India's Rising Stars: Beyond Bengaluru - The Next-Gen GCC Hubs

India's allure as a global powerhouse for business services is undeniable. While Bengaluru's reputation as the "Silicon Valley of India" remains strong, a new wave of cities is emerging as prime locations for Global Capability Centers (GCCs). These rising stars offer a unique blend of talent, infrastructure, and cost advantages that are reshaping the landscape of business continuity and resilience.

The Old Guard: Still Holding Strong

Bengaluru's dominance in the GCC space is well-deserved.  With its high concentration of tech talent, it's no surprise that it houses the most GCCs in India. Hyderabad, with its lower cost of living and friendly government policies, is a close contender. Chennai, known for its engineering prowess, and Pune, with its thriving IT scene, also remain popular choices.

The New Kids on the Block

But the game is changing fast, and emerging cities are stepping into the limelight, offering compelling alternatives for businesses seeking to establish their GCCs. Coimbatore, with its robust manufacturing and engineering base, is attracting attention for its cost-effective solutions and skilled workforce. Kolkata, a city steeped in history and culture, is rapidly becoming a hub for IT and financial services GCCs, thanks to its lower operating costs and access to talent from prestigious institutions.
 

Why the Shift?

Several factors are driving this shift towards emerging cities:

• Talent Beyond Tier 1: While major cities have traditionally held the lion's share of skilled professionals, the talent pool is expanding rapidly in smaller cities. This is due in part to government initiatives to promote education and skill development across the country.
• Cost Efficiency: Emerging cities often offer lower operating costs, including real estate, salaries, and taxes. This can be a significant advantage for companies looking to optimise their GCC operations.
• Business Continuity and Resilience: Diversifying GCC locations can enhance business continuity and resilience by reducing the risk of disruptions due to natural disasters, political instability, or other unforeseen events.
• Government Incentives: Many state governments in India offer attractive incentives to businesses setting up operations in their regions. These incentives can include tax breaks, subsidies, and streamlined regulatory processes.
   

A Look at the Numbers

The numbers support the growing popularity of emerging cities for GCCs. According to a recent report by NASSCOM, the number of GCCs in India grew by 11% in 2022, with a significant portion of this growth occurring in tier 2 and tier 3 cities.
 

The Future of GCCs in India

The future of GCCs in India is bright, with a growing number of global enterprises recognising the value of establishing centres of excellence in the country. As the talent pool expands and infrastructure improves in emerging cities, we can expect to see continued growth in this sector.
 

Key Takeaways

• Emerging cities are offering compelling alternatives to traditional GCC hubs in India.
• Talent availability, cost efficiency, and business continuity are key drivers of this shift.
• Government incentives are playing a role in attracting businesses to emerging cities.
• The future of GCCs in India looks promising, with continued growth expected in the coming years.

If you're considering setting up a GCC in India, don't overlook the potential of these rising stars. They may just be the key to unlocking your company's next phase of growth and resilience.