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How Companies Evaluate Cities Before Setting Up a GCC in India

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Setting up a GCC India operation is no longer just about cost arbitrage. It is a strategic decision that affects talent access, innovation velocity, and long-term competitiveness. For global enterprises, choosing the right city determines whether the GCC becomes a back-office function or a high-value global hub.

CBRE Research Q4 2025 projects GCCs will account for up to 40% of total office space absorption in 2026. That single figure captures a broader shift: where a GCC is located now shapes competitive advantage, not just costs.

Here is a clear, step-by-step guide to how companies evaluate cities for GCCs in India.

Step 1: What Is the Foundation of a GCC Location Strategy?

Short answer: Talent depth, cost efficiency, and policy stability.

Before narrowing down cities for GCCs, enterprises assess macro fundamentals:

Talent Advantage

  • India produces around 2.5 million STEM graduates annually
  • The country hosts approximately 3.7 million tech professionals (Source: CBRE Research, Q2 2025)

For CXOs, this means scalable hiring across AI, digital, BFSI, engineering, and analytics functions. A strong GCC location strategy begins with mapping workforce clusters by sector.

Cost Optimisation

India offers:

  • Tech salaries up to 4x more economical than onshore markets
  • Rental rates 70 to 80% lower than Eastern Europe and LATAM A robust GCC real estate cost model must factor:
  • Salary benchmarks
  • Grade A rental levels
  • Operating costs
  • Tax implications

Cost is not just about today’s rent. It is about sustainable scalability.

Step 2: How Do Companies Compare Cities for GCCs?

Once India is selected, enterprises compare leading cities for GCCs based on measurable indicators.

Leasing Momentum as a Market Signal

CBRE data shows Bengaluru and Hyderabad accounted for 69% of GCC office leasing in Q4 2025. High absorption levels indicate ecosystem maturity, infrastructure readiness, and peer confidence.

Leasing velocity acts like a stock market index for real estate. It signals where confidence and capital are flowing.

Sector Clustering

Beyond technology, BFSI and Engineering and Manufacturing firms are expected to lead the next wave of GCC leasing, driven by enterprise AI investments and a sharper focus on

future-ready talent. Niche sectors like semiconductors, aerospace, automotive, and life sciences will sustain that momentum as digitisation deepens and R&D intensity rises.

Infrastructure and Connectivity

Companies assess:

  • Airport connectivity
  • Metro networks
  • IT infrastructure reliability
  • Proximity to residential catchments

Reliable infrastructure directly impacts productivity and employee retention.

Step 3: What Goes Into a GCC Real Estate Cost Model?

Short answer: Rent, fit-outs, operating expenses, and scalability. A comprehensive GCC real estate cost model includes:

Component

What to Evaluate

Rental Cost

Grade A market rates by micro-market

Fit-out Capex

₹3,000 to ₹6,000 per sq. ft. depending on quality

Seat Density

100 to 220 sq. ft. per seat

Utilities & Opex

Power backup, facility management

Scalability

Ability to expand within same tech park

More than 70% of prominent GCC occupiers between 2022 and H1 2025 preferred green-certified assets under 10 years old within integrated tech parks.

This shows a shift from transactional leasing to strategic real estate planning.

Step 4: Why Building-Level Due Diligence Matters

Choosing the right building is like choosing the operating system for your organisation. Enterprises evaluate:

Connectivity and Security

  • Visitor management systems
  • CCTV and surveillance
  • Multi-layered access controls

Digital Infrastructure

  • Telecom redundancy
  • Data security readiness
  • AI-enabled building management

ESG and Sustainability

Green certifications such as LEED and WELL are no longer optional. ESG compliance improves brand positioning and aligns with global reporting standards.

For investors and portfolio managers, green-certified integrated parks attract long-term institutional tenants.

Step 5: How Policy and Incentives Influence Decisions

India’s Union Budget 2025–26 introduced a National Framework for GCCs. Several states offer:

  • CAPEX and OPEX support
  • Payroll subsidies
  • Fast-track approvals

This creates a competitive landscape across cities for GCCs.

For expansion teams, this means modelling incentives against long-term operating benefits. GCC consulting advisors often support this phase with comparative incentive mapping.

Step 6: Micro-Market and Ecosystem Analysis

Within shortlisted cities, companies assess:

  • Presence of incubators and service providers
  • Established GCC ecosystem
  • Amenities such as hospitals, F&B, and retail
  • Employee commute easeHigh-quality real estate in integrated tech parks reduces fragmentation risk.

The goal is not just office space. It is ecosystem integration.

Frequently Asked Questions

What is a GCC in India?

A Global Capability Centre in India is an offshore hub established by multinational companies to manage technology, operations, analytics, R&D, and strategic functions.

How do companies choose the best location for a GCC?

They assess talent availability, infrastructure quality, real estate cost, policy support, and ecosystem maturity before finalising a city.

What are typical office space requirements for GCCs?

Seat density ranges from 100 to 220 sq. ft. per seat depending on industry and work profile.

Why are integrated tech parks preferred?

They offer scalability, infrastructure reliability, amenities, and ESG-compliant environments.

Key Takeaway

Evaluating cities for GCC India is a layered process. It begins with macroeconomic fundamentals and narrows down to micro-market infrastructure and building-level sustainability.

For CXOs and corporate real estate leaders, the right city is not simply the cheapest. It is the one that aligns talent scalability, cost structure, infrastructure strength, and long-term strategic vision.

If you are planning to establish or expand a GCC India footprint, begin with a structured GCC location strategy backed by data, ecosystem insights, and a realistic GCC real estate cost model.

Partnering with an experienced advisor like CBRE India can help translate market intelligence into actionable decisions. With deep research insights, transaction expertise, workplace strategy capabilities, and ESG advisory, CBRE India supports enterprises across site selection, commercial negotiations, cost modelling, and long-term portfolio planning, ensuring your GCC is built for scale, resilience, and sustained value creation.

Sources:

https://www.cbre.co.in/insights/figures/india-office-figures-q4-2025

https://www.cbre.co.in/insights/figures/india-market-monitor-q4-2025-office

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