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Small cities, towns to drive next round of GCC expansion

Economic Times · 10d

The expansion of Global Capability Centers (GCCs) in non-metro locations is set to be a significant trend in India in the coming years. Tier-2 and tier-3 cities are expected to experience a growth rate of 15-20% by 2025. This growth can be attributed to factors such as a growing tech talent pool, favorable government policies, operational efficiencies, and lower costs of living. Ahmedabad, Kochi, Coimbatore, and Chandigarh are among the cities expected to benefit from this expansion. These locations offer a lower cost of living, enhanced quality of life, and a less competitive talent market. Non-metro cities already house over a million tech professionals, particularly in fields like AI, cybersecurity, and big data. The GCC industry in India currently employs over 1.9 million people and is expected to hire over 2.2 million by 2026. In order to promote the setting up of GCCs in smaller cities and towns, the Indian government is working on a policy to provide incentives. Challenges that need to be addressed in non-metro locations include infrastructure and connectivity limitations. However, as the infrastructure improves, these cities have the potential to become strategic GCC hubs.