Global Capability Centres (GCCs) have evolved from back-office support hubs into strategic engines of digital transformation and innovation for multinational corporations (MNCs). India, due to its large talent pool, competitive cost base, and strengthening Tier 2 infrastructure, has emerged as a key hub in this global network. With over 1,700 active GCCs and projections to surpass 2,100 by 2030, the market is growing at an accelerated pace.

This surge has driven real estate leaders to rethink how space is consumed, optimized, and scaled. Increasingly, flexible workspaces—once associated primarily with startups—are becoming integral to GCC expansion strategies, enabling agility, reducing CAPEX, and aligning with hybrid work expectations.

Why GCCs Prefer Flexible Workspaces

1. Scalability and Speed to Market

GCCs often face mandates to scale headcount by hundreds within weeks—whether for a product rollout, client onboarding, or digital lab setup. Traditional offices, with lease cycles spanning 9–12 months from signing to occupation, can delay execution.

Flexible workspaces allow:

• Immediate availability in high-quality, Grade A environments
• Lease tenures as short as 6 months
• Multi-city deployment, helping tap into diverse labour markets simultaneously

This model reduces time-to-productivity and allows firms to stay nimble in rapidly evolving global landscapes.

2. Operational & Capital Efficiency

Real estate is often the second-largest fixed cost on a GCC’s P&L. Traditional office setups involve:

• Heavy CAPEX for fit-outs, tech, and furniture
• Multi-year lease liabilities and maintenance costs

Flex models eliminate this. Operators provide:

• Fully managed spaces with enterprise-grade IT and security
• Shared resources like meeting rooms, breakout zones, and F&B
• Predictable OPEX, enabling CFOs to better manage cost volatility

This model supports both greenfield GCCs and those transitioning to hub-and-spoke formats from core campuses.

3. Talent Engagement & Hybrid Readiness

GCCs compete not just with domestic employers but with global firms for top talent. Workplace experience is a differentiator.

Flexible workspaces help by:

• Offering locations closer to residential zones (especially in Tier 2 cities)
• Supporting 3–2 hybrid work without diluting culture
• Enhancing wellness through ergonomic layouts, event programming, and community

A 2023 Nasscom study indicated that over 70% of GCC employees prefer hybrid work models, and over 60% cited proximity to home as a factor influencing job preference.

Statistical Insights

• India’s flexible office stock is projected to grow from 61 million sq. ft. (2023) to 125 million sq. ft. by 2027
• GCCs are expected to lease 45–50 million sq. ft. of office space between 2023 and 2025, constituting over 42% of all Grade A demand in India
• Flex office penetration among enterprise tenants in India rose from 9% in 2020 to 14% in 2024 and is projected to cross 20% by 2026

Case Studies

Thryve Digital – Healthcare GCC Scaling in Chennai

Thryve Digital, a healthcare services firm, expanded in 2024 by adding 73,000 sq. ft. of flexible space to its existing 250,000 sq. ft. setup in Chennai’s IT corridor. This enabled the hiring of over 1,000 professionals to support a surge in digital health projects.

Arctic Wolf – Security-first Workspace in Bengaluru

Cybersecurity firm Arctic Wolf launched its Indian GCC in 2023 at a flexible office hub in Bengaluru. Though square footage is undisclosed, sources indicate a 100–300 seat scalable footprint, built with rapid ramp-up in mind.

Regional Trends in GCC Expansion

Tier 2 City Momentum

The rising cost of Grade A spaces in metros like Bengaluru and Mumbai is driving GCCs to Tier 2 hubs such as:

• Coimbatore, Jaipur, Visakhapatnam, and Indore
• These cities offer 20–30% lower operating costs and improved retention rates
• Flex operators are increasingly entering these markets, attracted by pre-commitments from tech and fintech GCCs

According to JLL India, 30% of upcoming GCC expansions in 2025–26 are expected to be in non-metro cities.

Vertical-wise Expansion Patterns

Certain sectors are leading the GCC expansion into flex spaces:

• BFSI & Insurance: Using flexible space to pilot analytics and AI pods
• Healthcare & Life Sciences: Adopting spoke models for clinical ops and documentation centers
• Cybersecurity & Fintech: Choosing coworking setups that allow quick hiring in new locations

A CBRE report notes that over 60% of new GCCs in 2023–24 from these verticals started with flex or hybrid leases.

Policy Push & Infrastructure Development

State governments in Tamil Nadu, Karnataka, and Telangana have introduced GCC-focused incentives, such as:

• Rental subsidies for initial setup
• Single-window approvals
• Talent-linked incentives (e.g., in Hyderabad’s Genome Valley and Chennai’s SIPCOT zones)

These policies are catalyzing demand for ready-to-use flex formats near SEZ zones or integrated tech parks.

Real Estate Market Impact

Flexible workspace providers have transformed from fringe players to core components of CRE strategy:

• Occupier-driven demand now shapes location, pricing, and configuration decisions
• Flex players are offering enterprise-specific customizations, enabling GCCs to maintain brand and privacy in shared environments
• Brokerage houses are integrating flex portfolios into their advisory stacks, helping occupiers blend core and flex footprints seamlessly

Emerging Deal Structures in Flex Leasing

As GCCs mature and the demand for customized workspace models grows, the nature of deal-making in flex office leasing is also evolving. Traditional per-seat rental models are being supplemented by:

• Revenue-sharing agreements between enterprise clients and operators
• Long-term anchor commitments with fit-out flexibility
• Hybrid contracts combining fixed and on-demand space

These structures provide better alignment between cost, occupancy, and business cycles—particularly valuable to large-scale GCCs managing global service mandates. CBRE and Colliers have reported that nearly 35% of enterprise flex leasing deals in 2024 included at least one hybrid clause or profit-linked incentive.

Flex Operator Growth and Investment Trends

India’s top five flex operators—WeWork India, Smartworks, Awfis, 91Springboard, and IndiQube—collectively managed over 55 million sq. ft. of inventory by the end of 2023. Private equity and REIT investors are increasing capital allocation toward flex operators, with transaction volumes crossing ₹2,000 crore in FY24.

According to Knight Frank India, demand from GCCs now contributes over 30% of operator revenue in cities like Hyderabad, Pune, and Chennai. As investors back capacity expansion, operators are launching “enterprise-only” centers in tech corridors and even SEZ demarcated buildings.

Conclusion

The integration of flexible workspaces into the strategic playbooks of GCCs is not a convenience—it’s a competitive advantage. By optimizing for agility, speed, cost, and talent, this shift marks a permanent evolution in how large enterprises consume commercial real estate.

GCCs that adopt a “core + flex + spoke” workspace model are not only navigating today’s complex demands—they’re building durable, scalable, and human-centered workplaces fit for the next decade of global growth