India has become a fulcrum for Global Capability Centers (GCCs) due to its vast talent pool and cost-effective real estate market. A newly conducted study by CBRE, a real estate consultancy firm, and staffing and recruitment agency Zyoin, discussed India’s position as a major hub for GCCs, exploring multiple reasons why major firms from around the world are turning towards India for growth and expansion.

Talent Stacking in GCCs

The majority of India’s talent pool is concentrated in the Technology and BFSI (Banking, Financial Services, and Insurance) sectors, the report informed. Additionally, India provides a major cost advantage to companies operating GCCs in India, as the average salary of a software professional in India is only one-tenth of that in the US.

Other industry sectors consisting of India’s talent include engineering, information technology, business development & sales, operations, finance, human resources, support, and marketing.

GCC Talent Distribution by City (June 2023)

• Bengaluru: 34%

  
  

• Delhi-NCR: 16%

  

• Hyderabad: 12%

• Mumbai: 12%

• Pune: 10%

• Chennai: 10%

• Others: 4%

Real Estate Dynamics in GCCs

Real estate in India plays a huge role in the success of GCCs. The top nine cities offer over 880 million square feet of Grade A office space. According to the report, GCCs accounted for 37% of total leasing in the first half of 2024. The rental costs in Indian cities are significantly lower than those in competing Asian and Eastern European markets.

Key Leasing Statistics

Tech companies have leased approximately 15 million square feet of office space in the past 2.5 years, making up 38% of total technology leasing. The share of BFSI GCCs rose to 22% in the first half of 2024. ESM GCCs are expanding their presence due to supply chain diversification, while Life Sciences GCCs are increasingly focusing on digital services and product development.

GCC Deals Across Key Cities (2022 – H1 2024)

Between 2022 and the first half of 2024, GCCs leased approximately 53 million square feet of office space across key Indian cities. Bengaluru led the way with 40% of the leases, followed by Hyderabad with 21%, Chennai with 14%, Pune with 12%, Delhi-NCR with 9%, and Mumbai with 4%.

Navigating the Skill Shift in GCCs

The growth of GCCs can be attributed to factors such as the availability of fresh and experienced talent, a supportive regulatory framework, and cost-effective real estate. To maintain this growth, focus areas for developing a future-ready workforce include strategic investment, leadership development, experiential and personalised learning, and effective measurement and evaluation.

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Open Job Positions and Emerging Sectors

There are more than 200,000 job openings in GCCs, showing strong growth and demand. Emerging sectors leading this growth include semiconductor firms (focused on wafer design and development), life sciences firms (working on medical devices, imaging R&D, and analysis), and automotive companies (involved in designing smart/connected vehicles, enhancing digital customer experiences, and optimizing procurement).

India’s advantage in talent and real estate is pushing the growth of GCCs, making it the favoured destination for global companies.