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India's GCCs Expand Beyond Metros to Tier-2 Cities
29 Nov
Summary
- GCCs are moving to tier-2 cities due to rising costs in metros.
- Emerging cities offer scalable operations at lower expenses.
- Experienced professionals still prefer established metro ecosystems.
India's Global Capability Centre (GCC) ecosystem is actively expanding beyond its traditional metropolitan hubs, with companies establishing operations in tier-2 cities such as Jaipur, Kochi, and Coimbatore. This strategic diversification is primarily fueled by escalating operational expenses and fierce talent competition within established tier-1 cities. Emerging locations offer scalable business solutions at a significantly reduced cost, making them attractive alternatives for global firms seeking cost-efficiency.
While tier-2 cities provide a steady influx of graduates from local educational institutions, a notable challenge persists: experienced professionals tend to gravitate towards the more robust networks and deeper professional ecosystems found in tier-1 metros. Despite this, lower attrition rates and less congested business environments in tier-2 cities are strengthening their appeal. Governments are further encouraging this growth through various incentives and development policies.
This transition represents a structural evolution for India's GCC landscape, positioning the country for continued growth in high-value work such as engineering and digital operations. The strategic expansion into these new hubs is expected to enhance India's standing as a global center for innovation and product development, with a future focus on purpose-driven leadership and talent empowerment.
