Beeline for India: Bengaluru is India’s GCC capital; Hyderabad, Chennai, Pune in list of top 6 cities with maximum leasing – Industry News

Over the past few decades, the Global Capability Centres (GCCs) have greatly expanded their operations in India. As per a report titled, ‘The India GCC Revolution: Where Real Estate and Talent converge’ by CBRE and Zyoin, the top six cities in India are expected to account for the majority of this GCC growth trajectory due to their outstanding talent pools, which will facilitate future growth and expansion. Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR and Mumbai are the top six cities in India. The report also revealed that GCC leasing activity increased by 8 per cent YoY in these six locations between January and June of 2024.

About 37 per cent of all office leasing activity in India occurred in the GCCs during the first half of 2024. However, during H1 CY 2024, major leases from international banking and insurance corporations in Mumbai, Bangalore and Pune drove the share of Banking, Financial Services and Insurance (BFSI) GCCs to 22 per cent.

Talking about the report Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE India, said, “A burgeoning array of industries is recognising the potential of Indian talent, establishing their GCC footprint. India’s abundant tech and non-tech talent pool is increasingly becoming a global solution. The future promises further diversification as life sciences, automobiles, and aerospace sectors expand their Indian GCC presence. With a strategic roadmap for 2024 GCC development, India is poised to spearhead the next wave of globalisation”.

Indexed ad volumes per Channel on TV dropped 3% in H1,2024 compared to the same period of previous year, reveals TAM report 

The Chinese conundrum: India must show greater strategic intent than caution in importing capital from the dragon

Embracing generative AI: The new industrial revolution of the 21st century

NSE, BSE to remain shut tomorrow on July 17 on account of Muharram

Furthermore, technology businesses have rented roughly 15 million square feet of office space during the last 2.5 years (2022–H1 2024). The main tenants of GCC office space historically have been IT and BFSI corporates. The growing presence of engineering and manufacturing (E&M) companies in India can probably be attributed to policies of supply chain diversification. GCCs in the life sciences have also shown a greater desire to grow within the nation, motivated by the need to digitalise services and promote product development.

City-wise trends 

Bengaluru is the GCC epicentre, bolstered by a dominant talent pool, a mature technology ecosystem and a thriving start-up landscape. The city boasts the largest technology workforce in India, with two million workers. While the technology and BFSI sectors remain the primary drivers of demand, other industries such as retail, aerospace, semiconductor and life sciences are establishing niche GCCs.

Karnataka’s upcoming GCC policy is expected to catalyse GCC setups and job creation in the city. Bengaluru commands 40 per cent share in India’s GCC leasing market (from CY 2022 to Jun ’24). Additionally, Hyderabad has become a major city in the GCC because of the government’s forward-thinking policies and effective urban planning. The city presents a strong option for GCCs and draws talent from throughout the country. 

Chennai, supported by a strong manufacturing base and a thriving IT industry, has developed as a key GCC hub. Newcomers from the GCC are drawn to the city because of its strength in STEM education. The R&D Policy 2022 of Tamil Nadu provides GCCs and R&D centres with enticing incentives. 

Six million square feet of GCC office space were leased in the city between 2023 and H1 2024, making up 17 per cent of all GCC leasing at that time. Global banking behemoths operate in the city in addition to technology, engineering and industrial sectors. Meanwhile, Pune attracts GCC occupiers due to its affordable real estate costs, cosmopolitan talent pool and close proximity to major engineering and automotive clusters. Pune had the second-highest proportion of GCC leasing in H1 2024, driven by big acquisitions.

“The evolution of GCCs from operational back offices to technology and innovation hubs necessitates a profound workforce skill transformation. By cultivating a highly skilled workforce and adopting innovative learning methods, GCCs In India can establish themselves as Global Centers of Excellence. India boasts a substantial engineering talent pool, enabling firms to expand across diverse roles. The emergence of AI and ML as pivotal technologies underscores the imperative for robust talent reskilling,” Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India, added.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}