Premium office spaces in Bengaluru, Hyderabad, and Delhi NCR continue to attract the bulk of GCC investment, according to NTT DATA’s latest report. While Tier II cities gain traction due to cost and talent advantages, challenges around infrastructure, skilled talent, and AI readiness remain key factors shaping India’s evolving GCC ecosystem.
India’s leading technology hubs—Bengaluru, Hyderabad, and Delhi NCR—continue to dominate investment in premium office spaces, particularly for Global Capability Centres (GCCs), according to a new report by Tokyo-headquartered IT services firm NTT DATA. The findings were published in the India Global Capability Centre (GCC) Innovation Transformation Report 2025, released in collaboration with tech industry platform The Mainstream.
The report highlights that established markets remain the preferred choice for global firms seeking high-quality, Grade A office infrastructure, strong connectivity, and deep talent pools. These cities continue to anchor India’s GCC growth, even as companies gradually explore newer geographies for expansion.
Premium Offices and the Rise of Integrated Tech Clusters
Beyond office demand, the report points to a growing preference for amenity-rich residential developments near technology hubs. As GCCs expand and mature, employee experience has become a key consideration, driving demand for integrated ecosystems that combine workspaces, housing, and lifestyle infrastructure.
India is now home to more than 1,900 GCCs, with steady additions continuing into 2025. The first quarter of the year alone saw more than 16 new GCCs being added. Growth was particularly strong between FY19 and FY24, a period during which over 400 new GCCs entered the Indian market, reinforcing the country’s position as a global hub for innovation and delivery.
Expansion Beyond Metros Gains Momentum
While Tier I cities remain dominant, the report notes a clear shift toward Tier II and Tier III locations such as Kochi, Coimbatore, and Jaipur. Together, these emerging markets already host more than 190 GCCs. Companies are increasingly drawn to these cities due to lower operational costs, less saturated talent markets, and improved quality of life for employees.
However, the report also flags that infrastructure quality remains a critical differentiator. While Tier I cities benefit from mature transport, office stock, and social infrastructure, Tier II locations still face gaps that could slow large-scale adoption unless addressed through focused investment and policy support.
Talent Scarcity and AI Readiness Emerge as Key Challenges
Despite strong growth, talent availability remains a pressing concern. According to the report, 42% of GCCs surveyed identified the scarcity of seasoned talent, driven by intense competition from higher-paying technology firms, as a major challenge. The issue is particularly acute in Tier II cities, where talent depth is still developing.
“Securing high-calibre talent in tier II cities remains a significant hurdle,” the report stated, while also highlighting AI readiness and cybersecurity threats as critical growth challenges. The findings suggest that talent strategy and digital resilience are becoming just as important as real estate decisions.
Innovation Depends on Skills and Data Foundations
The report draws a strong link between technology investment, talent upskilling, and long-term innovation outcomes. Avinash Joshi, Executive Managing Director, India, NTT DATA, noted that “there is a clear indication that places with tech investments and talent upskilling are the first to become innovation hubs.”
Interestingly, only 22% of organisations surveyed reported measurable outcomes from their current AI deployments. This signals that simply adopting AI tools is not enough—strong data foundations, governance, and skilled teams are essential to unlock real value.
What This Means for India’s Office and Flex Space Market
For developers, investors, and flexible workspace operators, the message is clear. Premium office assets in established hubs will continue to see strong demand from GCCs, while emerging cities represent a long-term opportunity that requires careful planning. As GCCs evolve from cost centres to innovation engines, the quality of workspace, access to talent, and digital readiness will define where the next wave of growth takes shape.
