NEWS – Bengaluru continues to dominate as the preferred location for global capability centres (GCCs).

• Hosts close to 300 Forbes Global 2000 companies.
• Employs around 5,60,000 professionals, as per ANSR’s Q3 report for October-December.

HIGHLIGHTS

Overview of GCCs

• GCCs are independent but fully owned subsidiaries of multinational companies.
• Key functions: Data, R&D, and product innovation.

Competitors to Bengaluru

• Hyderabad: Another top destination for GCCs.
• Chennai: A strong competitor due to its growing talent pool.

Industry Trends Driving GCC Growth

• Banking, Financial Services, and Insurance (BFSI): A major growth driver.
• Other growing sectors: Retail, healthcare, travel, and transportation.
• Increased focus on emerging technologies such as analytics, AI, cybersecurity, and IT operations.

Employment and Expansion

• By 2030, GCCs in India could employ nearly 2 million professionals.
• In 2024, over 450 Forbes Global 2000 companies established GCCs in India, employing over 1.3 million professionals.
• Significant interest in tier-2 cities for expansion.

Infrastructure Challenges

• Talent availability remains the top priority for GCCs.
• Affordable and quality infrastructure is critical for operations.
• Issues like poor public infrastructure and connectivity remain concerns in Indian cities.
  • Example: Logistics of travel is key for talent retention.

Real Estate Insights

• GCCs leased over 8.2 million square feet of office space in Q3 2024.
• Bengaluru accounted for 55% of Grade-A office space demand in the city.

Geographic Origin of GCC Companies

• Most GCCs in India come from North America, followed by Europe and Japan.
• Increasing interest from Middle Eastern companies, especially UAE and Saudi Arabia.