Why is India the top choice for Global Capability Centers (GCCs)? It offers a skilled workforce, cost-efficient operations, and a strong business ecosystem. More than 1,500 GCCs operate in India, supporting industries like IT, finance, R&D, and customer support.

Global investors and business leaders from the USA, the Middle East, and Africa are increasingly looking at India to expand their operations. The country provides a mix of high-tech cities, infrastructure-ready hubs, and emerging business locations that cater to different industries.

In this blog, we’ll explore the best Indian cities for setting up a GCC, considering factors like talent availability, infrastructure, and government incentives. Whether you’re planning a tech-driven center in Bengaluru, a financial hub in Mumbai, or an emerging IT operation in Indore, this guide will help you make the right choice.

Key Factors for Choosing a GCC Location in India

Selecting the right city for a Global Capability Center (GCC) in India depends on several critical factors. While cost savings and talent availability are often the main drivers, other aspects like infrastructure, government incentives, and business ecosystem also play a crucial role. Here’s what businesses should consider before setting up a GCC in India:

1. Talent Availability

India produces 1.5 million engineering graduates annually, making it a global hub for tech and R&D talent. Cities with a strong pipeline of skilled professionals in IT, finance, and analytics offer long-term sustainability for GCCs.

2. Infrastructure and Connectivity

Reliable infrastructure, including IT parks, transportation, and telecom networks, is essential for a successful GCC. Metro cities like Bengaluru and Hyderabad provide well-developed business districts, while emerging cities like Indore and Ahmedabad are rapidly upgrading their infrastructure.

3. Government Policies and Incentives

Many Indian states offer tax benefits, subsidies, and SEZ (Special Economic Zone) advantages to attract GCCs. Karnataka, for example, plans to double its GCC count by 2029 through incentives like rent reimbursements and tax exemptions.

4. Cost of Operations

Setting up a GCC in India is significantly cheaper than in Western countries, but costs vary by city. While Bengaluru and Mumbai offer access to top-tier talent, their operational costs are higher. In contrast, cities like Indore and Jaipur provide cost-effective alternatives with growing IT infrastructure.

5. Quality of Life for Employees

A city’s quality of life, including cost of living, healthcare, safety, and entertainment options, influences employee satisfaction and retention. Bengaluru, Pune, and Hyderabad rank high in livability for professionals, while cities like Chennai and Indore offer a lower cost of living.

Top 7 Indian Cities for GCCs

India has a diverse range of cities that cater to different business needs. Some locations are well-established IT and financial hubs, while others are emerging destinations offering cost-effective operations. Here’s a look at the best cities for setting up a Global Capability Center (GCC).

1. Bengaluru – The Silicon Valley of India

Bengaluru is home to over 50% of India’s GCCs, making it the top destination for multinational companies. The city’s startup ecosystem, highly skilled workforce, and robust infrastructure make it an ideal choice for IT, AI, and software development GCCs.

Why Choose Bengaluru?

  • Houses major tech giants like Google, Microsoft, and Amazon
  • Access to top engineering talent from institutions like IISc and IIT
  • Thriving startup culture with a focus on AI, fintech, and SaaS
  • Strong infrastructure, including tech parks like Manyata, Bagmane, and Whitefield

Best Suited For: IT, AI/ML, software development, and cybersecurity GCCs

2. Hyderabad – The Rising Tech Powerhouse

Hyderabad has emerged as a strong competitor to Bengaluru, thanks to its business-friendly policies and rapid infrastructure growth. The city has attracted Fortune 500 companies and is a preferred destination for IT and R&D centers.

Why Choose Hyderabad?

  • Home to HITEC City and Financial District with major MNCs
  • Lower cost of operations compared to Bengaluru
  • Strong government support with TS-iPASS policy for ease of business
  • Presence of IT parks like Cyberabad and Genome Valley for biotech GCCs

Best Suited For: IT, pharma, R&D, and biotech GCCs

3. Mumbai – The Financial and Corporate Hub

Mumbai is India’s financial capital, making it a hotspot for GCCs in banking, finance, consulting, and media. The city has excellent international connectivity and a well-developed corporate ecosystem.

Why Choose Mumbai?

  • Headquarters of major financial institutions like RBI, NSE, and BSE
  • Strong presence of fintech and banking firms
  • Well-connected to global markets with a world-class airport and port infrastructure
  • Large talent pool in finance, law, and consulting

Best Suited For: BFSI (Banking, Financial Services, and Insurance), fintech, and consulting GCCs

4. Pune – The Education and IT Hub

Pune is an emerging GCC destination known for its highly educated workforce and IT parks. It offers lower real estate costs compared to Mumbai while maintaining excellent connectivity.

Why Choose Pune?

  • Presence of top universities like Symbiosis and COEP producing skilled professionals
  • Major IT hubs like Hinjewadi, Kharadi, and Magarpatta
  • Strong automotive and manufacturing ecosystem
  • Lower operational costs compared to Bengaluru and Mumbai

Best Suited For: IT, engineering, and automotive GCCs

5. Chennai – The Manufacturing and IT Powerhouse

Chennai has a strong industrial and IT presence, making it a great choice for companies looking to set up a GCC with a mix of technology and manufacturing capabilities.

Why Choose Chennai?

  • Home to automobile giants like Hyundai, Ford, and BMW
  • Strong IT sector with Tidel Park and DLF IT Park
  • Cost-effective operations with a stable workforce
  • Access to port infrastructure for global trade

Best Suited For: IT, industrial automation, and logistics GCCs

6. Delhi NCR – The Strategic Business Region

The National Capital Region (NCR), including Noida and Gurugram, is one of India’s fastest-growing corporate hubs. It is home to global IT firms, financial institutions, and e-commerce giants.

Why Choose Delhi NCR?

  • Strong presence of MNCs like Google, IBM, and Accenture
  • Business-friendly policies and tax incentives in Noida and Gurugram
  • Excellent metro connectivity and infrastructure
  • Hub for fintech, e-commerce, and legal services

Best Suited For: IT, e-commerce, fintech, and professional services GCCs

7. Indore – The Emerging IT and Business Hub

Indore is gaining attention as a cost-effective alternative to metro cities. The city has a growing IT sector and government support for new businesses.

Why Choose Indore?

  • Rapid growth in IT parks like Crystal IT Park and TCS SEZ
  • Government incentives for IT and startup ecosystems
  • Lower cost of operations compared to major metro cities
  • Skilled workforce from IIT Indore and IIM Indore

Best Suited For: IT, analytics, and operations GCCs

Conclusion: Choosing the Best Location for Your GCC in India

India’s Global Capability Center (GCC) ecosystem is thriving, with cities offering a mix of top-tier talent, infrastructure, and business-friendly policies. While Bengaluru, Hyderabad, and Mumbai remain the go-to destinations for large-scale IT and financial operations, emerging cities like Indore, Ahmedabad, and Bhubaneswar provide cost-effective alternatives with growing ecosystems.

Before choosing a location, businesses should consider:
✔ Talent availability – Does the city have the right workforce for your industry?
✔ Infrastructure & connectivity – Are there tech parks, SEZs, and transport links?
✔ Government incentives – Are tax benefits or subsidies available for GCCs?
✔ Cost efficiency – Does the location offer operational savings without compromising quality?

By strategically selecting the right city, businesses can maximize growth, reduce costs, and build a scalable GCC operation in India.

FAQs: Setting Up a GCC in India

1. Which Indian city is best for IT-based GCCs?

Bengaluru, Hyderabad, and Pune are ideal due to their strong IT talent pools, startup ecosystems, and world-class tech infrastructure.

2. What are the cost-effective alternatives to metro cities for GCCs?

Indore, Jaipur, and Bhubaneswar offer lower operational costs while still providing access to skilled talent and IT infrastructure.

3. Does the Indian government offer incentives for setting up a GCC?

Yes, many states provide tax breaks, rent subsidies, and SEZ benefits. Karnataka, Telangana, and Gujarat have some of the best policies for new GCCs.

4. How does GIFT City in Ahmedabad support financial GCCs?

GIFT City is India’s first smart financial hub offering 100% tax exemptions for the first five years, making it an attractive destination for fintech and BFSI GCCs.

5. Is Indore a good location for a GCC?

Yes, Indore is an emerging business hub with strong government support, IT parks, and lower operating costs compared to metro cities.