks.


Mikro Grafeio's mission to create 100,000 job opportunities in tier 2 and tier 3 cities across India is not only a testament to their commitment to social impact but also an acknowledgement of the numerous advantages these cities offer to businesses. By setting up offshore centres in these cities, companies can achieve cost efficiency, access a skilled workforce, reduce competition for talent, and foster a more balanced work-life environment. With the support of expert advisory and consulting services provided by Mikro Grafeio, businesses can unlock the full potential of these emerging growth hubs while contributing to the prosperity of local economies. It's a win-win scenario that promises both business success and positive societal impact.





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