India solidifies its position as global leader with over 1,800 global capability centres
Oct 23, 2024
New Delhi [India], October 23 : India has firmly established itself as the world's top destination for Global Capability Centres (GCCs), with over 1,800 centers serving more than 1,400 global corporations, according to a report by JLL India.
The country has added over 100 new GCCs since 2022, underscoring its strategic importance to multinational companies looking to optimise their global operations.
The GCCs now occupy more than 240 million sq. ft of Grade A office space across India's seven largest cities, with Bengaluru--often referred to as the "Silicon Valley of India" - leading the charge. Bengaluru accounts for 42 per cent of the total space occupied by GCCs, thanks to its thriving tech ecosystem, top-tier educational institutions, and cosmopolitan work culture that attracts talent from across the globe.
This surge in GCC activity highlights India's growing influence in the global business landscape, the real estate and investment management added.
In the last 18 months alone (January 2023 to June 2024), GCCs leased a staggering 35.2 million sq. ft. of office space, with Bengaluru, Hyderabad, and Chennai capturing three-quarters of this leasing activity.
"Recent leasing activity further emphasises the GCC sector's robust growth. In the last 18 months alone (Jan-December 2023-H1 2024), GCCs leased an astounding 35.2 million sq. ft of office space. Notably, Bengaluru, Hyderabad, and Chennai captured a significant three-quarters of this leasing activity, underscoring the region's appeal with its combination of world-class infrastructure, deep talent pools, and supportive business ecosystems," said Dr Samantak Das, Chief Economist and head of Research and REIS, India, JLL.
The sector is primarily dominated by three key industries: Manufacturing, IT/ITeS (Information Technology and Information Technology Enabled Services), and BFSI (Banking, Financial Services, and Insurance), which collectively account for around 78 per cent of the space occupied by GCCs.
The outlook for India's GCC sector remains promising, with GCCs representing approximately 50 per cent of active office space requirements in the country's major cities, as per the report.
As these centers transition from cost-saving outposts to innovation hubs, India is set to play an even greater role in driving global business transformation and digital innovation, the firm added.
With its vast talent pool, robust infrastructure, and supportive government policies, India continues to strengthen its position as the world's premier destination for global capability centres, said the firm.
