What do HSBC, Mastercard, and Allianz have in common? They all run high-performing Global Capability Centers (GCCs) out of Pune. Meanwhile, Indore—India’s cleanest city—is quietly building momentum as the next big destination for tech operations.
With over 1,580 GCCs currently operating in India and more than 80 new centers added in 2023 alone, the country has cemented its role as the global hub for technology, analytics, finance, and R&D operations. But as real estate prices and talent competition surge in tier-1 cities, companies are scouting tier-2 locations for smarter, cost-efficient expansion.
That’s where Pune and Indore come into the spotlight. Pune, known for its robust IT ecosystem and proximity to Mumbai, is a tried-and-tested choice. Indore, on the other hand, is rapidly evolving, backed by a proactive state government, a young workforce, and urban infrastructure built from scratch under India’s Smart City mission.
So, which city is better for your next GCC?
Whether you’re a Fortune 500 firm or a fast-scaling enterprise, the decision could significantly impact your cost, hiring efficiency, and long-term growth.
In this article, we’ll compare Pune and Indore across the factors that actually matter—cost of operations, talent availability, infrastructure, policy support, and quality of life—to help you make a data-backed, strategic call.
Let’s dive in.
Pune vs Indore: Which is the Better Choice
Cost Advantage: Indore Takes the Lead
Real estate and rentals:
Pune’s commercial real estate is significantly more expensive than Indore’s. Grade A office space in Pune’s business districts like Hinjewadi or Kharadi can cost ₹70–₹110 per sq. ft., whereas in Indore, you’re looking at ₹35–₹55 per sq. ft. That’s nearly half the cost—without compromising much on quality.
Employee salaries:
Average salaries for software developers and business analysts in Indore are 15–25% lower than in Pune. For a GCC employing 300–500 people, this translates into substantial annual savings.
Overall cost of living:
Indore is more budget-friendly. From utilities to daily commutes, it offers a lower operational footprint, making it attractive for companies seeking long-term scalability with cost discipline.
Talent Pool: Pune Is Bigger, But Indore Is Catching Up
Engineering and IT graduates:
Pune is home to premier institutions like COEP, Symbiosis, and MIT-WPU, producing a steady pipeline of skilled graduates each year. It’s also close to Mumbai, making it easier to tap into a large, mobile tech workforce.
Indore, however, is rapidly emerging as a talent hotspot. With IIT Indore and IIM Indore, the city has begun nurturing high-quality talent, especially in AI, analytics, and engineering. More private universities are also focusing on industry-aligned courses, narrowing the talent gap.
Workforce retention:
Indore has an edge in employee retention. The city’s slower pace, lower cost of living, and growing job market encourage professionals to stay long-term. Pune, while rich in opportunities, sees more attrition due to the higher presence of competitors and headhunting by multinational firms.
Infrastructure: Pune Is More Mature, But Indore Is Agile
Connectivity:
Pune boasts an international airport, frequent domestic flights, and proximity to Mumbai. It also has a functional metro rail system (in phases) and established IT parks like Rajiv Gandhi Infotech Park.
Indore, on the other hand, has a well-maintained domestic airport with growing connectivity, including international charter flights. The Super Corridor, a planned IT and fintech zone, is already attracting investments. Smart City initiatives are making Indore more agile and adaptive to the needs of tech enterprises.
Utilities and power supply:
Both cities fare well on basic infrastructure. However, Pune’s size sometimes causes water shortages and traffic congestion. Indore, being more compact and well-planned, offers smoother logistics and power reliability.
Business Ecosystem: Pune Is Established, Indore Is Hungry
Presence of GCCs and IT companies:
Pune already hosts GCCs from HSBC, Credit Suisse, Allianz, and Mastercard. Its ecosystem is matured, with seasoned vendors, tech consultants, and shared services companies.
Indore is still early in its GCC journey, but its hunger to grow is palpable. The state government is actively offering incentives, fast-track approvals, and partnerships with accelerators to attract global players. Infosys and TCS have large campuses, and more IT parks are in development.
Regulatory and government support:
Both cities benefit from supportive state governments. Maharashtra has strong policies in place for IT and ITeS, while Madhya Pradesh is aggressively pushing for digital infrastructure, startup incubation, and IT skilling programs.
Quality of Life: Indore Wins on Cleanliness, Pune on Culture
Living experience:
Pune is cosmopolitan, culturally rich, and a favorite among millennials for its cafes, nightlife, and weekend getaways. It offers excellent healthcare and education options.
Indore may not have the same buzz, but it consistently ranks as India’s cleanest city and offers a more relaxed lifestyle. For employees seeking work-life balance without big-city chaos, Indore has serious appeal.
Safety and ease of relocation:
Both cities are relatively safe. Indore scores high on civic sense and public cleanliness, while Pune’s larger expat and IT community makes it easier for employees to transition and settle in.
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Pune vs Indore for GCCs: A Side-by-Side Comparison
| Factor | Pune | Indore |
| Real Estate Cost | ₹70–₹110 per sq. ft. (Grade A) | ₹35–₹55 per sq. ft. (Grade A) |
| Talent Pool Size | Large, with steady output from top-tier engineering colleges | Moderate but growing rapidly with institutions like IIT, IIM |
| Salary Benchmark | 15–25% higher than Indore | More cost-efficient talent pool |
| Attrition Rate | Higher, due to intense competition | Lower, with better workforce stability |
| IT Ecosystem Maturity | Established; home to major GCCs and IT firms | Emerging; with rising state-level support and new IT parks |
| Connectivity | International airport, metro, proximity to Mumbai | Well-connected domestic airport, planned international upgrades |
| Infrastructure Quality | Strong but strained due to city size | Compact, planned, and efficiently managed |
| Government Support | Strong policies; competitive but saturated | Proactive incentives; eager to attract investments |
| Cost of Living | Higher, more cosmopolitan | Lower, with a simpler lifestyle |
| Quality of Life | Rich cultural scene, good amenities, some congestion | Cleanest city, peaceful, improving rapidly |
| Best For | Scaling quickly, mature operations, larger hiring pipelines | Cost-conscious expansion, niche or mid-sized GCCs |
Final Verdict: It Depends on Your Strategic Priorities
If your company values a plug-and-play tech ecosystem, faster hiring, and access to large talent pools, Pune remains a strong and proven choice.
But if you’re looking for cost efficiency, high retention, and first-mover advantage in an ambitious city, Indore offers compelling long-term value.
Both cities are viable for GCCs but the right pick hinges on your expansion goals, timeline, and investment appetite.
Frequently Asked Questions (FAQs)
Which city is cheaper for setting up a GCC: Pune or Indore?
Indore is significantly more affordable than Pune when it comes to real estate, salaries, and overall cost of living. Office rentals can be up to 50% lower, and employee costs are also lighter on the budget, making Indore ideal for companies prioritizing cost efficiency.
Does Indore have enough tech talent to support a growing GCC?
Yes, and it’s growing fast. While Pune has a larger and more established talent pool, Indore is catching up thanks to institutions like IIT and IIM Indore. The city is also seeing rising interest from private universities and coding bootcamps focused on tech and data skills.
How does infrastructure compare between the two cities?
Pune has more developed infrastructure—international airport access, metro rail (under development), and established IT parks. Indore, while smaller, is highly planned, less congested, and part of India’s Smart City mission, offering agile urban infrastructure and better retention rates.
What are the risks of choosing Indore over Pune?
Indore’s ecosystem is still emerging. Companies might face slightly longer ramp-up times for large-scale hiring or specific domain expertise. However, this is offset by high employee retention, growing government support, and lower operational costs.
Can Supersourcing help set up our GCC in Pune or Indore?
Absolutely. Supersourcing specializes in end-to-end GCC setup—from identifying the right city and securing real estate to hiring vetted tech teams and managing compliance. Whether you choose Pune or Indore, we help de-risk your expansion and launch faster with lower overhead.