Many IT companies find value in expanding back-end operations in the twin cities as rentals are still much lower than Gurgaon.
Analysts say despite a slight increase in rates over the past two years, office space rentals in Noida and Greater Noida hover between Rs 50 and Rs 55 per sq ft (psf), which are at least Rs 20 psf cheaper than the Millennium City. In comparison, office spaces in Gurgaon command rentals of Rs 70 to Rs 75 psf.
3 Pillar Global, a USA-based IT company, plans to expand its Noida offices from 300 to 450 seats over the next one year.
“Noida is convenient for us. Being a relatively new company, we keep our costs low and in Noida, we get good talent and adequate space to do our work. We are looking at a 50% increase in the workforce over the next 12 months, all in Noida,” Maria C Izurieta, CFO, 3 Pillar Global, told TOI.
In another instance, a tech-based customer relationship management (CRM) company, SalezShark, has shifted its corporate office from Gurgaon to Noida recently, because of low rentals and cheaper input costs.