Rapid Expansion Driven by Tier-1 and Tier-2 Cities
India is on track to exceed 2,100 Global Capability Centers (GCCs) by the financial year 2028, according to a new report by Vestian. The sector is projected to grow at an annual rate of 8 percent, with an average of 150 new centers being established each year. This reinforces India’s position as a global leader in GCC development, currently hosting nearly 1,700 centers — more than half of the world’s total of 3,200.
The growth is particularly concentrated in Tier-1 cities. Bengaluru stands at the forefront with 487 GCCs, accounting for 29 percent of the national total. Hyderabad follows with 273 centers, closely trailed by the National Capital Region (NCR) with 272. Other significant contributors include Mumbai (12 percent), Pune (11 percent), and Chennai (10 percent), further consolidating India’s urban dominance in this sector.
Emerging Tier-2 Cities Gain Traction
While Tier-1 cities remain the primary hubs, a shift toward Tier-2 cities is gaining momentum. This movement is supported by the 2025 Union Budget, which outlines a national framework aimed at incentivizing the expansion of GCCs in developing urban markets. The push toward decentralization is expected to broaden the geographic distribution of these centers, reducing pressure on saturated Tier-1 regions while promoting regional growth.
Analysts note that Tier-2 cities are becoming increasingly attractive due to improved infrastructure, rising talent availability, and government support. This could help diversify the GCC footprint and improve access to untapped labor markets.
IT and BFSI Sectors Lead the Charge
India’s GCC landscape is heavily dominated by the IT and IT-enabled services (ITeS) sector, which holds a 49 percent share. The Banking, Financial Services, and Insurance (BFSI) sector follows with 17 percent. Together with healthcare, consulting, engineering, and telecom, these industries account for the majority of India’s GCC presence, showcasing the country’s diverse service portfolio and advanced capabilities.
GCCs are no longer seen merely as cost-cutting solutions. They have matured into strategic hubs that drive innovation, operational excellence, and digital transformation. India’s competitive costs, skilled workforce, and business-friendly policies make it an ideal location for these centers.
Strategic Tools Guide Market Entry
According to Vestian CEO Shrinivas Rao, India’s major office markets offer a compelling value proposition for companies looking to establish or expand GCC operations. However, he emphasizes the importance of location strategy, noting that success depends heavily on choosing the right city aligned with business goals.
Vestian’s proprietary GCC Market Entry Index has been introduced as a strategic tool to help businesses make data-driven decisions about where to set up operations. It evaluates factors such as talent availability, infrastructure readiness, and regulatory support to guide companies in identifying optimal sites.
