Commercial
The Rise of GCCs in India: Why Companies Are Choosing Bangalore, Hyderabad & Chennai
April 22, 2025
Why Are Global Companies Rushing to Set Up GCCs in India?
India's Global Capability Centers (GCCs) sector is experiencing exponential growth. As of 2024, more than 1,500 GCCs functioned in India. This figure is expected to rise to 2,000+ by 2026, helping India's $36 billion GCC market grow further.
So why are Bangalore, Hyderabad and Chennai emerging as the undisputed front-runners in this GCC growth story?
The solution lies in cost benefits, highly skilled talent, world-class commercial property and robust government backing. These cities offer Grade A office space, SEZs and managed office space, which makes them the optimal towns for GCCs in India.
This blog delves into why these cities propel GCC real estate demand in India and how they define the future of global business operations.
Why is India The Ideal Destination for GCCs?
Low-cost advantages, an unlimited talent pool, world-class facilities and strong government encouragement are fueling the growth of GCCs in India at a frenetic pace. Consequently, GCC expansion in Bangalore, Hyderabad and Chennai still rules the market and cities such as Pune, NCR, and Coimbatore are also finding demand to increase.
1. Cost Efficiency & Operational Savings
India provides 40-50% cost savings compared to Western markets, making it an attractive location for companies looking to optimise expenses. Businesses benefit from:
- Lower labour costs compared to the US and Europe.
- Affordable rentals, with Grade A office space options in Bangalore, Hyderabad and Chennai.
- Tax incentives and SEZ benefits that further reduce operational costs.
2. Access to a Large, Skilled Talent Pool
India produces over 2.5 million STEM graduates annually, providing a steady supply of highly skilled professionals. Key advantages include:
- Tech & AI expertise: India leads in software development, AI and fintech innovation.
- Multilingual workforce: Essential for customer support and global operations.
- Strong domain expertise: BFSI, IT, R&D, and healthcare companies find India ideal for knowledge-intensive operations.
3. Business-Friendly Policies & Government Support
The Indian government actively promotes GCC expansion through:
- Relaxed FDI policies that allow foreign companies to invest with ease.
- SEZ benefits, including tax exemptions and reduced compliance burdens.
- Digital transformation initiatives, making business processes seamless for global firms.
4. Robust Infrastructure & Office Space Availability
India offers a diverse range of commercial real estate options, from Grade A office space in Bangalore to managed office spaces in Hyderabad. The availability of:
- Premium SEZs and IT parks are available in all major cities.
- Smart office solutions and green buildings, meeting sustainability goals.
- Metro expansions and improved connectivity, thereby reducing commute times for employees.
5. Diverse Industry Presence & Innovation Hubs
India is home to GCCs across various industries, including:
- BFSI (Goldman Sachs, JP Morgan, CitiBank)
- IT & AI (Google, Microsoft, Amazon)
- Pharma & Healthcare (Novartis, Pfizer, AstraZeneca)
With India’s GCC real estate demand skyrocketing, companies are finding Bangalore, Hyderabad and Chennai the best cities for GCCs in India. These cities offer a mix of cost benefits, skilled talent and future-ready office spaces.
Where are GCCs Expanding the Most in India?
| City | Key GCC Sectors | Office Space Advantage |
|---|---|---|
| Bangalore | IT, AI/ML, BFSI, Fintech | High-quality SEZ & Grade A office spaces |
| Hyderabad | IT, Aerospace, Pharma, BFSI | Cost-competitive leasing & business parks |
| Chennai | BFSI, IT, R&D, Manufacturing | Affordable premium office spaces |
Why GCCs Prefer Bangalore, Hyderabad & Chennai for Office Spaces
Over 50% of Global Capability Centers in India are concentrated in Bangalore, Hyderabad and Chennai, which have solidified their position as the most sought-after locations for global businesses. With landmark developments and business parks across these cities, Brigade is uniquely positioned to meet the growing demand — offering scalable, smart and sustainable office solutions tailored for GCCs.
Bangalore: The Leading GCC Destination
Bangalore, often called India’s Silicon Valley, hosts 40% + of India’s GCCs, making it the largest GCC hub in the country. The city’s robust IT infrastructure, global connectivity and innovation-driven ecosystem make it the top choice for companies like Google, Amazon, Goldman Sachs and SAP.
- Key Business Districts: Whitefield, Outer Ring Road (ORR), Manyata Tech Park, Embassy TechVillage
- Office Space Availability: Bangalore offers Grade A office space in Bangalore, along with SEZ office options designed for GCC operations.
- Talent & Connectivity: With a skilled workforce and metro expansion, Bangalore remains the go-to city for AI, fintech and IT-driven GCCs.
Brigade’s commercial portfolio in Bangalore spans premium tech parks, SEZs, and custom-built campuses in ORR and Whitefield, enabling global businesses to access plug-and-play spaces, sustainable infrastructure, and future-ready designs.
Hyderabad: The Fastest-Growing GCC Hub
Hyderabad is emerging as the second-largest GCC destination in India, with over 150+ global firms setting up operations. The city’s lower rental costs, business-friendly policies and IT-driven growth have made it a magnet for GCCs.
- Business Districts Driving Growth: HITEC City, Gachibowli, Financial District.
- Cost-Competitive Real Estate: Office rentals in Hyderabad are 20-30% lower than in Bangalore, making it an attractive choice for expansion.
- Managed Office Spaces in Hyderabad: Many GCCs choose flexible and managed office spaces to optimise costs and scalability.
- Government Initiatives & Infrastructure Boom: T-Hub, fintech clusters and aerospace parks have driven high-value investments.
Brigade’s commercial assets in Hyderabad offer customisable office floors, flexible leasing models, and smart workplace solutions —ideal for fast-scaling GCCs looking to balance cost and quality. Strategic developments by Brigade in Gachibowli and Financial District align perfectly with GCC demand for high-performance, collaborative workspaces.
Chennai: The GCC Hub for BFSI & IT
The capital of Tamil Nadu is a strategic GCC location for BFSI, IT, and R&D companies. The commercial spaces in Chennai offer strong infrastructure and port connectivity making it a preferred GCC hub for companies like BNY Mellon, Ford and Barclays.
- Prime Office Locations: OMR IT Corridor, Guindy, Tidel Park.
- Diverse Industry Base: Chennai is home to BFSI, IT, automotive R&D and AI-driven GCCs.
- Port Connectivity & Affordable Office Spaces: The city’s logistics and lower rental costs provide a strategic advantage for global firms.
Brigade’s projects in Chennai provide future-ready office spaces tailored to financial services and technology firms. With a strong presence in the OMR corridor and Guindy, Brigade offers built-to-suit and managed workspace solutions designed to meet both current and evolving needs of global enterprises.
Key Factors Driving Office Space Demand from GCCs
- Preference for Grade A & SEZ Office Spaces: GCCs require state-of-the-art office spaces with advanced infrastructure, sustainability features and innovative workplace solutions. Grade A office spaces in Bangalore, Hyderabad and Chennai cater to this demand.
- The Shift to Managed & Flexible Office Spaces: With the rise of hybrid work models, GCCs are increasingly opting for managed office spaces in Hyderabad and other cities to ensure flexibility and cost-efficiency.
- Leasing vs. Built-to-Suit (BTS) Models for GCCs:
| Model | Advantages | Best for |
|---|---|---|
| Leasing | Ready-to-move spaces, short-term commitment | New entrants & expanding GCCs |
| Built-to-Suit (BTS) | Custom-designed, long-term occupancy | Established GCC planning expansion |
- ESG & Sustainability in Commercial Real Estate for GCCs: Sustainability is now a top priority for Global Capability Centers in India, increasing demand for green buildings, energy-efficient workspaces and LEED-certified office spaces.
The Future of GCCs in India: What Lies Ahead?
The Global Capability Centers in India are set for rapid expansion, with projections indicating 2,000+ GCCs by 2026. Bangalore, Hyderabad and Chennai will remain the best cities owing to skilled talent, cost-effective operations and advanced office spaces.
Future trends include AI-driven automation, increased demand for managed office spaces in Hyderabad and other tech hubs and sustainable, ESG-compliant workspaces. Tier-2 cities like Pune and Coimbatore are also emerging as new GCC destinations. With rising GCC real estate demand in India, companies are expected to invest heavily in SEZs and Grade A office spaces.
Why India Remains the GCC Destination of Choice
India’s GCC real estate demand continues to surge due to its cost advantages, talent availability and premium office infrastructure. As the GCC wave intensifies, Bangalore, Hyderabad and Chennai continue to lead India’s global business transformation. Backed by cost advantages, future-ready workspaces, and a massive talent ecosystem — these cities, and marquee developers like Brigade, are redefining the global enterprise experience from India.
Sources:
- https://www.ibef.org/blogs/global-capability-centres-gccs-in-india
- https://www.business-standard.com/industry/news/indian-job-market-stays-strong-amid-global-uncertainty-michael-page-india-125041000261_1.html
- https://bangaloremirror.indiatimes.com/bangalore/others/bm-property-bengaluru-leads-indias-gcc-market-with-40-share-job-growth/articleshow/118458681.cms
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