By 2027, India’s Global Capacity Centres (GCCs) are expected to expand their office space to 26 million sq ft, driven by a surge in leasing deals and strategic growth in the IT/ITeS and BFSI sectors. This growth not only underlines India’s pivotal role in global business innovation and talent acquisition but also sets a promising trajectory for the future of these sectors.
By 2027, India’s Global Capacity Centres (GCCs) are projected to expand their real estate footprint significantly, growing from 19.69 million square feet in 2023 to an impressive 26 million square feet, according to a recent report by Knight Frank and 3AI. This remarkable growth is fueled by GCCs outpacing traditional IT services in hiring engineers and increasing their leasing activities across major Indian cities.
The Knight Frank and 3AI joint report reveals that between 2018 and 2023, GCCs executed 6,667 leasing deals, marking a 16 per cent increase in transaction activities. This surge highlights India’s critical role in process enhancement and business innovation within the global business landscape. Shishir Baijal, Chairman & Managing Director of Knight Frank India, emphasizes, “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.”
GCCs from the IT/ITeS sectors lead the industry, which is closely followed by the banking, financial services, insurance (BFSI), and consulting sectors. Mumbai dominates in BFSI GCCs, while Bengaluru leads in IT/ITeS GCCs. The future looks promising, with projections indicating over 1,900 GCCs employing around 2 million people by 2025. Sameer Dhanrajani, CEO of 3Ai, notes, “The future of GCCs in India is promising, with projections showing over 1,900 centres by 2025, employing around 2 million people.”
Between 2018 and 2023, 5,349 GCC-focused office deals under 50,000 square feet were finalized across eight cities. Additionally, there were 790 medium-sized deals (50,000-100,000 sq ft) and 528 large deals (above 100,000 sq ft). This significant growth underscores the increasing demand for GCCs in India, particularly in the technology sector, and presents a compelling case for investment. Rahil Gibran, National Director of Occupier Strategy and Solutions at Knight Frank India, highlights, “The development of new GCCs specially catering to the manufacturing sector has increased on a Year-on-Year basis.”
India’s strategic position as a pivotal GCC hub is further underscored in the report, ranking alongside the US, Latin America, China, Europe, and the APAC region. The report states, “India, the US, and China excel in talent acquisition ease, while India and APAC offer cost advantages. This makes India increasingly preferred for multinational corporations, especially US firms, expanding their global operations.”
With India’s GCCs poised for robust growth and innovation, they are set to play critical and influential roles in global operations, particularly in generative AI, customer-centric business development, and as-a-service transformations. The integration of advanced technologies and a focus on sustainability will drive this evolution, solidifying India’s status as a cornerstone of the global GCC network and enhancing its influence in the global business landscape.
