Bengaluru leads India’s GCC market with 40% share, job growth

Bengaluru has solidified its position as the frontrunner for Global Capability Centres (GCCs), holding a 40% share in India’s GCC leasing market from 2022 to June 2024. The city is home to the largest share of GCC talent, accounting for 34% in the first half of 2024. Bengaluru’s dominance is driven by its vast talent pool, mature technology ecosystem, and thriving start-up landscape. With a technology workforce of two million, the largest in India, the city continues to attract major global corporations.

While technology and Banking, Financial Services, and Insurance (BFSI) sectors remain the primary drivers, companies from retail, aerospace, semiconductor, and life sciences industries are also setting up specialised GCCs. The upcoming GCC policy in Karnataka is expected to further boost investment and job creation in the sector.

Between CY 2022 and mid-2024, nearly 53 million sq ft of office space was leased by GCCs across Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai.

During the first half of 2024, GCC leasing activity in these cities increased by 8% year-on-year, accounting for 37% of total office leasing in India. The BFSI sector’s share rose to 22%, driven by major leases from global banking and insurance firms, particularly in Mumbai, Bengaluru, and Pune.

Technology firms have leased about 15 million sq. ft. over the past two and a half years, maintaining their stronghold as the largest GCC occupiers. However, niche firms such as hedge funds, private equity firms, and engineering & manufacturing (E&M) companies are also expanding their presence in India, leveraging the country’s talent pool and cost advantages. Life sciences GCCs are growing as well, spurred by digitalisation and product development initiatives.

A joint analysis by CBRE and Zyoin found that engineering and information technology are the top functions within GCCs, reflecting the growing demand for digitalisation. In BFSI, workforce composition is primarily driven by engineering and IT, followed by business development and finance functions. Currently, approximately 1.66 million professionals are employed in GCCs across India. The cost advantage remains a major attraction, with software professionals in India earning about one-tenth of their U.S. counterparts. As the GCC ecosystem matures, Indian talent is moving beyond traditional service roles.

Anshuman Magazine, Chairman & CEO of CBRE India, South-East Asia, Middle East & Africa, noted, “Global corporations have transformed their captive centres in India from basic service providers to engines of innovation. GCCs are now driving digital transformation and product excellence, becoming essential to any forward-thinking global firm.”

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