September 28, 2026

Beyond the Metros: Unlocking India's Next GCC Chapter

EXECUTIVE SUMMARY

India’s Global Capability Centre (GCC) landscape is entering a new phase of expansion. With more than 2,100 GCCs generating over $98 billion in annual revenue and employing nearly 2.4 million professionals, India remains a leading destination for global organisations. However, around 90% of GCCs are concentrated in Tier I cities, increasing pressure on talent, costs and operating capacity.

At the same time, structural shifts are creating a stronger case for Tier II cities. Changing workforce preferences, improved digital infrastructure and growing state-level incentives are helping narrow the gap between metropolitan and emerging locations. Tier II cities are increasingly offering access to skilled and stable talent pools, lower attrition and more competitive talent, real estate and operating costs.

This report examines the factors driving the rise of Tier II GCC hubs, the emerging sector-specific clusters and the key considerations for organisations evaluating their next GCC location. 

Key Takeaways

The strategic question has shifted from whether to expand into Tier II cities to how fast. Early movers stand to capture a meaningful first-mover advantage in talent, real estate, and government partnership terms. 

GCC Expansion Is Moving Beyond Traditional Hubs

Organisations are increasingly evaluating Tier II cities to diversify their GCC footprint and address talent, cost and capacity considerations.

Talent Dynamics Are Strengthening the Tier II Proposition

Growing local talent pools, evolving workforce preferences and lower attrition are enhancing the viability of Tier II cities for skilled GCC operations.

Infrastructure and Policy Are Enabling New GCC Locations

Improved digital connectivity, alongside state-level incentives and subsidies, is strengthening the operating environment for GCCs beyond metropolitan hubs.

Tier II Cities Are Developing Sector-Specific Capabilities

Emerging sector clusters are enabling organisations to evaluate Tier II locations based on talent, capabilities and ecosystem depth, alongside cost considerations.

GCC Location Strategy Is Becoming More Multi-Dimensional

Organisations need to assess talent, infrastructure, real estate, policy support, operating costs and scalability when evaluating Tier II locations.

Authors

Roshan Arakal

Associate Director
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