IT/ITeS sector leads GCC spread in India
Global Capability Centres estimated to reach 26mn sft by 2027 from 19.69mn sft in 2023: Knight Frank India
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As India solidifies its position as a cornerstone of global GCC networks, these centres emerge as unparalleled hubs of creativity and collaboration - Shishir Baijal, CMD, Knight Frank India
Future of GCCs
- GCC number may reach 1,900 by 2025
- Employing 2 mn people
- During 2018-23, around 5,349 GCC-focused office deals done
Bengaluru: Driven by India’s potential to enhance processes amid improved business sentiments, Global Capability Centres (GCCs) are estimated to reach 26 million square feet by 2027, up from 19.69mn sft in 2023, a report showed on Thursday.
Transaction activities have increased by 16 per cent from 16.99mn sft in 2018 with GCCs completing 6,667 office leasing deals across eight major cities between 2018 and 2023, according to the report by Knight Frank India. IT/ITeS sector GCCs lead the chart, followed by the BFSI and Consulting GCCs.
The growth of GCCs highlights India’s potential to enhance processes and drive business innovation. Between 2018 and 2023, around 5,349 GCC-focused office deals were finalised under 50,000 sqft across the eight cities.
“The future of GCCs in India is promising, with projections showing over 1,900 centers by 2025, employing around 2 million people,” said Sameer Dhanrajani, CEO, 3Ai.
India remains a key hub for GCCs, alongside other destinations such as the US, Latin America, China, Europe, and the Asia Pacific (APAC) region. India, the US, and China stand out for their ease of hiring talent. Conversely, India, and the APAC region are noted for lower operational costs compared to global averages. Therefore, multinational corporations worldwide, increasingly view India as a preferred destination for establishing or expanding operations, with US companies at the forefront of this trend, the report said.
In India, Mumbai leads with the highest percentage of GCCs under the BFSI sector and Bengaluru leads with the highest percentage of GCCs in the IT/ITeS sector. Around 80 per cent of the GCCs in India are currently servicing international facing clients, said the report.
“India’s GDP growth continues to be the fastest among major economies in the world, attracting attention for its strong infrastructure, and a consistent influx of top-tier talent and corporate entities,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
In the dynamic landscape of global business, India’s GCCs have evolved beyond traditional roles to become pivotal hubs of global strategy and local ingenuity.
“As India solidifies its position as a cornerstone of global GCC networks, these centres emerge as unparalleled hubs of creativity and collaboration,” said Baijal.
