Top 5 Tier 2 & Tier 3 Cities for
Call Centers in India
Introduction
India’s call center and BPO industry is experiencing a transformative shift. While traditional hubs like Bangalore, Mumbai, and NCR continue to dominate, tier 2 and tier 3 cities are rapidly emerging as the new powerhouses of customer service excellence. Between 2019 and 2022, the market share of tier 2 and tier 3 cities in India’s BPO sector grew from 11% to 18%, and this momentum shows no signs of slowing down.
According to industry research, over 40% of call center demand now originates from tier 2 and tier 3 cities. These emerging hubs offer compelling advantages: lower operational costs (40-60% savings compared to metro cities), access to fresh, multilingual talent, excellent infrastructure development, and strong government support. For businesses looking to establish or expand their call center operations, these cities represent the perfect blend of cost-effectiveness and quality.
This comprehensive guide explores the top 5 tier 2 and tier 3 cities for call center operations in India, with detailed insights into each city’s unique advantages, infrastructure, talent pool, and the leading companies operating there. Whether you’re considering outsourcing or setting up your own operation, this guide provides everything you need to make an informed decision.
Top 5 Tier 2 & Tier 3 Cities for Call Center
After extensive research and analysis, we’ve identified the top 10 AI contact center platforms that are transforming customer experience in 2025. Each platform has been evaluated based on features, user ratings, pricing, and overall market presence.
1. Bhubaneswar, Odisha
Bhubaneswar, the capital of Odisha, is rapidly positioning itself as one of India’s most promising BPO destinations. Often referred to as the ‘Smart City of the East,’ Bhubaneswar combines highly competitive operational costs with improving infrastructure and a growing talent pool. The city has made significant strides in establishing itself as a viable alternative to traditional BPO hubs, offering cost advantages significantly lower than established metros.
Odisha is becoming an emerging BPO Hub →
- Cost Advantage: Operational costs are 50-60% lower than Bangalore or NCR, making it extremely attractive for cost-conscious businesses.
- Growing Infrastructure: The city has seen significant infrastructure improvements with IT parks like Infocity, DLF Cybercity Bhubaneswar, Fortune Towers, and Mindtree Campus. Smart city initiatives have created reliable power supply, excellent connectivity, and modern office spaces conducive to BPO operations.
- Talent Pool: With over 35,000 graduates entering the workforce annually from institutions like KIIT University, Utkal University, and various engineering colleges, Bhubaneswar offers access to educated, English-speaking professionals at competitive salary rates.
- Government Support: The Odisha government actively encourages IT and BPO businesses through various incentives, tax benefits, and ease-of-doing-business reforms.
- Quality of Life: Lower cost of living, good healthcare facilities, rich cultural heritage, and emerging modern infrastructure make it attractive for both employers and employees.
- Venturesathi: A rising star in the BPO industry, Venturesathi has established its presence in Bhubaneswar with operations in Rourkela. The company offers AI-integrated contact center services, back-office solutions, and IT support. Venturesathi is demonstrating that Odisha can successfully host and scale quality operations, including customer service excellence and specialized industry solutions. Their focus on ROI-driven outcomes and transparent pricing has made them a preferred partner for businesses in real estate, BFSI, e-commerce, and healthcare.
- Mindtree (LTIMindtree): One of the major IT services companies with a significant campus in Bhubaneswar, offering IT-enabled services and customer support.
- Infosys BPM: Has operations in the city providing various business process management services.
- Tech Mahindra: Provides customer experience and BPO services from their Bhubaneswar center.
| Company | Services & Specialization |
|---|---|
| Venturesathi | AI-integrated contact center, back-office solutions, IT support. Focus on BFSI, real estate, e-commerce, healthcare. ROI-driven outcomes, transparent pricing. |
| Mindtree (LTIMindtree) | IT-enabled services, customer support, digital transformation solutions |
| Infosys BPM | Business process management, customer experience, finance & accounting |
| Tech Mahindra | Customer experience, BPO services, IT-integrated solutions |
2. Coimbatore, Tamil Nadu
Known as the ‘Manchester of South India,’ Coimbatore has evolved into a prominent BPO and call center hub. With its strong educational ecosystem, skilled talent pool, excellent connectivity, and industrial heritage, Coimbatore attracts both domestic and international businesses seeking reliable, cost-effective customer support services.
- Strong Educational Base: Home to prestigious institutions including PSG College of Technology, Amrita Vishwa Vidyapeetham, and Karunya Institute, providing a steady stream of qualified graduates.
- Multilingual Workforce: Agents proficient in Tamil, English, Malayalam, and other South Indian languages, ideal for regional and international campaigns.
- Industrial Heritage: Strong manufacturing and textile base translates to a disciplined, process-oriented workforce.
- Cost-Effective: Significantly lower operational costs compared to Chennai or Bangalore while maintaining quality.
- Excellent Infrastructure: Modern IT parks, reliable internet connectivity, and good transportation network.
- Cognizant: Substantial presence offering IT services, consulting, and BPO solutions with global reach.
- Concentrix: Innovation-focused with AI, analytics, and cloud technologies for enhanced customer experience.
- CSS Corp (Movate): Specializes in AI-driven tech support and customer experience services.
- TCS BPO: Delivers finance, accounting, customer service, and HR operations for clients across industries.
- HGS (Hinduja Global Solutions): Healthcare, tech support, and customer care operations.
- Sutherland Global Services: Large delivery center providing multilingual customer support.
| Company | Services & Specialization |
|---|---|
| Cognizant | IT services, consulting, BPO solutions. Global reach, enterprise-focused |
| Infosys BPM | Customer experience, application development, infrastructure services, analytics |
| Concentrix | Omnichannel customer engagement, AI-augmented performance, innovation in CX management |
| https://www.movate.com/CSS Corp (Movate) | AI-driven tech support, customer experience, infrastructure management, generative AI |
| TCS BPO | Finance & accounting, customer service, HR operations across industries |
| HGS | Healthcare, tech support, customer care with automation integration |
3. Jaipur, Rajasthan
Jaipur, the capital of Rajasthan, has emerged as a major BPO destination with its large talent pool, cost advantages, and strong government support. The city’s proximity to NCR provides additional connectivity benefits while maintaining significantly lower operational costs.
- Large Talent Pool: Multiple universities including Rajasthan University, MNIT, and engineering colleges produce thousands of graduates annually.
- Excellent Connectivity: Strong transportation links to Delhi and other major cities, with international airport.
- Cost Effective: 30-40% lower operational costs compared to metro cities.
- Government Initiatives: Rajasthan government’s IT/ITES policy offers various incentives including tax exemptions and subsidies.
- Quality of Life: Rich cultural heritage, growing modern infrastructure, and reasonable cost of living.
- Infosys BPM: Large center providing comprehensive BPO services.
- Wipro: Significant operations in customer service and technical support.
- WNS Global Services: Focus on finance, travel, and insurance outsourcing.
- Genpact: Analytics-driven process optimization and customer support.
- Tech Mahindra: IT-integrated CX operations and technical support
| Company | Services & Specialization |
|---|---|
| Infosys BPM | Comprehensive BPO services, large center operations, enterprise solutions |
| Wipro | Customer service, technical support, IT-enabled services |
| WNS Global | Finance, travel, insurance outsourcing. Process excellence and analytics |
| Genpact | Analytics-driven process optimization, ML-powered insights, banking & insurance focus |
| Tech Mahindra | IT-integrated CX operations, technical support, digital transformation |
4. Chandigarh, Punjab
Chandigarh, India’s first planned city, offers world-class infrastructure, high living standards, and an educated workforce. Its strategic location as a tri-state capital (Punjab, Haryana, Himachal Pradesh) provides access to a diverse talent pool and excellent connectivity to northern India.
- World-Class Infrastructure: Planned city layout with excellent roads, reliable power, modern office spaces, and IT parks.
- High Living Standards: Clean, green city with good healthcare, education, and quality of life attracting top talent.
- Educated Workforce: Multiple universities including Panjab University, PEC Chandigarh, and numerous professional colleges.
- Strategic Location: Proximity to Delhi NCR with access to tri-state talent pool.
- Professional Culture: Strong work ethic and professional attitude in the workforce.
- Quess Corp: Comprehensive business services including BPO operations.
- Tech Mahindra: IT-enabled services and customer support.
- Tata Consultancy Services: IT services and BPO solutions.
- Convergys (now Concentrix): Customer management and technology solutions.
| Company | Services & Specialization |
|---|---|
| Quess Corp | Comprehensive business services including BPO operations, workforce management |
| Tech Mahindra | IT-enabled services, customer support, digital solutions |
| TCS | IT services, BPO solutions, enterprise technology services |
| Concentrix | Customer management, technology solutions, omnichannel engagement |
5. Indore, Madhya Pradesh
Indore, the commercial capital of Madhya Pradesh and India’s cleanest city for six consecutive years, has emerged as an attractive BPO destination. With access to IIM Indore graduates, growing IT infrastructure, and central India location, Indore offers unique advantages for call center operations.
- Quality Talent: Access to IIM Indore graduates and multiple engineering colleges providing management and technical talent.
- Central Location: Strategic position in central India enabling pan-India operations.
- Growing IT Infrastructure: Emerging IT parks, SEZs, and modern office spaces.
- Multilingual Workforce: Proficiency in Hindi, English, and regional languages.
- Government Support: Madhya Pradesh government’s IT/ITES policy with various incentives.
- Livability: Consistently ranked as India’s cleanest city with good quality of life.
- Infosys BPM: Comprehensive business process services.
- Tech Mahindra: Customer experience and IT-enabled services.
- HCL Technologies: IT services and BPO operations.
- TCS BPO: Finance, accounting, and customer service operations.
- Genpact: Process optimization and analytics-driven solutions.
| Company | Services & Specialization |
|---|---|
| Infosys BPM | Comprehensive business process services, enterprise solutions |
| Tech Mahindra | Customer experience, IT-enabled services, digital transformation |
| HCL Technologies | IT services, BPO operations, infrastructure management |
| TCS BPO | Finance, accounting, customer service operations |
| Genpact | Process optimization, analytics-driven solutions, digital operations |
Choosing the Right City for Your Call Center
When deciding where to establish or outsource your call center operations, each of these five cities offers distinct advantages. Here’s a detailed comparison to help you make an informed decision
| Factor | Bhubaneswar | Coimbatore | Jaipur | Others |
|---|---|---|---|---|
| Cost Advantage | 50–60% lower than metros | 30–40% lower | 30–40% lower | 25–35% lower |
| Annual Graduate Pool | 35,000+ | 50,000+ | 60,000+ | 25,000–40,000 |
| Infrastructure | Rapidly improving, Smart City | Well-established | Good, expanding | Varies by city |
| Multilingual Support | English, Hindi, Odia | Tamil, English, Malayalam | Hindi, English, Rajasthani | Regional + English |
| Market Maturity | Emerging with strong growth | Established & mature | Growing rapidly | Varies |
| Best For | Cost-conscious startups & SMEs | South India ops, Tamil support | North India, NCR proximity | Specific regional needs |
Why Bhubaneswar Stands Out as an Emerging Hub
Among the five cities analyzed, Bhubaneswar emerges as a particularly compelling choice for businesses looking to establish call center operations, especially for startups and cost-conscious enterprises. Here’s why:
- Unmatched Cost Advantage: At 50-60% lower operational costs compared to metros, Bhubaneswar offers the highest cost savings among tier 2/3 cities. This makes it ideal for businesses looking to maximize ROI while maintaining quality service.
- Rising Innovation Hub: Companies like Venturesathi are pioneering AI-integrated solutions from Bhubaneswar, proving that the city can compete with traditional hubs in terms of technology adoption and service quality.
- First-Mover Advantage: As an emerging market, businesses establishing operations in Bhubaneswar now benefit from less competition for talent, favorable real estate rates, and strong government support as the state positions itself as a BPO destination.
- Infrastructure Momentum: Smart city initiatives, new IT parks, and improved connectivity demonstrate sustained investment in infrastructure, ensuring the city’s continued growth as a BPO hub.
- Quality of Life: Lower cost of living combined with good healthcare, educational facilities, and cultural amenities makes it attractive for attracting and retaining talent long-term.
While Coimbatore offers established infrastructure and Jaipur provides large talent pools, Bhubaneswar represents the future of India’s BPO industry — a city where innovation meets affordability, creating unique opportunities for businesses willing to be early adopters in this rapidly developing market.
The Future of Call Centers is in Tier 2 & Tier 3 Cities
The shift of India’s call center industry toward tier 2 and tier 3 cities is not just a trend — it’s a fundamental transformation driven by economics, talent availability, and technological advancement. With the market share of these cities growing from 11% to 18% in just three years, and projections showing 30-40% annual growth in GCC demand, the momentum is undeniable.
Each of the five cities profiled — Bhubaneswar, Coimbatore, Jaipur, Chandigarh, and Indore — offers distinct advantages:
- Bhubaneswar leads in cost advantage and represents an emerging hub with companies like Venturesathi pioneering innovative solutions
- Coimbatore offers established infrastructure and a strong manufacturing heritage translating to disciplined workforce
- Jaipur provides the largest talent pool with excellent connectivity to NCR
- Chandigarh combines world-class planned infrastructure with high living standards
- Indore leverages its clean city status, IIM presence, and central location
For businesses evaluating where to establish or expand call center operations, the decision depends on specific priorities: cost optimization, talent requirements, infrastructure needs, or regional market focus. However, one thing is clear — tier 2 and tier 3 cities are no longer just alternatives to metro hubs; they are becoming the preferred choice for businesses seeking to balance quality, cost, and scalability.
Related Resources
Learn More About AI in Customer Service:
- The Role of AI in Modern Contact Centers – Explore how AI is reshaping modern contact centers
- 5 Ways You Can Adapt to AI in Contact Centers – Practical steps for implementing AI in your operations
- AI vs. Human Agents in Customer Service: Finding the Right Balance – Understanding when to use AI and when humans are essential
- Will AI Replace BPOs? The Human-AI Hybrid Future of Customer Experience – The future of outsourcing in an AI-driven world
- How AI is Transforming Customer Experience Through Hyper-Personalization – Leveraging AI for personalized customer interactions
