Global Capability Centers (GCCs) in India are increasingly adopting a “hub plus one” strategy, expanding their operations from traditional metropolitan bases to establish additional centers in tier-II cities. This strategic shift aims to mitigate risks associated with over-concentration in a single location, diversify talent pools, enhance cost efficiencies, and bolster business continuity.
According to data from industry facilitators like ANSR, at least a fifth of fresh GCC investments over the next one to two years are expected to follow this “hub plus one” model. Vikram Ahuja, co-founder of ANSR, emphasizes that having a second delivery center significantly reduces risks tied to over-concentration in one city, with improvements in physical and digital infrastructure making tier-II cities viable for global delivery.
Hiring by GCCs in tier-II and tier-III cities is growing faster than in tier-I hubs. For instance, in Q1 FY26, hiring in Coimbatore grew by 34% sequentially, Kochi by 28%, and Ahmedabad by 25%, significantly outpacing the 3-10% growth seen in the six major metros. While some tier-II cities still face challenges in meeting depth requirements for advanced digital roles and infrastructure, their increasing attractiveness is undeniable.
Several Fortune Global 500 companies have already implemented this strategy. For example, Uber has a “plus one” center in Vizag alongside its Hyderabad and Bengaluru operations, Allianz has a satellite in Trivandrum complementing its Pune center, and Ford has expanded to Coimbatore in addition to its Bengaluru, NCR, and Chennai locations.
This GCCs “hub plus one” approach is transforming India’s GCC landscape, positioning the country for more diversified and resilient growth in its role as a global capability hub.
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