Bangalore vs Indore for GCCs: Cost, Talent, Infrastructure, and More

The Global Capability Center (GCC) market in India is projected to hit $60 billion by 2025, with over 1,900 centers expected to be operational. Enterprises and multinational corporations are now exploring new cities that balance cost, talent, and scalability. 

While Bangalore continues to dominate, hosting nearly 40% of India’s GCCs thanks to its strong tech ecosystem and deep talent pools, fresh contenders are rising.

Indore, in particular, is catching serious attention. With operational costs 30–40% lower than metro cities and a fast-improving infrastructure, it offers a compelling alternative for companies focused on long-term growth. 

But is cost-saving the only factor driving this shift? 

In this post, we’ll break down why Indore is becoming a magnet for GCCs, what advantages it offers beyond just lower costs, and which major players are leading the way.

Bangalore vs Indore for GCC Setup: Detailed Comparison

Talent Availability: Bangalore vs Indore

Bangalore offers a larger and more experienced talent pool for GCCs than Indore.

The city has over 1.5 million tech professionals and produces 100,000+ engineering graduates annually from institutes like IISc and IIIT Bangalore. Most professionals here have experience working in GCCs set up by companies like Goldman Sachs and Walmart, ensuring familiarity with global standards.

Indore, while smaller, is growing steadily. It produces around 30,000 engineering graduates each year, with a workforce that demands lower salaries and shows 20–30% lower attrition than metro cities. Companies looking for long-term retention and cost advantages find Indore attractive.

Key Aspects:

Government Policies and Incentives: Bangalore vs Indore

Bangalore offers stable but saturated support for GCC setups, while Indore presents fresh opportunities with strong state-level incentives.

Bangalore has long benefited from Karnataka’s progressive IT policies.

• The Karnataka Digital Economy Mission (KDEM) supports tech investments, especially in emerging technologies.
• The city hosts several SEZs, offering tax benefits for exports.
• However, incentives have matured, and with the surge in demand, real estate and operational costs have increased, reducing the net benefit for new GCC entrants.
  

Indore, on the other hand, is actively promoting new investments:

• Under the Madhya Pradesh Industrial Promotion Policy, companies setting up tech and IT facilities in Indore receive land subsidies, tax rebates, and fast-track approvals.
  
• The city is part of the Delhi-Mumbai Industrial Corridor (DMIC), enhancing its strategic importance.
  
• The government is focusing on making Indore a Tier-2 tech hub, offering special incentives for early movers, including single-window clearances and power tariff rebates.
  

Key Aspects:

Quality of Life: Bangalore vs Indore

Bangalore offers cosmopolitan living with higher costs, while Indore provides a cleaner, more affordable lifestyle with growing urban amenities.

Bangalore is known for its vibrant culture, global cuisine, international schools, and top hospitals.

• It has consistently ranked among the best cities in India for expats and tech workers.
  
• However, the cost of living is among the highest in India, with real estate prices, school fees, and healthcare costs significantly above the national average.
  
• Traffic congestion and rising pollution levels are major concerns that affect day-to-day life.
  

Indore, by contrast, has been awarded as the cleanest city in India for six consecutive years under the Swachh Survekshan Awards.

• It offers lower living costs, with affordable housing, schools, and healthcare services.
  
• The city’s quality of life has improved with better urban planning, reduced traffic issues, and a strong focus on cleanliness and sustainability.
  
• Although Indore’s entertainment and cultural scenes are smaller compared to Bangalore, they are steadily growing.
  

Key Aspects:

Existing GCC Ecosystem Comparison at a Glance

Bangalore has a highly developed and dense GCC ecosystem, while Indore is in the early stages of building a strong foundation for future growth.

Bangalore is often called the “GCC Capital of India.”

• It hosts over 500+ GCCs from companies like Goldman Sachs, Shell, Mercedes-Benz, Target, and Wells Fargo.
  
• The ecosystem supports everything from BFSI and retail to healthcare and automotive sectors.
  
• Companies benefit from a mature network of service providers, consultancy firms, and innovation hubs, making it easier to scale and diversify operations.
  

Indore, meanwhile, is a rising player:

• Major companies like TCS and Infosys have already set up large campuses here, laying the groundwork for a tech ecosystem.
  
• The Madhya Pradesh government is offering special incentives to attract IT and GCC investments.
  
• While the number of GCCs is still limited, the lower competition for talent, affordable expansion options, and government push are positioning Indore as a strong future alternative.
  

Key Aspects: 

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Scalability and Future Prospects: Bangalore vs Indore

Bangalore remains a strong choice for immediate large-scale expansion, while Indore offers better long-term potential with lower saturation risks.

Bangalore provides proven scalability for GCCs.

• The city already supports multiple centers with 5,000+ employees each.
  
• It has access to a steady supply of senior leadership talent, making it easier to expand teams across multiple functions like R&D, cybersecurity, finance, and HR.
  
• However, high competition for resources often drives up salaries and attrition rates, making sustained hyper-growth costly over time.
  

Indore, although still developing, offers longer-term scalability advantages:

• Companies can secure larger land parcels and build campuses at much lower costs.
  
• The talent pool, though smaller today, is expanding steadily as new colleges and tech programs are set up.
  
• With government focus on positioning Indore as a major IT and services hub, companies entering early can benefit from lower attrition rates, better employee loyalty, and less operational congestion compared to Bangalore.
  

Key Aspects

Final Verdict: Bangalore or Indore for Your GCC?

Choosing between Bangalore and Indore for your GCC depends on whether you prioritize immediate access to a mature ecosystem or long-term cost savings.
Bangalore offers deep talent pools, faster scalability, and an established network but at higher costs. Indore offers cleaner living, lower operational expenses, and stronger government incentives for future-focused companies willing to invest in gradual growth.

Quick Decision Summary:

• Choose Bangalore if you need large teams and rapid scale today — even if it costs more.
• Choose Indore if you are planning a 5–10 year growth roadmap with better employee retention and lower setup costs.

India is expected to host 1,900+ GCCs by 2025 — choosing the right city now will decide how much you benefit from that boom.

FAQs

What are the major advantages of setting up a GCC in Indore?

Indore offers 30–40% lower operational costs, government incentives, lower attrition rates, and has been ranked the cleanest city in India for six consecutive years.

Is talent availability a major challenge in Indore compared to Bangalore?

Yes, but it depends on your scale.
Bangalore has a larger experienced talent pool today, while Indore’s talent base is expanding steadily with new educational initiatives and IT parks.

How do real estate and office rental costs compare between Bangalore and Indore?

Office space rentals are ₹90–₹140 per sq ft in Bangalore and ₹40–₹60 per sq ft in Indore, making Indore significantly cheaper for GCC setups.

What incentives are available for GCCs in Indore?

Madhya Pradesh offers land subsidies, tax rebates, single-window clearances, and power tariff incentives for companies setting up IT and tech centers in Indore.

Are there existing GCCs in Indore?

Yes. Companies like TCS and Infosys have already established major campuses, signaling strong future potential for GCC growth in Indore.

How does infrastructure compare between Bangalore and Indore?

Bangalore has a mature infrastructure with metro connectivity and a major international airport.
Indore’s infrastructure is improving rapidly with a new metro project, better roads, and participation in the Delhi-Mumbai Industrial Corridor (DMIC).