India is today home to over 1,800 global capability centres which occupy more than 240 million square feet of Grade A office space across the country’s top seven cities, a new report by property consultancy JLL said on October 23.
In this, Bengaluru leads the pack, accounting for approximately 42% of the total space occupied by GCCs.
GCCs are offshore captive centres of multinationals that handle support operations such as back-office functions, IT assistance and customer relationship management, among others. Some large companies use GCCs as centres of excellence as well.
In the last 18 months alone, GCCs have leased 35.2 million square feet of space in India, reflecting a 49% growth over the activity undertaken in preceding 18 months (H2 2021-22), per the report. Bengaluru, Hyderabad, and Chennai collectively accounted for three-fourths of the space taken up by GCCs during this period (2023-H12024).
Also Read: 5 factors that make Bengaluru and Hyderabad leading hubs for global capability centres
Going forward, by 2026-27, the number of GCCs in India is expected to breach the 2,300-mark to boast a footprint of more than 280 million square feet, JLL said.
โRecent 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,โ said Dr Samantak Das, Chief Economist and head of Research and REIS, India, JLL.
Bright outlook for the sector in India
According to the report, the GCC landscape in India is dominated by three key sectors: Manufacturing, IT/ITeS, and BFSI, which collectively represent about 78% of the occupied area. This concentration reflects India’s strengths in technology, finance, and industrial expertise, as well as the country’s ability to support complex, high-value operations across these domains, the report noted.
Also Read: Bengaluru leads office space absorption by global capability centers in India at 4.3 mn sq ft: Report
“Today, we are witnessing Global Capability Centres in India spearheading cutting-edge R&D in AI, machine learning, and advanced manufacturing. The country’s GCCs are no longer just service providers; they are becoming the nerve centers of global corporations, with Indian leadership securing pivotal roles in shaping worldwide business strategies,” said Rahul Arora, Head – Office Leasing and Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
As per the report, GCCs account for approximately 50% of active, ongoing space requirements across the top seven cities, and as they evolve from cost-saving centers to transformation hubs, Indiaโs role in driving global business innovation and digital transformation is set to grow even further.
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