As India’s Global Capability Centres (GCCs) continue to evolve into strategic value drivers
for global enterprises, the next phase of their growth may be unfolding beyond the
traditional metros. Tier 2 cities, once primarily viewed as talent hubs, are now emerging as
competitive destinations in their own right.
Looking forward, technology companies are expected to lead this shift. CBRE anticipates a
significant rise in Global Capability Centres being established in select Tier 2 cities. This
move is driven by a combination of factors: an abundance of skilled talent, improving
infrastructure, and evolving occupier strategies that seek diversification beyond the main
gateway markets.
A Market in Transition
India’s office sector remains resilient, with office leasing activity reaching 18 million sq. ft
in Q1 2025*. GCCs are playing a key role in driving absorption across important markets.
With healthy supply growth and a strong pipeline of under-construction projects —
particularly in investment-grade tech parks — the momentum is expected to continue
throughout the year.
While cities like Bengaluru, Hyderabad, NCR, and Mumbai continue to lead in demand,
cities such as Pune and Chennai are also gaining traction. This trend, spurred by
high-quality infrastructure and a skilled talent pool, is expected to extend to Tier 2
markets, creating new demand in emerging urban hubs.
Why Tier 2 Cities?
Tier 2 cities are emerging as the next growth hubs, offering a compelling combination of
affordability, accessibility, and long-term opportunities. As companies shift to hybrid
models and seek more diverse talent, these cities are becoming pivotal players in the GCC
landscape.
● Strategic Advantage: With a balance of cost-effectiveness and growth potential,
Tier 2 cities are ideal for businesses looking to expand.
● Innovative Infrastructure: These cities are equipped with tech-driven, sustainable
facilities that support businesses in a digital-first world.
● Talent Access: A young, dynamic workforce and growing educational institutions
ensure a continuous supply of skilled talent.
● High-Quality Amenities: World-class amenities foster a healthy work-life balance,
enhancing employee engagement and satisfaction.
Tier 2 cities are no longer just cost-effective alternatives; they are transforming into
innovation and growth hubs, making them an essential part of the future of Global
Capability Centres.
The Talent Equation
The success of this transition depends on the continued availability of skilled talent in
these emerging markets. To ensure sustainability, companies are expected to strengthen
ties with educational institutions, invest in upskilling programs, and build ecosystems
capable of supporting large-scale transformation.
This model has already proven successful in Tier 1 cities, and Tier 2 markets now offer the
opportunity to replicate — and localise — this success. As GCCs move to these cities, talent
development will be key to their sustained growth.
See also: Tech Innovations in Business 3200319740
The Road Ahead
The evolution of Global Capability Centres from service centres to strategic innovation
engines is reshaping India’s office market. In the coming years, Tier 2 cities will not just be
participants in this transformation — they will be leading it.
With a supportive policy environment, a young and talented workforce, and rising private
sector interest, these markets are set to become the next vital nodes in India’s global
innovation grid.
CBRE is committed to monitoring this shift, helping occupiers and investors navigate the
increasingly distributed, future-ready office landscape.
CBRE – A Trusted Partner For GCCs In India
With deep-rooted expertise and a future-focused approach, CBRE has played a pivotal role
in shaping India’s Global Capability Centre (GCC) landscape. We’ve supported the set-up of
over 400 GCCs across the country — from strategy and location advisory to build-out,
talent planning, and ongoing optimisation.
Our strength lies in delivering end-to-end solutions tailored to the unique needs of global
enterprises. Whether you’re entering a Tier 1 market or exploring the potential of emerging
Tier 2 cities, CBRE brings unmatched insights, local intelligence, and global best practices
to the table.
