India’s Global Capability Centre (GCC) landscape is gradually moving beyond traditional technology hubs. Over the past few years, several multinational companies have started setting up operations in Tier-2 and Tier-3 cities to tap new talent pools while avoiding the high costs and congestion associated with major metros. While cities such as Bengaluru, Hyderabad and Pune have historically dominated the GCC ecosystem, companies are now exploring emerging locations to expand their operations.
Around 30% of newly established GCCs are choosing Tier-2 and Tier-3 cities, supported by government incentives and infrastructure initiatives. These locations are becoming attractive because they offer cost advantages and access to previously untapped talent pools. For example, Pune is projected to generate 45,000 GCC-related jobs in 2025 and is expected to absorb nearly 4 million sq. ft of office space. The expansion highlights the strong growth potential for emerging technology hubs across the country.
Unlike earlier GCC setups that mainly handled support operations, many of the newer centres are focused on advanced capabilities such as AI, engineering, analytics and digital platforms. Several multinational firms have recently expanded their presence in smaller cities. Bose Professional has established a facility in Mangaluru, marking its first dedicated R&D centre outside its headquarters in Massachusetts. Eisai has launched a global capability centre in Visakhapatnam to support global digital transformation initiatives. Meanwhile, EG Denmark has expanded its GCC in Mangaluru, focusing on product engineering and digital platforms.
Other companies are also strengthening their presence in emerging technology clusters. Infineon Technologies has set up a GCC in GIFT City near Ahmedabad, concentrating on chip design research, product software, IT systems and application engineering. Flex has expanded its India footprint with a Global Business Services centre in Coimbatore, supporting operations in supply chain, finance, procurement, IT, engineering and HR. Similarly, Technip Energies opened a new office in GIFT City last year to strengthen engineering and innovation capabilities for both domestic and global energy projects.
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