Global Capability Centers (GCCs) in India are rapidly growing, with projections indicating they will occupy 26 million square feet of office space by 2027. A joint report by Knight Frank India reveals that from 2018 to 2023, GCCs completed 6,667 leasing deals across eight major cities, reflecting a 16% increase in transaction activities since 2018. This surge highlights India’s crucial role in enhancing global business processes and fostering innovation.

“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,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India. He emphasised that India is solidifying its position as a cornerstone of global GCC networks, emerging as a hub of creativity and collaboration.

The report underscores that GCCs in the IT/ITeS sector dominate the industry, followed by the Banking, Financial Services, and Insurance (BFSI) and Consulting sectors. Mumbai leads in BFSI GCCs, while Bengaluru is at the forefront for IT/ITeS GCCs. Sameer Dhanrajani, CEO of 3Ai, stated, “The future of GCCs in India is promising, with projections showing over 1,900 centres by 2025, employing around 2 million people.” He highlighted that the focus will be on integrating advanced technologies, driving innovation, and fostering sustainability.

From 2018 to 2023, there were 5,349 GCC-focused office deals under 50,000 square feet, 790 in the medium segment (50,000-100,000 sq ft), and 528 deals above 100,000 sq ft. This trend indicates a growing demand for office spaces tailored to the needs of GCCs. Rahil Gibran, National Director of Occupier Strategy and Solutions at Knight Frank India, noted, “The development of new GCCs catering to the manufacturing sector has increased year-on-year. The talent landscape in the technology sector has evolved to meet the growing demand of new GCCs, thereby supporting their growth in India.”

India is highlighted as a pivotal GCC hub alongside the US, Latin America, China, Europe, and APAC. 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.”

As India’s GCCs continue to grow and evolve, they are set to play critical roles in global operations, particularly in generative AI, customer-centric business development, and as-a-service transformations. This growth underscores India’s strategic importance in the global business landscape, driving innovation and economic development.