Global Capability Centres (GCCs) are solidifying India’s role as a key player in global business. The sector grew by 11% from 2019 to 2023, with projections showing a 14% growth rate by 2030. According to the India Brand Equity Foundation (IBEF), India’s GCC market is expected to exceed USD 100 billion by 2030, highlighting how crucial GCCs are to the global economy.

Adapting to Hybrid Work Models

The COVID-19 pandemic forced organisations to adopt remote work to maintain business operations, prompting GCCs to rethink their office structures and shift to flexible, hybrid models. These models blend remote work with in-office collaboration, boosting productivity, creativity, and flexibility.

As businesses move away from long-term leases, the demand for co-working spaces has surged. These spaces offer a cost-effective, adaptable alternative to traditional offices, enabling companies to adjust to changing needs quickly. This demand represents a valuable opportunity for investors in a growing market that values flexibility and scalability.

Driving Cost-Efficiency

A key factor behind the increasing adoption of co-working spaces is cost efficiency. Traditional office arrangements often involve significant upfront investments, including long-term leases, infrastructure development, and ongoing maintenance. These expenses can be particularly burdensome for GCCs, which must optimise resources and scale operations effectively.

Co-working spaces provide a practical solution by eliminating the need for substantial initial investments, enabling businesses to allocate resources more strategically. With flexible office setups, businesses only pay for the space and services they need, which leads to more efficient cost management. This trend offers investors the potential for steady and predictable revenue streams. Co-working spaces support businesses in their growth, making it easier to adjust to market demands without being tied down by the financial constraints of traditional office leases.

Expanding Beyond Major Cities

While Delhi, Bengaluru, Hyderabad, and Mumbai remain the dominant hubs for GCCs, attention is increasingly turning to tier-2 and tier-3 cities such as Jaipur, Visakhapatnam, and Kochi. These emerging cities are becoming attractive alternatives to larger urban centres’ overcrowded real estate markets.

The shift toward these cities is driven by several factors, including access to affordable talent, improving infrastructure, and government incentives. Initiatives like “Startup India” and “Digital India” are helping to create a favourable environment for businesses to establish themselves in smaller cities. As a result, these regions are becoming more appealing to global companies looking to expand their operations outside the metro cities. Industry projections suggest that by 2030, over 115 new GCCs could be launched annually in India, particularly in tier-2 cities. This growth presents ample opportunities for co-working spaces to cater to businesses looking to set up operations in these developing regions.

Modern Technology

As the business world digitises, integrating technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), and machine learning has become increasingly essential. GCCs are adopting these technologies to improve efficiency, drive innovation, and remain competitive in the fast-evolving market.

Co-working spaces are aligning with this trend by offering advanced technological infrastructure. These spaces now include AI-driven collaboration platforms, smart energy management systems, high-speed internet, and advanced security features. These technological capabilities ensure businesses can operate seamlessly and securely in an interconnected, dynamic environment. 

Sustainability and Social Responsibility

Sustainability is becoming a central focus for businesses worldwide, and GCCs are no exception. Many organisations increasingly integrate Environmental, Social, and Governance (ESG) goals into their operational strategies. Co-working spaces are responding by prioritising eco-friendly designs and energy-efficient practices.

Many co-working operators are designing their spaces with sustainability, incorporating energy-saving systems, using sustainable materials in construction and office consumables, minimising waste. As more companies place importance on sustainability, co-working spaces are becoming essential to a business’s ability to meet its environmental and social commitments.

Tailored Office Solutions

Managed office spaces (MOS) are gaining traction as a strategic choice for many GCCs. These spaces allow businesses to customise their office environments while ensuring all necessary services are available. Onward Workspaces sets benchmarks by offering tailored, fully operational office spaces to prioritise productivity and innovation.

Managed office spaces simplify the office management process, taking care of everything from leasing to daily operations. This allows businesses to focus on what matters most—growth and innovation. As the demand for tailored office solutions increases, co-working spaces become increasingly specialised, offering businesses the flexibility to tailor interiors that align with one’s specific needs.

The growth of GCCs in India and the rising demand for flexible co-working spaces show how businesses evolve. Companies are increasingly looking for cost-effective and adaptable office solutions, and this trend is likely to keep growing. It’s creating a lot of opportunities for both investors and businesses. As the need for more flexible workspaces continues, it’s clear that this shift will shape how companies operate.