Leasing by Global Capability Centres (GCCs) in India has surged by 17% in FY24. This substantial growth underscores India's growing importance as a hub for global corporations seeking to establish and expand their back-office operations. The increased leasing activity is primarily driven by the need for cost-efficient locations and access to a large, skilled workforce.
Several cities, including Bangalore, Hyderabad, and Pune, have emerged as prime destinations for GCCs. These cities offer robust infrastructure, favourable business environments, and a rich talent pool. Bangalore, often referred to as the Silicon Valley of India, continues to lead in attracting GCCs due to its advanced IT infrastructure and established ecosystem of tech firms and start-ups.
The rise in leasing activity also highlights a broader trend of global companies looking to diversify their operations and reduce dependency on single regions. By establishing GCCs in India, companies can mitigate risks associated with geopolitical tensions, economic downturns, and other disruptions in their home countries. Additionally, the favourable exchange rates and government incentives further bolster India?s appeal.
The leasing trend is expected to continue its upward trajectory, with more companies planning to set up GCCs to leverage India's strategic advantages. The availability of Grade A office spaces and the proactive measures taken by real estate developers to cater to the specific needs of these centres are pivotal factors contributing to this growth.
In conclusion, the 17% increase in GCC leasing in India during FY24 is a testament to the country's strategic importance in the global business landscape. With ongoing investments in infrastructure and talent development, India is well-positioned to attract more GCCs in the coming years, driving further economic growth and job creation.
