GCCs Find New Hubs in Emerging Indian Cities
Emerging cities such as Indore, Coimbatore, Thiruvananthapuram, and others are becoming key hubs for GCCs, driven by lower operational costs and access to a diverse, skilled talent pool.
Global Capability Centres (GCCs) are expanding their footprint in emerging Indian cities, marking a strategic shift in the country’s economic landscape. Cities such as Chandigarh, Jaipur, Lucknow, Coimbatore, Kochi, Thiruvananthapuram, Visakhapatnam, Ahmedabad, Indore, and Bhubaneswar are becoming attractive destinations for GCCs.
The key drivers of GCC expansion include cost efficiency, as emerging cities offer lower operational costs, enabling companies to optimise resource allocation, as well as access to a talent pool, with growing local educational institutions providing diverse and skilled professionals, according to a Nasscom community note by real estate consulting and research firm CBRE.
Infrastructure development is also a key factor, with rapidly improving connectivity and digital infrastructure supporting seamless operations. Additionally, government initiatives and supportive policies are attracting investments from the GCC. Furthermore, the appealing quality of life in emerging cities is a significant draw for professionals.
The impact of GCCs on emerging cities is multifaceted, creating new career opportunities for local residents, contributing to economic growth, and promoting sustainable development. With over 1,700 GCCs currently operational in India, employing approximately 1.9 million professionals, the sector’s influence is substantial.
Projections indicate a robust trajectory, with the Indian GCC market anticipated to surpass US$100 billion by 2030, supported by around 2,400 GCCs employing over 2.8 million people, and generating around $35 billion in annual revenue. Cities such as Chandigarh, attracting IT and R&D with its high quality of life, Jaipur, becoming a hub for back-office and customer support, and Lucknow, leveraging its growing talent pool for BFSI and IT services, are leading the charge.
Other cities are also experiencing significant growth. Ahmedabad is expanding across finance, IT and consulting. Indore is emerging as a rising hub for IT-BPO services, while Bhubaneswar is attracting investment in software development and research. Coimbatore is evolving as a center for manufacturing and tech-driven GCCs. Kochi is proving ideal for GCCs in the logistics and supply chain. Thiruvananthapuram is also attracting software development and research and Visakhapatnam is growing in the engineering and manufacturing sectors, especially for GCCs.
Overall, the rise of GCCs in emerging Indian cities signifies a transformative phase in the nation’s economic journey, with this strategic decentralisation not only easing developmental pressure on tier-I metropolises but also fostering more balanced and inclusive regional growth, creating new opportunities and career pathways across the country.
