Introduction: India’s Office Leasing Landscape Transformed by GCCs

India’s commercial real estate sector is witnessing a paradigm shift in FY25, with Global Capability Centres (GCCs) emerging as the primary drivers of office leasing. According to a recent Lokmat Times report, GCCs—especially those established by Fortune 500 companies—are leading the charge, accounting for a significant proportion of new office space absorption. This trend is reshaping the country’s urban business districts, talent markets, and the strategic priorities of global professional services firms.

What Are Global Capability Centres (GCCs)?

Global Capability Centres (GCCs) are offshore units set up by multinational corporations to deliver a range of business functions, including IT, finance, analytics, engineering, and customer support. India has become the world’s top destination for GCCs due to its vast talent pool, cost advantages, robust digital infrastructure, and mature business ecosystem. According to NASSCOM’s 2024 GCC India Report, there are now over 1,900 GCCs in India, employing more than 1.66 million professionals.

FY25: GCCs Drive Record Office Leasing in India

The Lokmat Times article highlights that GCCs are expected to account for up to 40% of India’s total office leasing in FY25, a historic high. Major cities like Bengaluru, Hyderabad, Pune, Chennai, and Gurugram are witnessing unprecedented demand for Grade A office spaces, with Fortune 500 companies leading the expansion. This surge is attributed to:

• Digital Transformation: Accelerated adoption of cloud, AI, and automation is prompting global firms to expand their offshore capabilities.
• Cost Optimization: GCCs offer significant operational savings compared to onshore locations.
• Talent Access: India’s deep pool of STEM and business graduates is unmatched globally.
• Strategic Resilience: Diversifying operations in India enhances business continuity and risk management.

Fortune 500 Companies: Leading the GCC Expansion

Fortune 500 companies are at the forefront of this GCC-driven leasing boom. Giants in banking, technology, pharmaceuticals, and professional services are rapidly expanding their Indian footprints. Recent research by CBRE India Office MarketView Q1 2024 confirms that Fortune 500 firms accounted for over 60% of new GCC-related leasing in Q1 2024 alone.

Notable examples include:

• JPMorgan Chase: Expanded its Bengaluru and Hyderabad campuses, adding over 1 million sq ft in FY24-25.
• Google: Leased new facilities in Pune and Hyderabad for cloud and AI R&D.
• Pfizer: Opened a new GCC in Chennai for global digital operations.
• Accenture and Deloitte: Both professional services giants have doubled their GCC headcount in India since 2022, with significant new office leases in Gurugram and Bengaluru.

This trend underscores India’s pivotal role in the global digital economy and the growing importance of professional services companies establishing or expanding their GCCs.

Key Trends Shaping GCC Office Leasing in FY25

1. Flight to Quality: GCCs are demanding Grade A, tech-enabled office spaces with advanced security, sustainability features, and collaborative work environments. Landlords are responding with premium developments in business districts.
2. Flexible Work Models: Hybrid and hub-and-spoke models are influencing leasing decisions. GCCs are opting for satellite offices in Tier 2 cities to tap into new talent pools and reduce costs.
3. ESG and Wellness: Environmental, Social, and Governance (ESG) criteria are now central to leasing strategies. Green buildings, employee wellness zones, and smart facilities are in high demand.
4. Long-Term Commitments: With business continuity in mind, Fortune 500 companies are signing long-term leases (5-10 years), signaling confidence in India’s stability.
5. Technology Integration: Smart building management, IoT, and AI-driven security systems are becoming standard requirements for GCCs.

Recent Research and Market Data: GCCs’ Impact on India’s Real Estate

Multiple recent studies reinforce the scale and impact of GCCs on India’s office leasing:

• JLL India (May 2024): GCCs contributed 38% of total office leasing in Q1 2024, up from 29% in Q1 2023.
• Cushman & Wakefield (April 2024): Predicted GCCs will lease over 60 million sq ft in 2024-25, led by technology and professional services sectors.
• NASSCOM (2024): GCCs are expected to generate $60 billion in value for India by 2025, with hiring focused on digital, analytics, and engineering roles.

These insights highlight the critical role of GCCs in driving not just real estate demand, but also employment, innovation, and India’s global business stature.

Professional Services Firms: Why Establish GCCs in India?

For professional services companies—spanning consulting, legal, audit, finance, and IT—India offers a unique value proposition for setting up GCCs:

• Access to Specialized Talent: India produces over 2 million STEM graduates annually, alongside a large pool of finance, legal, and analytics professionals.
• Cost Efficiency: Operating costs are up to 60% lower than in the US or Europe, allowing firms to scale rapidly.
• Innovation Ecosystem: India’s mature startup and innovation landscape enables GCCs to collaborate with local tech partners.
• Regulatory Support: Government policies like Digital India and SEZ incentives make it easier to establish and expand GCCs.
• Business Continuity: India’s robust infrastructure and diversified city options mitigate operational risks.

These advantages have made India the go-to destination for professional services giants like EY, KPMG, PwC, and McKinsey, all of whom have significantly expanded their GCC presence in recent years.

Han Digital: The Talent Strategy Partner for GCCs

As GCCs continue to shape India’s office leasing and talent markets, the need for expert talent strategy partners has never been greater. Han Digital stands out as a leading talent intelligence and recruitment consulting firm with a unique understanding of India’s evolving GCC ecosystem.

How Han Digital Adds Value to GCCs and Professional Services Firms

• Deep Market Intelligence: Han Digital’s proprietary research tracks talent availability, compensation benchmarks, and skill trends across all major Indian cities, enabling GCCs to make data-driven location and hiring decisions.
• Senior Leadership Connections: With established relationships across C-suite and HR leadership in Fortune 500 and high-growth firms, Han Digital facilitates strategic talent conversations and executive search mandates for new and expanding GCCs.
• Customized Talent Solutions: From workforce planning to diversity hiring and employer branding, Han Digital tailors its services to the unique needs of professional services GCCs.
• Agile Recruitment: Leveraging digital tools and a robust candidate network, Han Digital accelerates time-to-hire for niche roles in technology, finance, analytics, and consulting.
• Thought Leadership: Han Digital regularly publishes insights on talent trends, GCC expansion strategies, and future-of-work models, helping clients stay ahead in a competitive market.

For professional services companies looking to establish or scale their GCCs in India, Han Digital is the partner of choice for talent acquisition, market entry, and leadership hiring.

Challenges and Opportunities in India’s GCC Office Leasing Boom

While the outlook for GCC-driven office leasing is overwhelmingly positive, there are challenges that firms must navigate:

• Talent Scarcity in Niche Skills: As demand for AI, cybersecurity, and advanced analytics rises, competition for top talent is intensifying.
• Rising Real Estate Costs: Premium office space in major cities is becoming more expensive, prompting GCCs to explore Tier 2 locations.
• Regulatory Complexity: Navigating India’s evolving labor, tax, and compliance landscape requires expert guidance.
• Hybrid Work Dynamics: Balancing remote and in-office work models is reshaping office space requirements and employee expectations.

However, these challenges also present opportunities for innovation, strategic partnerships, and differentiated employer branding. Firms that invest in talent development, flexible work models, and digital infrastructure are best positioned to thrive.

Future Outlook: GCCs and India’s Office Leasing in 2025 and Beyond

The dominance of GCCs in India’s office leasing market is set to accelerate in FY25 and beyond. Key forecasts include:

• Continued Growth: Analysts expect GCCs to lease over 65 million sq ft in 2025, with Fortune 500 companies leading new entries and expansions.
• Expansion into Tier 2 Cities: Cities like Coimbatore, Jaipur, and Ahmedabad are emerging as new GCC hubs due to lower costs and untapped talent.
• Focus on Sustainability: Green buildings and net-zero campuses will become standard for new GCC leases.
• Rise of Specialized GCCs: Professional services, R&D, and digital transformation centers will drive differentiated demand.
• Enhanced Collaboration: Partnerships between GCCs, local startups, and academic institutions will fuel innovation and upskilling.

With the right talent strategy, real estate planning, and digital investments, professional services companies can unlock immense value from India’s GCC ecosystem.

Conclusion: GCCs Redefine India’s Office Leasing and Talent Landscape

FY25 marks a watershed year for India’s commercial real estate and professional services sectors, with GCCs—led by Fortune 500 companies—dominating office leasing activity. This trend is a testament to India’s unmatched talent pool, cost advantages, and strategic location in the global business landscape.

As the market evolves, expert partners like Han Digital are essential for navigating talent challenges, building high-performing teams, and ensuring successful GCC launches and expansions. For professional services firms, the time to invest in India’s GCC opportunity is now.

For more insights and the latest updates on GCC trends, office leasing, and talent strategies in India, stay tuned to Lokmat Times Business.