GCC Expansion Gains Momentum in Tier-2 Cities as Enterprises Look Beyond MetrosGCC Expansion Gains Momentum In Tier-2 Cities As Enterprises Look Beyond Metros

 India’s Global Capability Centre (GCC) landscape is increasingly expanding beyond traditional metropolitan hubs, with several Tier-2 cities attracting growing interest from multinational corporations.  

Cities such as Navi Mumbai, Coimbatore, Bhubaneswar and Lucknow are witnessing higher levels of GCC activity as companies diversify their operations and tap into new talent markets. 

The trend reflects a broader shift towards geographically distributed business models that balance cost efficiency with access to skilled professionals. 

More Than 220 GCCs Operating Across Emerging Cities 

According to a report by GCC consulting firm ANSR, over 220 of India’s nearly 1,900 GCCs are currently located in Tier-2 cities.  

These centres collectively employ around 86,000 professionals and continue to attract new investments from global enterprises. 

The report estimates that the number of GCCs in these emerging locations is growing at a compound annual growth rate (CAGR) of 11%, supported by policy measures aimed at creating business-ready ecosystems outside major metropolitan regions. 

One of the key drivers has been the national guidance framework announced in the Union Budget 2025, which seeks to promote GCC development across a wider set of cities through coordinated policy support. 

Talent Availability and Cost Advantages Driving GrowthTalent Availability And Cost Advantages Driving Growth 

Access to a large pool of science, technology, engineering and mathematics (STEM) graduates remains a major attraction for companies evaluating Tier-2 destinations.  

ANSR noted that job openings in these cities are rising rapidly, recording an annual increase of about 44%. 

At the same time, businesses benefit from lower hiring costs, with talent acquisition expenses estimated to be 20–30% below those in established metropolitan markets. 

Real estate economics also remain favourable. Premium office space rentals in these cities are generally 25–30% lower than comparable Grade A office properties in Tier-1 locations, helping organisations optimise operating costs while expanding capacity. 

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Conclusion 

The continued rise of GCCs in Tier-2 cities highlights a structural shift in India’s business services landscape. Supported by policy initiatives, a growing talent base, lower operating costs and advancements in AI, emerging cities are becoming an increasingly important part of global enterprises’ expansion strategies. 

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