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India's Tier II Cities Attract Global Business Hubs
17 Feb
Summary
- Global Capability Centers added 31 million sq ft of office space recently.
- Bengaluru leads with 34-39% share and over 900 GCC units.
- More than 200 new GCCs entered India in the past two years.
India is increasingly recognized as a crucial hub for multinational corporations, moving beyond traditional outsourcing to establish significant operations. While major metros like Bengaluru and Hyderabad continue to anchor expansion, companies are now actively exploring Tier II cities to leverage cost efficiencies and diverse talent pools. This evolving landscape is significantly impacting office space demand nationwide.
Global Capability Centers (GCCs) have been instrumental in this growth, contributing a record 31 million sq ft of office space in the last year. Bengaluru remains the dominant center, boasting a 34-39% market share and over 900 GCC units. Hyderabad follows, capitalizing on its strengths in healthcare and biotech. Over 200 new GCCs have established a presence in India within the past two years, with projections indicating a substantial increase in overall footprint.
Companies are adopting a multi-city strategy, viewing India's diverse urban framework as a competitive advantage. Tier II cities such as Ahmedabad, Jaipur, and Kochi are gaining traction, offering substantial cost savings and access to emerging talent. This trend underscores India's indispensable role in global corporate strategies, providing resilience and scalability for multinational enterprises navigating changing business demands.
