Global Capability Centers (GCCs), also known as Global In-House Centers (GICs), have evolved far beyond their initial role of handling back-office functions. Today, they serve as innovation hubs and Centers of Excellence (CoEs), offering multinational corporations a blend of cost-effectiveness, extensive talent pools, and operational agility.
India is quickly becoming the hotspot for GCCs. With its rich talent pool, strategic location, and business-friendly environment, it’s no wonder multinational corporations are flocking here to gain a competitive edge.
As India prepares to capture a significant share of this growing market, let’s delve into how GCCs are transforming the commercial real estate landscape and why cities like Bengaluru are becoming crucial players in this evolution.
GCC Growth in India
India is set to become a dominant player in the GCC sector, with the market projected to reach USD 110 billion by 2030 (EY). The GCC sector in India is projected to lease around 26 million square feet of office space by 2027, up from 19.69 million square feet in 2023 (Knight Frank). This surge highlights India’s growing significance as a hub for business process management, IT services, and other critical functions.
Key Cities for GCC Expansion
Several Indian cities are emerging as prime destinations for GCCs, each with its own unique perks:
● Bengaluru: Often called India’s Silicon Valley, Bengaluru is a top pick for tech-focused GCCs. The city’s strong tech ecosystem, vast talent pool, and supportive government policies make it perfect for IT-centric operations. The surge in GCC leasing here marks its status as a tech powerhouse.
● Hyderabad: With its booming IT sector and favourable business climate, Hyderabad is becoming a major hub for GCCs. The city offers a thriving tech environment and a skilled workforce, making it an attractive option for multinational companies.
● Pune: Known for its strong educational infrastructure and growing commercial developments, Pune is also gaining a lot of traction. The city’s rise in GCC leasing activity highlights its emergence as a key location.
● Gurgaon: Proximity to the national capital and well-developed commercial infrastructure make Gurgaon a strategic choice for many companies. Its business-friendly environment and closeness to major IT parks enhance its appeal.
Reasons for GCC Expansion
So, what’s driving the expansion of GCCs in India? Here are a few key factors:
● Talent Pool: India offers access to a vast and diverse talent pool, essential for GCCs seeking top-tier professionals across various domains.
● Government Support: India’s pro-business policies and incentives create a conducive environment for GCC growth. Government initiatives aimed at promoting innovation and business development play a crucial role.
● Technology Ecosystem: A thriving tech landscape with cutting-edge advancements supports the complex needs of modern GCCs. It is widely believed that India’s growing tech infrastructure is a significant draw for multinational companies. In fact, India’s fintech is considered to be the leading in the world.
Why GCCs are Opting for Flexible and Managed Office Solutions
GCCs are increasingly opting for flexible and managed office solutions for various reasons:
- Adaptability: Managed offices offer the flexibility needed to accommodate changing business needs and scaling requirements, which is crucial for GCCs as they grow and evolve.
- Premium Infrastructure: Access to high-quality amenities and technology without substantial upfront investment is a key benefit. Managed office solutions provide a ready-to-use environment with advanced infrastructure.
- Scalability: Flexible office solutions enable GCCs to adjust their space requirements based on their growth trajectory, helping companies avoid long-term commitments and adapt to changing needs.
- Cost Efficiency: Managed offices offer reduced capital expenditure and operational costs, providing cost-effective solutions without compromising on quality.
- Productivity: Enhanced work environments foster collaboration and innovation, driving overall productivity. Managed and flexible offices are designed to create conducive spaces for high performance and creativity, fostering a great community.
COWRKS’ Unique Offerings
At COWRKS, we understand the unique needs of GCCs and offer customised solutions to meet these requirements:
● Location Benefits: Our office spaces are strategically situated near major IT parks and commercial centres, in grade ‘A’ real estate providing prime real estate for your operations. COWRKS is present across all the major cities in India, such as Bengaluru, Mumbai, Hyderabad, Pune, and more, which are attracting GCCs, and we provide great amenities at prime locations.
● Tailored Services: Our offerings start with comprehensive support, including legal setup, technology support, and daily management. Our end-to-end solutions are designed to facilitate seamless operations, which can significantly contribute to GCC’s development and growth.
● Future-Ready Designs: Our offices are created with flexibility, inspiration, and productivity in mind, catering to the evolving needs of GCCs. These spaces are thoughtfully designed, taking care of everything you need. The designs are ergonomic and inspiring, incorporating design strategies like Biophilia, colour psychology, and more.
● Comprehensive Support: From legal and compliance to technology and more, we provide all the necessary support to ensure that your GCC operates smoothly. Our centre managers and staff offer unrivalled hospitality and ease to help you focus on what matters for growth.
● Flexible Solutions: Choose from private offices, dedicated desks, or coworking spaces with zero capital expenditure required. Our flexible offerings cater to various business needs and growth stages. For businesses that want something tailored to their needs, our Managed Office solution comprises a team of experts that delivers what you want.
Conclusion
Global Capability Centers (GCCs) are significantly impacting the commercial real estate sector in India, leading to a surge in demand for flexible and managed office solutions. As GCCs continue to expand, they are in search of environments that offer adaptability, top-notch infrastructure, and cost-effectiveness, which are all qualities provided by COWRKS. By teaming up with COWRKS, GCCs can seamlessly integrate into India’s dynamic business landscape and focus on their core strengths: driving innovation and excellence.
Are you ready to establish your GCC in India? Let COWRKS be your strategic partner in this exciting endeavour. Contact us for a free consultation and find out how we can assist you in navigating this thriving market.
