Companies are also evaluating Tier II cities to set up GCCs and expand operations, encouraged by the availability of talent due to the return migration seen during the pandemic. “While cost arbitrage in tier-II cities has always been an advantage for emerging hubs, the recent push for infrastructure development in these cities has also contributed to the advantage of non-metro cities,” he adds.
The report points out that by 2025, it is estimated that there will be 1,900 total GCCs operating in the country out of the existing 1,580. During this period, GCC leasing activity is expected to account for 35-40% of total office leasing. Globally, among the most emerging GCC hubs, including Brazil, Chile, China, the Czech Republic, Hungary, the Philippines and Poland, India scores best in terms of cost and talent attraction, making the country the most sought-after destination for the GCC.
The research also predicts that the top six cities – Delhi, Bangalore, Mumbai, Chennai, Pune, Hyderabad – are most likely to see a strong set of new developments in growing micro markets between 2023 and 2025, resulting in the creation of new activity hubs. Planned projects will focus on providing GCCs with high-quality office supplies for investment, allowing them to grow and upgrade as needed.
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