Over the last two decades, India’s position in the global business landscape has undergone a fundamental shift. What began as a low-cost support model has now transformed into a strategic growth engine. At the heart of this transition lies Global Capability Centres (GCCs)—sophisticated offshore units set up by multinational companies to deliver critical business and technology functions.
As we approach 2030, India’s GCC ecosystem is not just growing—it is maturing, deepening, and leading. Let’s explore how we got here, where we’re headed, and what makes India the epicenter of this global transformation.
From BPOs to GICs to GCCs: India’s Strategic Evolution
India’s enterprise services landscape has evolved through three distinct phases, each marking a leap in strategic value and global relevance.
In the early 2000s, India emerged as a preferred destination for Business Process Outsourcing (BPO), driven by cost arbitrage and a large English-speaking workforce. These centers primarily focused on backend support, customer service, and basic IT maintenance.
Between 2005 and 2012, the next wave saw the rise of Global In-house Centres (GICs)—units that began taking full ownership of critical business functions such as product lifecycles, finance, analytics, and R&D. These centers delivered greater depth, operational efficiency, and business continuity for their global parents.
Post-2012, GICs evolved into Global Capability Centres (GCCs), taking on a more strategic and innovation-led role. Today’s GCCs contribute directly to revenue generation, product innovation, digital transformation, and enterprise-wide decision-making. No longer just supporting arms, they have matured into Centers of Excellence (CoEs) that anchor long-term value.
As GCCs have evolved, so too have their priorities. India’s GCCs are now central to business continuity, innovation, and global strategy. This shift is evident across four key dimensions:
- From Cost Center to Profit Center: GCCs now service external clients and generate revenue directly.
- From Delivery to Innovation: Many now house CoEs for AI, cybersecurity, data engineering, and product development.
- From Single Function to Multi-Function: Capabilities have expanded into legal, marketing, procurement, HR, and sustainability.
From India-Focused to Global Roles: An increasing number of global leadership and P&L responsibilities now reside within Indian GCCs.
What’s Fueling the GCC Surge in India?
1. Access to High-Quality Talent
India continues to produce the world’s largest pool of STEM graduates. With deep expertise in IT, analytics, product development, and engineering, Indian professionals now lead global functions—not just execute them.
2. Cost Efficiency with Value Addition
While rising wages are narrowing the cost gap, India still offers a significant advantage—up to 30–40% savings compared to developed markets. And now, value creation—not just savings—is a primary driver.
3. Supportive Government and Policy Ecosystem
Favorable FDI policies, state incentives, and digital public infrastructure have created an enabling environment for GCC growth.
4. Mature Startup Ecosystem and Tech Collaboration
GCCs are increasingly co-innovating with Indian startups—accelerating go-to-market capabilities, fostering IP creation, and enabling faster tech adoption.
The Rise of Tier-II Cities: The New Frontier
While Bangalore, Hyderabad, Pune, and Chennai remain GCC strongholds, there is a clear shift toward Tier-II locations:
- Emerging Hubs: Visakhapatnam, Jaipur, Vadodara, Kochi, Chandigarh, and Coimbatore
- Key Advantages: Lower real estate costs, improved infrastructure, and access to untapped talent pools
Government Push: State governments are offering land, training incentives, and plug-and-play workspaces to attract new centers
What Does This Mean for Commercial Real Estate Investment?
This GCC momentum will have far-reaching consequences for
1. Expanding Office Demand = Long-Term Asset Growth
With over 800–900 new GCCs expected to be set up in the next 6 years, demand for high-quality commercial office space—especially in emerging micro-markets and Tier-II cities—is set to surge. Early investments in these corridors can yield stable cash flows and long-term capital appreciation.
2. Flight to Quality = Preference for Grade-A Assets
As GCCs evolve into strategic, innovation-led centers, occupiers will seek premium Grade-A spaces that offer integrated\ infrastructure, ESG compliance, and scalability. Investors who back such assets can expect stronger yields and leasing stability.
3. Diversification Across Cities
From Coimbatore to Visakhapatnam, the rise of new GCC cities offers an opportunity to diversify portfolios geographically, tap into favorable local policies, and benefit from lower acquisition costs while maintaining high tenant demand.
4. Partnering with Occupiers Early
Forward-thinking real estate firms can unlock higher IRRs by partnering early with occupiers, offering built-to-suit or co-investment models for anchor GCC tenants—enhancing stickiness and reducing vacancy risk.
Conclusion:
GCCs are not just transforming how global businesses operate—they are also reshaping where and why they choose to grow. As demand surges for office spaces that match the aspirations of global enterprises, commercial real estate stands to be one of the biggest beneficiaries.
For investors, now is the time to align with India’s GCC boom—not just to ride a trend, but to be part of a structural, long-term growth story that spans talent, technology, and transformation.