Firms lease 53mn sq ft office space since 2022 to set up GCCs in 6 cities

Leading global companies have taken on lease nearly 53 million square feet of office space since 2022 across six major cities to set up Global Capability Centres (GCCs) with maximum demand in Bengaluru, according to CBRE and Zyoin.

In their joint report, property consultant CBRE and hiring solutions firm Zyoin highlighted that GCCs have significantly amplified their Indian operations over recent decades, propelled by a skilled workforce, cost efficiency, and a conducive business climate.

This GCC growth trajectory is anticipated to be concentrated in India's top six metropolitan areas, driven by their exceptional talent pools, enabling expansion and future development.

"Global corporations are affirming their long-term commitment to India by securing larger office spaces for their GCCs," the consultant said.

Nearly 53 million square feet of office space was leased by GCCs between 2022 and the first half of 2024 across Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR and Mumbai.

Out of these six cities, the share of Bengaluru in the total leasing for GCCs stood at 40 per cent, followed by Hyderabad at 21 per cent and Chennai at 14 per cent.

The report mentioned that Bengaluru reigns supreme as the GCC epicentre, fortified by a dominant talent pool, a mature technology ecosystem, and a thriving start-up landscape.

The city boasts a two-million-strong technology workforce, the largest in India. While technology and BFSI sectors remain the primary demand drivers, retail, aerospace, semiconductor, and life sciences companies are establishing niche GCCs.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE India, said, "Global corporations have transformed their captive centres in India from basic service providers to engines of innovation. GCCs are now driving digital transformation and product excellence, becoming an essential part of any forward-thinking global firm."

A burgeoning array of industries is recognising the potential of Indian talent, establishing their GCC footprint, he added.

"India's abundant tech and non-tech talent pool is increasingly becoming a global solution," Magazine said.

The future promises further diversification as life sciences, automobiles, and aerospace sectors expand their Indian GCC presence, he added.

"With a strategic roadmap for 2024 GCC development, India is poised to spearhead the next wave of globalization," Magazine said.

Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India, said the evolution of GCCs from operational back offices to technology and innovation hubs necessitates a profound workforce skill transformation.

"A surge in demand for digital and machine learning proficiencies, including AI, applied machine learning, data analytics, cybersecurity, blockchain, augmented reality app design, engineering, and UI/UX design, is evident," he said.