India: The Top Destination for Global Capability Centres
India has become the leading destination for Global Capability Centres (GCCs), hosting over 1,800 centers for more than 1,400 global companies, as reported by JLL India. Since 2022, India has added over 100 new GCCs, highlighting its strategic importance for multinational companies aiming to optimize global operations.
Bengaluru: The Silicon Valley of India
Bengaluru, known as the “Silicon Valley of India,” is at the forefront, occupying 42% of the total GCC space. The city is favored for its vibrant tech ecosystem, prestigious educational institutions, and diverse work culture, attracting talent worldwide.
Leasing Activity and Growth
In the past 18 months, GCCs have leased 35.2 million sq. ft. of office space, with Bengaluru, Hyderabad, and Chennai accounting for 75% of this activity. Dr. Samantak Das, Chief Economist at JLL India, emphasized the region’s appeal due to its infrastructure, talent, and business-friendly environment.
Key Industries and Future Outlook
The GCC sector is dominated by Manufacturing, IT/ITeS, and BFSI industries, which occupy 78% of the space. GCCs represent about 50% of active office space needs in major cities, transitioning from cost-saving centers to innovation hubs. India’s vast talent pool, infrastructure, and supportive policies continue to strengthen its position as a global leader in GCCs.
Doubts Revealed
Global Capability Centres (GCCs) -: Global Capability Centres are offices set up by big companies from around the world in different countries to handle important tasks like technology, customer service, and business operations. They help companies work more efficiently by using local talent and resources.
Bengaluru -: Bengaluru, also known as Bangalore, is a city in India famous for its technology industry. It is often called the ‘Silicon Valley of India’ because many tech companies have their offices there.
Tech ecosystem -: A tech ecosystem refers to the network of technology companies, startups, and skilled workers in a particular area. In Bengaluru, this ecosystem is strong, with many tech companies and talented people working together.
Diverse work culture -: A diverse work culture means having people from different backgrounds, cultures, and experiences working together. This diversity helps bring new ideas and perspectives to the workplace.
Leased office space -: Leased office space means renting a place for a company to work from. Companies lease office space to have a physical location for their employees to work and collaborate.
Manufacturing, IT/ITeS, and BFSI industries -: Manufacturing involves making products, IT/ITeS stands for Information Technology and Information Technology Enabled Services, which includes tech and software services, and BFSI stands for Banking, Financial Services, and Insurance, which deals with money and finance-related services.
