India’s Tier-2 cities are fast becoming the new hotspots for Global Capability Centres (GCCs), driven by affordable talent, improving infrastructure and strong government policies. Recent reports predict a 30 to 40 percent rise in GCC demand across these cities in the coming years, as companies seek cost efficiency and higher employee retention.
Coimbatore is leading the charge in southern India with over 60 GCCs employing more than 75,000 professionals. The city’s industrial expertise and focus on product engineering and R&D have attracted major companies such as Bosch, State Street and Amazon.
Kochi, backed by the Kerala Global Capabilities Centre Framework, is positioning itself as an innovation hub for AI, quantum computing and photonics. Its Infopark hosts more than 580 companies, including TCS, Wipro and Cognizant, and houses over 20 GCCs focused on IT and digital services.
Ahmedabad has emerged as the largest GCC hub outside India’s Tier-1 cities, with more than 35 GCCs, 25 service providers and 60 startups. GIFT City has become a key base for multinational firms like Google, Oracle, IBM and Capgemini. New entrants such as Infineon Technologies and Technip Energies are further strengthening the ecosystem.
In central India, Indore has secured investments worth ₹700 crore for GCCs and ₹5,000 crore in foreign direct investments. The city’s GCCs are focused on automation, AI and BFSI, with growing interest in healthcare and logistics.
Lucknow is seeing rapid progress with the Uttar Pradesh Global Capability Centres Policy 2024 offering incentives like land subsidies, tax exemptions and payroll support. The city is also building India’s first AI City and a massive Mega IT City, supported by Sify Infinit Spaces’ new AI data hub.
Mysuru, located near Bengaluru, is benefiting from satellite expansions by tech giants. IBM’s Client Innovation Centre and major semiconductor investments under the EMC 2.0 initiative have positioned it as a rising tech cluster.
In North India, the Chandigarh Tricity region has become a major draw for GCCs due to its strong education base and cost advantages. It is home to Infosys, Tech Mahindra and eClerx, alongside a growing SaaS and fintech startup ecosystem.
Mangaluru is also gaining momentum, hosting both large IT operations like Infosys and Cognizant, and smaller specialised GCCs such as EG/DK and Riskonnect.
Industry estimates show GCCs in Tier-2 cities have achieved up to 35 percent lower operational costs, boosting profitability by around 25 percent. This growth is not only driving business expansion but also supporting regional development and employment across India.
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