Temple town Madurai is the next BPO hub in the making. CNBC-TV18’s Divya Rajagopal reports that the IT boom is now trickling into smaller towns and cities in southern India.

March to Madurai, that is the Tamil Nadu government's call to the IT companies to promote temple town Madurai as a hot investment destination. Some of the big it names are certainly marching in.

HCL is investing to set up one of its largest facilities, after its Noida plant. Other companies, which are logging into Madurai are Satyam Computers, Honeywell Tech Solutions and Sutherland Global Services.

“The fact that the work culture, low attrition rates and also the availability of educational institutions in these tier II cities is attracting these companies,” said C Chandramouli, IT Secretary, Tamil Nadu.

Madurai contributes close to Rs 7,000 crore revenues to the state.  Other smaller cities are also part of the BPO wave. The Tamil Nadu government is stepping in to promote the trend.

"The small industries policy and the IT policy, which is due to come out, will look at promoting the tier II cities by giving a package of incentives,” said C Chandramouli.

Even as Chennai gets congested with the clutter of IT companies, industry watchers say that it's the time for the IT boom to move to smaller cities.