The Tamil Nadu government has announced the establishment of four new Global Capability Centre hubs in Coimbatore, Madurai, Tiruchirappalli, and Vellore, aiming to expand the state’s GCC ecosystem beyond Chennai. The announcement was made on August 7 at the GCC Next Conclave held in Chennai.
Currently, Chennai remains the state’s main GCC destination, accounting for more than 85 per cent of units and 90 per cent of the talent employed. However, under the new “hub and spoke” strategy, the state plans to promote GCC growth in Tier 2 cities.
This expansion is supported by the state’s GCC policy for 2024 to 2027, which offers payroll subsidies, infrastructure support, and incentives for setting up innovation labs and research and development centres.
Coimbatore has already emerged as a potential GCC hotspot in South India, backed by a strong education base, cost advantages, and increasing interest from global companies. A recent industry report noted that several large enterprises have shortlisted the city for upcoming technology service expansions.
Madurai is home to more than 300 technology and BPM companies and is benefitting from infrastructure projects such as the Rs 11,000 crore Madurai–Dindigul–Virudhunagar–Theni industrial corridor.
Tiruchirappalli and Vellore are also attracting investment interest due to their academic institutions and technology-ready workforce. Vellore in particular is drawing from talent developed by VIT and CMC, making it an appealing location for healthcare and engineering-focused GCCs.
The state government stated that these four locations will receive dedicated support to attract both Fortune 500 companies and mid-market enterprises that are looking to establish digital and R&D hubs.
Chennai itself continues to see significant growth, adding nearly 95,000 employees in the last five years to reach a total workforce of more than 2,13,000 in the sector.
India now hosts over 174 Fortune Global 500 GCCs, with states increasingly competing to attract new investments. With this expansion, Tamil Nadu is positioning itself as a strong alternative to Bengaluru and Hyderabad, leveraging its cost benefits, infrastructure projects, and an annual STEM graduate output of around 10 to 15 lakh.
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