South India Emerges as Top Choice for GCC Offices in Early 2025



South India Emerges as Top Choice for GCC Offices in Early 2025

As the global business landscape continues to evolve, South India is rapidly cementing its position as the preferred destination for Global Capability Centres (GCCs) in early 2025. With a unique blend of world-class infrastructure, a deep talent pool, and a thriving ecosystem for professional services, cities like Bangalore, Hyderabad, and Chennai are attracting multinational corporations seeking to establish or expand their GCC operations. This article explores the key drivers behind this trend, referencing the recent insights from MSN’s recent coverage and integrating the latest industry research. We also highlight how Han Digital is uniquely positioned to support professional services companies in navigating the South Indian talent landscape for GCC success in 2025.

Table of Contents

Why South India is the Top Choice for GCCs in 2025

According to the MSN article published in June 2024, South India has emerged as the front-runner for new and expanding GCCs due to several compelling factors:

  • Abundant Skilled Talent: South India produces over 500,000 engineering and technology graduates annually, with a significant portion specializing in IT, digital, and business services.
  • Cost-Effective Operations: Compared to global and even other Indian metros, South Indian cities offer competitive real estate, labor, and operational costs.
  • World-Class Infrastructure: Robust connectivity, modern business parks, and a supportive regulatory environment make South India a seamless choice for GCCs.
  • Innovation and R&D Hubs: The region is home to leading research institutes, startups, and innovation clusters, fostering a culture of continuous improvement.

In 2024, a NASSCOM report highlighted that over 60% of new GCCs in India were established in South Indian cities, a trend expected to accelerate in 2025 as more professional services firms seek to leverage the region’s advantages.

Key Cities: Bangalore, Hyderabad, and Chennai Lead the Way

Bangalore (Bengaluru) remains the undisputed leader, often dubbed the “Silicon Valley of India.” The city hosts over 1,500 GCCs as of 2024, with major global firms like Accenture, Goldman Sachs, and Shell expanding their presence. Bangalore’s vibrant startup ecosystem and proximity to top engineering colleges make it a magnet for digital transformation and R&D-led GCCs.

Hyderabad is fast catching up, thanks to proactive government policies, world-class IT parks like HITEC City, and a reputation for high-quality tech talent. According to a recent EY report, Hyderabad saw a 28% year-on-year increase in new GCC setups in 2023-2024, with professional services and BFSI sectors leading the charge.

Chennai offers a unique blend of IT, automotive, and manufacturing expertise, making it attractive for diversified GCC operations. The city’s strong educational ecosystem and cost competitiveness are key draws for global firms.

Other emerging hubs like Coimbatore and Kochi are also gaining traction, especially for niche and mid-sized GCCs seeking talent beyond the metros.

Talent Ecosystem: The South Indian Advantage

The talent ecosystem in South India is a primary driver for GCC growth in 2025. Here’s why:

  • Education Excellence: South India is home to premier institutions like the Indian Institute of Science (IISc), IIT Madras, and IIIT Hyderabad, ensuring a steady pipeline of highly skilled professionals.
  • Diversity & Inclusion: Cities in South India boast a cosmopolitan workforce, with a strong focus on gender diversity and inclusive hiring practices, aligning with global standards.
  • Digital Skills Readiness: According to a 2024 McKinsey study, South Indian talent leads the nation in AI, cloud, cybersecurity, and data analytics skills—core to modern GCCs.
  • Low Attrition Rates: Compared to other regions, South Indian cities have lower attrition rates, ensuring stability for long-term GCC operations.

These factors make South India the ideal location for professional services companies aiming to build resilient, future-ready GCCs in 2025 and beyond.

Infrastructure and Innovation: Building the Future of GCCs

South India’s infrastructure is tailored for the needs of global organizations:

  • State-of-the-Art Business Parks: IT corridors like Bangalore’s Outer Ring Road, Hyderabad’s HITEC City, and Chennai’s OMR house some of the world’s most advanced office spaces, with built-in sustainability and technology features.
  • Smart City Initiatives: Government-driven smart city projects are enhancing urban mobility, digital connectivity, and quality of life for employees.
  • Innovation Ecosystem: South India is a hub for R&D, with over 40% of India’s tech startups based here, according to Startup India. This fosters cross-pollination of ideas and accelerates digital transformation for GCCs.

Professional services firms establishing GCCs in South India benefit from plug-and-play infrastructure, access to innovation clusters, and a regulatory environment that supports ease of doing business.

Professional Services Companies: Establishing GCCs in South India

For professional services companies—including consulting, legal, finance, and technology—South India offers a compelling value proposition for GCCs:

  • Access to Specialized Talent: South Indian cities are known for their deep pools of finance, legal, HR, and digital transformation professionals.
  • Scalable Operations: The region’s mature vendor ecosystem and flexible office spaces enable rapid scaling of GCC operations.
  • Cost Optimization: Lower costs for talent and real estate, combined with high productivity, deliver superior ROI for global firms.
  • Client Proximity: Many Fortune 500 clients have existing operations or partners in South India, facilitating collaboration and co-innovation.

As the MSN article notes, the region’s “unique blend of talent, cost, and infrastructure” is driving a new wave of GCC investments from global professional services giants in 2025.

Han Digital: Your Partner in GCC Talent Strategy

Establishing a successful GCC in South India requires more than just infrastructure—it demands a deep understanding of the talent market and access to senior leadership networks. This is where Han Digital stands out.

Han Digital’s Unique Value Proposition

  • Market Intelligence: Han Digital leverages proprietary research and real-time data to map talent availability, compensation trends, and skill gaps across South Indian cities.
  • Leadership Connections: With established relationships with senior leaders across industries, Han Digital facilitates strategic hiring and leadership onboarding for new GCCs.
  • Customized Talent Solutions: Whether it’s building a digital COE or a finance shared services hub, Han Digital designs talent strategies tailored to each client’s GCC vision.
  • End-to-End Support: From workforce planning to employer branding and diversity hiring, Han Digital partners with professional services companies throughout their GCC journey in South India.

In a recent engagement, Han Digital supported a global consulting firm in setting up a 1,000+ member GCC in Bangalore, achieving a 30% faster time-to-hire and 20% lower attrition rate than industry benchmarks.

Han Digital’s deep market insight and leadership connections make it the go-to partner for professional services companies aiming for GCC success in South India in 2025.

The South Indian GCC landscape is set for rapid evolution in 2025. Here are the top trends to watch:

  • AI and Automation: GCCs will increasingly focus on AI, machine learning, and automation, with South India’s talent leading the charge.
  • Hybrid Work Models: Flexible and

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