If you are researching cities to set up a GCC in India, you are not looking for city branding or generic IT hub rankings. You are trying to answer a far more material question: where will this GCC deliver predictable returns over the next five to ten years. India already hosts one of the largest and most mature GCC ecosystems in the world, but performance varies sharply by city. Location directly influences talent stability, operating costs, hiring velocity, and how quickly teams reach steady-state productivity.
The scale of the opportunity is well established. India is home to more than 1,600 global capability centers, employing over 1.6 million professionals, and accounting for nearly 50 percent of the world’s GCCs, according to NASSCOM.
What this statistic does not reveal is the dispersion in outcomes across cities. Two GCCs with the same mandate and headcount can experience radically different cost curves and attrition patterns depending on where they are set up. That is why evaluating Cities to Set Up a GCC in India requires an economic and talent-behavior lens, not a popularity-based one. This guide is written to help decision-makers make that choice with clarity and confidence.
Why city choice determines GCC success
Choosing among cities to set up a GCC in India directly affects cost control, talent continuity, and execution speed. While mandate and operating model define what a GCC does, the city determines how efficiently it can do it over time.
Cost and attrition move together
Cities with intense hiring competition tend to experience faster wage inflation and higher attrition. This increases replacement hiring costs and slows delivery as teams constantly rebalance. In contrast, lower-competition cities to set up a GCC in India typically offer steadier wage growth and single-digit attrition, creating more predictable total cost of ownership over a multi-year horizon.
Talent stability drives execution quality
Attrition is not just a people metric. It directly impacts knowledge retention and delivery quality. GCCs operating in stable talent markets benefit from longer tenures, stronger domain ownership, and fewer execution disruptions. This is one of the most consistent advantages seen in well-chosen cities to set up a GCC in India.
Faster hiring improves time to productivity
In saturated markets, hiring delays and offer dropouts slow down team formation. Cities with moderate competition allow GCCs to hire faster and ramp teams in a more structured way. Faster time to productivity often becomes a hidden but material advantage when evaluating cities to set up a GCC in India.
How We Ranked Cities
We evaluated cities on:
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Fully loaded cost (salary + infra + compliance)
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Talent depth by mandate (engineering, data, ERP, SRE)
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Attrition & wage volatility
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Hiring velocity
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5-year ROI predictability
Tier-1 vs Tier-2 India: The Reality Check
| Factor | Tier-1 Cities | Tier-2 Cities |
|---|---|---|
| Fully loaded cost | High & rising | 30–55% lower |
| Attrition | 18–25% | 7–11% |
| Hiring competition | Extreme | Moderate |
| Knowledge retention | Medium | High |
| 5-year ROI | Flattening | Compounding |
Top Cities to Set Up a GCC in India (2026 Rankings)
Indore — Best Overall ROI (Scale + Stability)
Indore has emerged as one of the most cost-efficient cities to set up a GCC in India, particularly for enterprises focused on scale, stability, and predictable execution. The city offers a broad engineering talent pool with strengths in application development, QA, automation, and shared services.
Hiring in Indore is fast and reliable. Competition is moderate, offer acceptance rates are high, and teams can be built quickly without excessive counteroffer risk. Attrition typically stays in the 8 to 10 percent range, enabling stronger knowledge retention and lower replacement costs over time.
Fully loaded costs generally range from 28,000 to 40,000 USD per engineer per year, with wage inflation remaining manageable as headcount grows. This cost stability is a key reason Indore consistently performs well when comparing cities to set up a GCC in India over a five-year horizon.
Indore is best suited for platform engineering, QA and test automation, fintech and BFSI technology, and scaled shared services. For enterprises seeking a primary delivery hub with compounding ROI, it remains one of the most defensible cities to set up a GCC in India.
Best for: Platform engineering, QA automation, fintech/BFSI tech, shared services
Fully loaded cost: ~$28k–40k / engineer / year
Attrition: ~8–10%
Hiring speed: Very fast
Coimbatore — Best for Core Engineering & ERP
Coimbatore is one of the most stable cities to set up a GCC in India for enterprises that rely on deep engineering ownership and long system lifecycles. The city has a strong base of technically grounded engineers, shaped by its manufacturing and industrial ecosystem.
Hiring competition in Coimbatore is moderate, with high offer acceptance and longer average tenures. Attrition commonly remains in the 7 to 9 percent range, making it easier to retain domain knowledge and reduce dependency on continuous lateral hiring. This stability is particularly valuable for ERP and core platform teams.
Fully loaded costs typically fall between 30,000 and 42,000 USD per engineer per year, with wage growth remaining predictable over time. Among cities to set up a GCC in India, Coimbatore consistently performs well on retention-adjusted productivity.
Coimbatore is best suited for SAP, Oracle, and Dynamics ERP platforms, core product engineering, industrial technology, and R&D teams that benefit from continuity and systems thinking.
Best for: Core product engineering, SAP/Oracle/D365, industrial tech, R&D
Fully loaded cost: ~$30k–42k
Attrition: ~7–9%
Kochi — Best for Cloud, Data & Reliability
Kochi has steadily positioned itself as one of the more balanced cities to set up a GCC in India for cloud and data-driven mandates. The city combines a mature technology ecosystem with strong English proficiency and global exposure.
Talent competition is lower than Tier 1 cities, allowing GCCs to hire steadily without aggressive bidding. Attrition typically ranges from 8 to 11 percent, supporting better team continuity compared to larger metros. Hiring timelines are generally shorter, helping teams reach productivity faster.
Fully loaded costs usually range from 30,000 to 45,000 USD per engineer per year. While slightly higher than some Tier 2 peers, the cost is offset by depth in cloud platforms and data engineering. This balance makes Kochi a strong contender among cities to set up a GCC in India.
Kochi is best suited for AWS, Azure, and GCP engineering, data platforms, analytics, and SRE teams that require reliability and long-term ownership.
Best for: Cloud (AWS/Azure/GCP), data engineering, analytics, SRE
Fully loaded cost: ~$30k–45k
Attrition: ~8–11%
Tier-1 Benchmarks (When You Need Brand or Scale Fast)
Even as Tier-2 hubs gain ground, Tier-1 metros continue to play a role in specific GCC strategies. When evaluating cities to set up a GCC in India, Bangalore and Hyderabad are often used as reference points rather than default choices.
Bangalore: Depth and Leadership Density
Bangalore remains unmatched in terms of sheer talent depth, especially for niche skills, senior architects, and experienced GCC leaders. The ecosystem supports rapid access to specialized capabilities and mature leadership talent.
However, it is also the most expensive and volatile option among cities to set up a GCC in India. Attrition commonly exceeds 20 percent, wage inflation is persistent, and hiring competition is intense. Bangalore is best used selectively, typically for leadership, innovation pods, or rare skill clusters rather than large-scale delivery.
Hyderabad: Enterprise Scale with Rising Costs
Hyderabad offers strong infrastructure, large campuses, and a deep enterprise technology base. It is often seen as a more structured alternative to Bangalore, particularly for large, process-driven programs.
That said, costs and competition have risen steadily. Attrition and hiring pressure are now closer to Tier-1 norms, reducing long-term cost advantages. Among cities to set up a GCC in India, Hyderabad works well when enterprises need Tier-1 scale with slightly better operational predictability than Bangalore.
In practice, Tier-1 cities are most effective as complements, not anchors, within a broader GCC footprint strategy.
City-Wise Comparison Matrix
| City | Cost Efficiency | Talent Depth | Attrition | Hiring Speed | Best Use |
|---|---|---|---|---|---|
| Indore | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | Scale & ops |
| Coimbatore | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ | Core engineering |
| Kochi | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ | Cloud & data |
| Bangalore | ⭐⭐ | ⭐⭐⭐⭐⭐ | ⭐⭐ | ⭐⭐ | Niche skills |
| Hyderabad | ⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐⭐ | Enterprise |
Which City Fits Your GCC Mandate?
The most effective GCCs do not select a single city in isolation. They design a footprint that aligns each mandate with the cities to set up a GCC in India that can support it most efficiently. This approach reduces risk, improves retention, and keeps long-term economics under control.
Product platforms, QA automation, and shared services benefit from cities that offer fast hiring and stable talent pools. Tier-2 hubs with moderate competition allow these teams to scale without constant churn. For ERP, manufacturing technology, and R&D mandates, cities with strong systems thinking and long average tenures perform better than high-churn metros.
Cloud, data, and reliability engineering often sit between these two extremes. They require global exposure and advanced skills but still benefit from cities where teams can stabilize and retain platform knowledge. Selecting cities to set up a GCC in India based on mandate fit rather than popularity is what separates durable GCCs from short-lived ones.
In practice, many enterprises now adopt a multi-city model. Tier-2 cities form the core delivery engine, while Tier-1 locations are used selectively for leadership presence or niche capabilities. This structure balances depth, cost, and flexibility and is increasingly the default for organizations building GCCs in India with a long-term horizon.
5-Year ROI Snapshot (Per 100 Engineers)
| Model | Estimated 5-Year TCO | Attrition Risk | ROI Outlook |
|---|---|---|---|
| Tier-1 only | Highest | High | Flattening |
| Tier-2 only | Lowest | Low | Compounding |
| Tier-1 + Tier-2 | Medium | Medium | Strong |
Common City-Selection Mistakes (Costly)
When evaluating cities to set up a GCC in India, many mistakes are not obvious in the first year. They surface as the center scales, when costs rise faster than expected and delivery stability starts to slip.
Choosing brand over mandate fit
A frequent error is selecting a city based on reputation rather than operational need. Tier-1 metros feel safe and familiar, but they often introduce high attrition and aggressive wage cycles. Over time, this weakens execution and erodes ROI. Among cities to set up a GCC in India, the best-performing ones are usually chosen for fit, not visibility.
Treating attrition as a secondary metric
Attrition is often viewed as an HR issue instead of a financial one. Replacement hiring, onboarding delays, and knowledge loss significantly increase total cost of ownership. Cities to set up a GCC in India with lower churn consistently deliver better long-term outcomes, even when base salaries appear comparable.
Over-indexing on Tier-1 leadership density
Another mistake is assuming leadership must sit in the same city as delivery teams. While senior talent is valuable, placing large delivery teams in high-churn markets creates execution friction. Leadership presence can be centralized or rotated without locking the entire GCC into Tier-1 economics.
Underestimating Tier-2 infrastructure maturity
Some enterprises still dismiss Tier-2 locations due to outdated assumptions about infrastructure or ecosystem readiness. In reality, several Tier-2 cities to set up a GCC in India now offer enterprise-grade offices, compliance readiness, and reliable connectivity. Ignoring this evolution often results in higher costs with no meaningful performance advantage.
How Supersourcing Helps Pick the Right City
Supersourcing designs city-right GCCs—mapping mandate to location for lowest TCO and highest retention.
Why teams choose Supersourcing
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CMMI Level 5 organization
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Google AI Accelerator Batch participant
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LinkedIn Top 10 company recognition
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Proven Tier-2 GCC builds (50 → 1,000+)
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End-to-end ownership: city strategy → hiring → infra → compliance
Final Takeaway
Choosing the right cities to set up a GCC in India is ultimately a long-term operating decision, not a launch-phase decision. The strongest GCCs are not built in the most visible cities, but in locations where talent stays longer, costs remain predictable, and execution improves year after year.
Tier-2 cities have moved well beyond their earlier perception as secondary options. For many enterprises, they now offer the best balance of talent availability, retention, and five-year economics. Tier-1 cities still matter, but increasingly as selective additions rather than default anchors.
The most resilient model emerging in 2026 is a city mix aligned to mandate. Core delivery, platforms, and shared services operate out of Tier-2 hubs, while Tier-1 locations are used sparingly for leadership or niche capabilities. Enterprises that evaluate cities to set up a GCC in India through this lens are far more likely to achieve compounding ROI rather than cost flattening.
If the goal is durability, scalability, and predictability, city choice must be treated as a strategic decision that shapes the GCC for the next decade, not just the first year.
FAQs
Which are the best cities to set up a GCC in India in 2026?
The best cities to set up a GCC in India depend on the mandate. Indore performs well for scaled delivery and QA, Coimbatore for core engineering and ERP, and Kochi for cloud and data. Tier-1 cities like Bangalore and Hyderabad are best used selectively for leadership or niche skills.
Are Tier-2 cities suitable for large-scale GCCs?
Yes. Many Tier-2 cities to set up a GCC in India now support centers with hundreds of engineers. They offer enterprise-grade infrastructure, stable talent markets, and lower attrition, which makes them well suited for long-term scale.
How much cost difference does city choice really make?
City choice can create a 20 to 40 percent difference in total cost of ownership over five years. Lower attrition and steadier wage growth in certain cities to set up a GCC in India significantly reduce replacement and management costs.
Is Bangalore still relevant for new GCCs?
Bangalore remains relevant for niche skills, senior leadership, and innovation-focused teams. However, using it as the sole delivery hub often results in higher costs and attrition compared to alternative cities to set up a GCC in India.
Should enterprises choose one city or a multi-city model?
Most mature organizations now prefer a multi-city approach. Combining two or more Tier-2 cities with limited Tier-1 presence reduces risk, improves retention, and creates more predictable economics when setting up a GCC in India.