Bengaluru: India’s Global Capability Centre (GCC) ecosystem is entering a new phase of scale and sophistication, a trend that is set to significantly reshape the country’s IT services landscape and deepen demand for Grade A offices across major cities.
According to a government note, GCC revenues have jumped from $40.4 billion in FY19 to $64.6 billion in FY24, reflecting an annual growth rate of nearly 10% as multinationals shift high-value work to India.
“India now hosts over 1,700 GCCs, many of which have moved far beyond their original back-office roles to become innovation, engineering and R&D hubs. These centres support advanced functions in cloud, AI, aerospace, defence systems, semiconductors and digital engineering, marking a decisive shift in India’s IT economy from services to capability-led value creation,” it said.
This transformation has direct implications for India’s technology labour market and the office real estate sector. GCCs currently employ 1.9 million professionals, a number expected to rise to 2.8 million by 2030 as India’s prominence in global talent supply intensifies. The government estimates the GCC ecosystem could reach a $105 billion market size by the end of the decade.
On the office real estate front, the sector is already feeling the ripple effects. GCCs are emerging as the single-largest occupier category in India’s commercial office market, driving large-block leasing, campus expansions and sustainability-led workspace investments across Bengaluru, Hyderabad, Pune, Chennai, Mumbai and NCR.
The shift is being powered by strong policy tailwinds. Government schemes such as Modified Electronics Manufacturing Clusters (GENESIS), innovation incentives, digital-skilling programmes like FutureSkills Prime, and simplified clearances under state and central ease-of-business reforms are helping global firms scale faster. Liberalised FDI norms and refreshed SEZ frameworks are further accelerating GCC entry and expansion. Industry executives say this momentum is set to further boost office absorption and reinforce India’s dominance in global tech operations.
“Green infrastructure, hybrid work models and strategic location choices will characterize the next wave of GCC expansion. In India, GCC real estate is no longer just treated as a cost, but as an investment to help businesses attract talent and innovate,” said Arvind Nandan, Managing Director, Research and Consulting, Savills India.
Analysts expect this shift to translate into stronger leasing momentum in 2025.
“Global Capability Centers have emerged as major growth drivers for the real estate sector in India and are expected to account for 35% to 40% of the total office leasing in 2025. The country offers one of the largest and smartest pools of tech, BFSI, and engineering & manufacturing talent, and provides cost-efficiency and a mature operational ecosystem for MNCs with a growing office-first approach.
In 2025, GCCs accounted for ~55% of large deals over 100,000 sq ft, reaffirming global corporations’ long-term expansion plans and focus on scale,” said Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE.
With robust talent availability, rising digital infrastructure, and expanding demand for high-value capabilities, GCC-led growth is set to play a defining role in India’s IT upgradation and office leasing cycle through the next decade.
Source Name : Economic Times