As global capability centres (GCCs) continue to expand across India, Tier-2 cities are emerging as attractive hubs for growth. These cities offer a range of advantages, including lower talent acquisition costs, affordable living, improved infrastructure and strong government support.
Recent reports highlight the growing significance of GCCs in the country’s global outsourcing ecosystem and predict a 30-40% increase in the demand for GCCs in Tier-2 cities in the coming years.
The shift is being driven by a combination of factors, such as lower operational costs, access to skilled talent and higher employee retention rates in Tier-2 cities.
1. Coimbatore
Emerging as the next GCC frontier in southern India, Coimbatore is rapidly evolving into a strategic hub for core industrial and product engineering R&D, with a growing foothold in advanced software development and digital technologies. The city, which is backed by a strong industrial heritage and deep engineering expertise, is attracting keen interest from both domestic and global enterprises seeking to establish or expand their GCC operations. According to a report released by CBRE in association with the Confederation of Indian Industry (CII), Coimbatore already hosts over 60 GCCs and employs more than 75,000 professionals.
Some of the prominent GCCs operating in Coimbatore include Bosch, State Street and Amazon.
2. Kochi
Supported by the Kerala Global Capabilities Centre Framework, Kochi is rapidly emerging as a hub for AI-driven innovation, strengthened by the state government’s strong focus on frontier technologies such as quantum computing, photonics and healthcare innovation.
According to reports, the city’s Infopark hosts over 580 companies, including leading technology firms like TCS, Wipro and Cognizant. Meanwhile, a thriving ecosystem of more than 6,200 startups and innovation initiatives, such as IEDCs and LEAP, continues to drive entrepreneurial momentum. The park has over 20 GCCs with a significant focus on the IT/ITeS sector.
3. Ahmedabad
Ahmedabad has emerged as the largest GCC hub outside India’s Tier-1 cities, hosting over 35 GCCs and Global In-House Centres (GICs), more than 25 service providers and over 60 startups. Within this ecosystem, GIFT City has become a key hotspot for multinational companies specialising in innovation, technology and back-end operations. Current reports indicate that the city is home to more than 35 GCCs. For instance, FMCG giant Kraft Heinz India has chosen the city for its GCC.
Ahmedabad hosts over 25 service providers and more than 60 startups, making it the largest GCC hub outside India’s Tier-I cities. Within this ecosystem, GIFT City has emerged as a key hotspot for multinational firms focused on innovation, technology, and back-end operations. Over the past year, global players like Infineon Technologies and Technip Energies have entered the non-financial services segment, joining established names such as Google, Oracle, IBM, Capgemini, Infosys, TCS and Wipro. Sources indicate that Telus Digital is also poised to become part of this rapidly expanding ecosystem.
4. Indore
Indore’s cost-effectiveness and growing pool of skilled talent have made it an attractive destination for multinational corporations investing in the IT sector. The state has secured ₹700 crore in investments specifically for GCCs and an additional ₹5,000 crore in foreign direct investments. GCCs in Indore focus on technology services, automation, AI operations and BFSI, while sectors such as healthcare, fintech, logistics and media and entertainment are also emerging.
5. Lucknow
Lucknow is rapidly emerging as a next-generation hub for GCCs, driven by a forward-looking policy framework and strategic infrastructure investments. The Uttar Pradesh Global Capability Centres Policy 2024 offers some of the most attractive incentives in India, including land cost subsidies of 30-50%, 100% stamp duty exemption, capital and operational subsidies and payroll support, significantly reducing entry and operational costs for both domestic and multinational IT firms.
Beyond financial incentives, the city is building futuristic infrastructure to support its tech ambitions, including India’s first AI City—a 70-acre development focused on AI, machine learning and data analytics—and the sprawling 2,858-acre Mega IT City, integrating office, residential and tech zones. Complementing these is Sify Infinit Spaces’ AI-hub data centre, providing the digital backbone for data-intensive operations.
6. Mysuru
Bengaluru continues to dominate India’s GCC landscape, but nearby Mysuru—just 140 km away—is poised to benefit from a significant spillover effect. Satellite centres of Bengaluru-based GCCs are among the first to establish a presence in Mysuru, with IBM’s Client Innovation Centre already leading the way.
The city, home to over 2,800 startups, is attracting substantial investments, particularly under the EMC 2.0 initiative, which has funnelled ₹1,591 crore into 235.5 acres for semiconductors, OSAT and embedded systems. Between FY 2021-22 and FY 2025-26, Mysuru welcomed 47 new companies and witnessed 11 existing ones expand, reflecting a sharp upward trajectory—from just five new companies in FY 2021-22 to 16 in FY 2024-25.
7. Chandigarh
Chandigarh Tricity—comprising Chandigarh, Mohali and Panchkula—is rapidly emerging as a preferred destination for GCCs, thanks to a combination of skilled talent, cost efficiency, quality of life and supportive policies. The region boasts a steady supply of engineering and management graduates from institutions like Panjab University, Punjab Engineering College and NIPER, while the growing IT startup and product ecosystem further strengthens its appeal.
The Tricity has already attracted major players such as Infosys, Tech Mahindra, Teleperformance, EXO Edge, eClerx and Everise, alongside a thriving SaaS, fintech and health-tech startup ecosystem. Compared to Bengaluru or Hyderabad, it offers lower saturation, reduced attrition and a more balanced work-life culture. That apart, it provides lower real estate costs, better liveability, and a healthier environment, relative to Gurgaon and Noida. Industry forecasts suggest that Tier-2 cities will account for 20-25% of new GCC setups in India by 2027, positioning Chandigarh Tricity as a leading hub for North India.
8. Mangaluru
Mangaluru is steadily emerging as a notable hub for GCCs and smaller “nano” GCCs, hosting a mix of specialised and large IT operations. Among the smaller centres, EG/DK employs around 900 professionals, Riskonnect has roughly 250 employees, NCR Atleos has a team of 50 and Bose Professional operates with 25 staff members.
The city also houses significant IT operations, including Infosys with approximately 3,000 employees, Cognizant with around 1,500, Niveus (part of NTT Data) employing 1,000, Hexaware with 400, and Tech Mahindra with close to 200 professionals. This blend of large-scale and niche centres highlights Mangaluru’s growing prominence in India’s GCC landscape.
Beyond financial gains, the growth of GCCs in these cities fuels regional development, creating a virtuous cycle that benefits both businesses and the local economy. According to a report, GCCs in Tier-2 cities have achieved a 35% reduction in operational costs, driving a 25% boost in profitability for these centres. As more companies establish operations, infrastructure improves and quality of life rises, further enhancing the appeal of these cities for future investments.
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