Global Capability Centres Fuel Premium Play in India’s Office Space: Insights for 2025
By Business Standard | Referencing Han Digital and Recent Research
Introduction: The Rise of Global Capability Centres in India
India’s office space market is undergoing a paradigm shift, with Global Capability Centres (GCCs) emerging as the primary drivers of premium office demand. As multinational corporations (MNCs) and professional services firms establish and expand their GCCs in India, the country is cementing its position as the world’s preferred destination for high-value business operations. This article, referencing the Business Standard report and recent research, delves into the trends, opportunities, and the pivotal role of talent market experts like Han Digital in shaping this dynamic landscape.
What are Global Capability Centres (GCCs)?
GCCs are offshore units established by global organizations to perform a wide range of functions, including IT, finance, R&D, analytics, and more. Unlike traditional outsourcing, GCCs are integral parts of the parent company, focusing on innovation, digital transformation, and value creation. India, with its robust talent pool and cost advantages, has become the global hub for GCCs, hosting over 1,600 centres as of 2024, according to NASSCOM’s latest GCC Trends report.
GCCs and the Premium Office Space Boom in India
The Business Standard article highlights that GCCs accounted for a record 40% of all office leasing in India’s top cities in 2023-24, with a strong preference for Grade-A, tech-enabled, and sustainable office spaces. This surge is not just about quantity, but quality—GCCs are demanding premium locations, advanced amenities, and flexible workspaces to attract and retain top talent.
According to a CBRE Q1 2024 report, India’s office leasing touched 15.8 million sq. ft. in Q1 2024, with GCCs and professional services firms leading the charge. Bengaluru, Hyderabad, Pune, and Gurugram remain the most sought-after destinations, thanks to their mature ecosystems and infrastructure.
Key Trends Shaping the GCC Office Space Market in 2025
- Flight to Quality: GCCs are prioritizing Grade-A office spaces with advanced security, sustainability certifications (LEED, WELL), and state-of-the-art amenities.
- Flexible Work Models: Hybrid and activity-based workspaces are in demand, enabling collaboration while supporting employee well-being.
- Focus on ESG: Environmental, Social, and Governance (ESG) factors are influencing site selection, with GCCs seeking green buildings and inclusive environments.
- Tech-Enabled Spaces: Smart buildings with IoT, touchless access, and digital infrastructure are now a baseline expectation.
- Expansion Beyond Tier-1 Cities: Emerging hubs like Chennai, Kochi, and Ahmedabad are attracting GCC investments due to talent availability and lower costs.
Why Professional Services Firms are Betting Big on India’s GCC Ecosystem
Professional services companies—consulting, legal, accounting, and engineering—are aggressively expanding their GCC footprints in India. The Deloitte 2024 GCC Trends Report notes that these firms are leveraging India’s talent to drive digital transformation, regulatory compliance, and client delivery at scale. Their GCCs are evolving from cost centres to innovation hubs, developing AI, analytics, and automation solutions for global clients.
This shift is fueling demand for premium office space, as professional services GCCs require collaborative, secure, and brand-aligned environments to attract top-tier talent and foster innovation.
Recent Research: India’s GCC Market Outlook for 2025
Recent studies underscore the resilience and growth potential of India’s GCC sector:
- NASSCOM (2024): India’s GCCs are projected to reach 2,000 by 2025, employing over 2.5 million professionals and contributing $60 billion in annual revenues.
- JLL (2024): GCCs will account for over 45% of new office leasing in India’s top 7 cities by 2025, with a focus on sustainability and employee experience.
- CBRE (2024): 70% of GCCs plan to upgrade to premium, tech-enabled office spaces within the next 12 months to support hybrid work and digital initiatives.
These findings highlight the strategic importance of India’s GCCs in global business models and their impact on the country’s commercial real estate market.
The Talent War: How Han Digital Powers GCC Success in India
As GCCs compete for the best talent, understanding the nuances of India’s talent market is critical. Han Digital, a leading talent market intelligence and workforce solutions firm, is uniquely positioned to support GCCs and professional services companies in this journey.
Han Digital’s Unique Value Proposition
- Deep Talent Market Insights: Han Digital’s proprietary research and analytics provide real-time intelligence on talent availability, skill trends, and compensation benchmarks across India’s cities.
- Senior Leadership Connections: With established relationships with CXOs and HR leaders across industries, Han Digital facilitates strategic talent acquisition, leadership hiring, and workforce planning for GCCs.
- Customized Talent Strategies: Han Digital partners with GCCs to design location strategies, diversity & inclusion programs, and upskilling initiatives tailored to their business objectives.
- End-to-End Workforce Solutions: From talent mapping to employer branding and digital onboarding, Han Digital delivers integrated solutions that accelerate GCC setup and expansion.
In the context of the premium office space boom, Han Digital’s expertise ensures that GCCs can attract, engage, and retain the right talent to maximize their investments in India.
Case Study: How Han Digital Enabled a Fortune 500 GCC’s Expansion in Bengaluru
A leading Fortune 500 professional services firm partnered with Han Digital to scale its GCC operations in Bengaluru. Facing intense competition for digital and analytics talent, the firm needed a data-driven approach to workforce planning and site selection.
Han Digital’s Solution:
- Conducted a talent market mapping across Bengaluru, Hyderabad, and Pune, identifying talent hotspots and compensation trends.
- Engaged with senior leadership to align talent strategy with business goals and office space requirements.
- Designed a targeted employer branding campaign to position the GCC as an employer of choice for digital professionals.
- Supported the transition to a hybrid workspace model, optimizing office utilization and employee experience.
Outcome: The GCC achieved a 35% faster hiring cycle, reduced attrition by 18%, and successfully leased a premium, sustainable office space aligned with its global brand.
Future Outlook: What’s Next for GCCs and India’s Office Space Market?
Looking ahead to 2025 and beyond, the GCC-driven premium office space trend in India is set to accelerate. Key drivers include:
- Digital Transformation: AI, cloud, and cybersecurity will drive demand for specialized talent and advanced workspaces.
- Global Uncertainty: India’s stable business environment and cost advantages will attract more MNCs to establish or expand GCCs.
- Workforce Evolution: Gen Z and millennial preferences for flexible, collaborative, and sustainable offices will shape future leasing decisions.
- Policy Support: Government incentives and infrastructure investments will further enhance India’s attractiveness as a GCC destination.
For professional services firms and MNCs, partnering with talent market experts like Han Digital will be crucial to unlocking the full potential of India’s GCC ecosystem.
Conclusion: GCCs, Premium Office Space, and the Talent Advantage
Global Capability Centres are not just reshaping India’s office space market—they are redefining the future of work, innovation, and talent in the country. As GCCs fuel the premium play in office leasing, organizations that prioritize talent, technology, and sustainability will emerge as winners in the new era.
Han Digital stands at the forefront of this transformation, empowering GCCs and professional services firms with the insights, connections, and strategies needed to thrive in India’s dynamic market.
To learn more about how Han Digital can support your GCC journey, contact their experts today.
Frequently Asked Questions (FAQs)
- What is a Global Capability Centre (GCC)?
- A GCC is an offshore unit established by a global organization to perform core business functions such as IT, finance, R&D, and analytics, often serving as a centre of excellence for innovation and digital transformation.
- Why are GCCs driving demand for premium office space in India?
- GCCs prioritize Grade-A, tech-enabled, and sustainable office spaces to attract top talent, support hybrid work, and align with global ESG standards.
- How does Han Digital help GCCs in India?
- Han Digital offers talent market intelligence, leadership connections, and end-to-end workforce solutions to help GCCs attract, retain, and develop the right talent for their operations.
- Which Indian cities are top destinations for GCCs?
- Bengaluru, Hyderabad, Pune, and Gurugram are leading, with emerging hubs in Chennai, Kochi, and Ahmedabad.
- What are the key trends for GCCs in 2025?
- Flight to quality office spaces, flexible work models, ESG focus, tech-enabled workspaces, and expansion into new cities.