Knight Frank, India’s leading real estate consultancy, in association with 3Ai, in their report ‘Global Capability Centres and India Office Market Landscape’ cited that office absorption by Global Capability Centres (GCC) is estimated to reach 26 mn sq ft by 2027 up from 19.69 mn sq ft in 2023. Transaction activities have increased by 16% from 16.99 mn sq ft in 2018 with GCCs completing 6,667 office leasing deals across eight major cities between 2018 and 2023. The growth of GCCs highlights India's potential to enhance processes and drive business innovation.
To be launched at the GCC X SUMMIT 2024, the report which is themed-- ‘Reimagine the New Next in GCCs with Gen AI’ aimed to put a greater emphasis on continuous transformation via collaborative innovation and further discuss the role India plays. There is an urgent need for Data, AI and Analytics leaders in GCCs to collaboratively come together to discuss their greater role to create competitive advantage for their global enterprises. It is imperative to constantly identify new growth opportunities, drive innovation with Gen AI and realign business strategies.
According to the report, IT/ITeS sector GCCs lead the chart followed by BFSI and Consulting GCCs. For BFSI, Mumbai leads with highest percentage of GCCs under the BFSI sector and Bengaluru leads with highest percentage of GCCs in the IT/ITeS sector. Around 80% of the GCCs in India are currently servicing international facing clients.
Chairman & Managing Director, Knight Frank India, Shishir Baijal said, “India's GDP growth continues to be the fastest among major economies in the world, attracting attention for its strong infrastructure, and a consistent influx of top-tier talent and corporate entities. In the dynamic landscape of global business, India's Global Capability Centres (GCCs) have evolved beyond traditional roles to become pivotal hubs of global strategy and local ingenuity. As India solidifies its position as a cornerstone of global GCC networks, these centres emerge as unparalleled hubs of creativity and collaboration.”
The CEO of 3Ai, Sameer Dhanrajani said, “The future of GCCs in India is promising, with projections showing over 1,900 centers by 2025, employing around 2 million people. Emphasis will be on integrating advanced technologies, driving innovation, and fostering sustainability. GCCs are expected to play critical roles in global operations, particularly in generative AI, customer-centric business development, and as-a-service transformations. By 2030, they will undergo significant transformation, becoming integral parts of global organizations. India centres will be led by leaders focused on innovating new products and services, shifting from their current form to essential drivers of business success.”
National Director, Occupier Strategy and Solutions, Bengaluru, Knight Frank India, Rahil Gibran said, “India's GCC market is expected to grow unabated over the next few years and already witnessed a high momentum with the current number of GCCs standing at around 1,600 plus in the country. The development of new GCCs specially catering to the manufacturing sector has increased on a year-on-year basis and the talent landscape mainly in the technology sector has evolved over the years to meet the growing demand of new GCCs hence helping the growth of GCC in India.
The current global operating model primarily balances roles based on location. The new distributed model incorporates centralized work-from-home strategies to minimize costs while maintaining risk and effectiveness. Migration of roles within this new model can achieve higher savings and lower costs effectively. From the model chart, the hybrid model gives the maximum benefit for a GCC in India.
India remains a key hub for GCCs, alongside other destinations such as the US, Latin America, China, Europe, and the APAC region. India, the US, and China stand out for their ease of hiring talent. Conversely, India, and the APAC region are noted for lower operational costs compared to global averages. Therefore, multinational corporations worldwide increasingly view India as a preferred destination for establishing or expanding operations, with US companies at the forefront of this trend.
