When the world’s biggest companies go hunting for new growth hubs, they usually look where everyone else is looking. But real opportunities? They often hide in places no one’s paying enough attention to. Right now, that place is Indore.
While most companies crowd into India’s tier-1 cities, Indore is quietly solving the problems those cities can’t: access to skilled talent without saturation, operational costs without compromise, and infrastructure built for growth, not just survival.
Multinationals like Infosys, Bridgestone, and TaskUs aren’t expanding into Indore by chance—they’re following the data. Talent pipelines are stronger, employee retention is higher, and the cost of scaling operations is significantly lower.
Here’s why Indore isn’t just part of the conversation anymore—it’s becoming the center of it.
Why Indore?
1. Strategic Location and Connectivity
Positioned at the heart of India, Indore boasts a logistical advantage that few cities can match. Its central location means easy access to every corner of the country—whether by road, rail, or air. The Devi Ahilya Bai Holkar Airport connects Indore to major domestic cities and key international destinations, ensuring seamless business travel and cargo movement.
Moreover, the city’s well-developed roadways and efficient railway links make it a logistical dream, reducing operational delays and costs—a crucial factor for companies running large-scale back-end operations.
2. Skilled Talent Pool
Indore isn’t just a well-connected city; it’s a knowledge powerhouse. With premier educational institutions like IIT Indore and IIM Indore, it churns out thousands of highly skilled professionals every year. Fields like engineering, software development, finance, and business analytics are particularly strong.
Major players like TCS and Infosys have already set up shop here, drawn by the city’s deep talent pool. They consistently highlight the quality, adaptability, and work ethic of Indore’s graduates—factors that directly impact productivity and innovation.
3. Cost-Effectiveness
Operational costs can make or break a business. In Indore, the cost of living and doing business is significantly lower compared to tier-1 cities. Real estate prices are reasonable, wage structures are sustainable, and general expenses—from office maintenance to employee benefits—are markedly reduced.
For instance, Persistent Systems witnessed a 35% drop in operational costs after establishing its Indore center, without sacrificing quality or efficiency. This substantial saving offers companies more flexibility to reinvest in innovation and expansion.
4. Government Support
Indore’s growth is backed by proactive government policies. The Madhya Pradesh government is heavily promoting Indore as a business-friendly hub through the development of Special Economic Zones (SEZs), IT parks, and startup incubators. Businesses also benefit from tax incentives, simplified regulatory procedures, and fast-track approval systems, making it easier and faster to set up operations.
Such policies create a stable, supportive environment for businesses aiming to grow and innovate.
5. Quality of Life
It’s not all work in Indore. Awarded the title of India’s cleanest city six years in a row, Indore offers an unmatched quality of life. Clean air, organized infrastructure, and a rich cultural scene contribute to making it a desirable place to live and work.
This translates directly into business benefits—happy employees mean better retention rates. Companies like Capgemini have seen higher employee retention in Indore compared to their metro-based centers.
Real-Life Success Stories: GCCs in Indore
Case Study 1: Infosys’ Growth Story
Infosys, a giant in IT services, saw the promise in Indore early on. Today, its development center employs over 2,000 professionals.
- Talent Accessibility: Strategic partnerships with local universities ensure a steady influx of trained graduates.
- Employee Retention: Thanks to Indore’s affordable lifestyle, Infosys enjoys a retention rate 20% higher than its metro centers.
- Operational Efficiency: With lower costs and better logistics, project delivery timelines have improved notably.
Case Study 2: Bridgestone’s Innovation Hub
Global automotive leader Bridgestone set up a GCC in Indore to fuel its R&D ambitions.
- Innovation-Driven Workforce: Over 500 engineers are engaged in cutting-edge sustainable tire technology projects.
- Cost Savings: The company reports a 40% reduction in R&D expenses compared to its European facilities.
- Community Engagement: By collaborating with local communities, Bridgestone has boosted employee satisfaction and enhanced its brand image.
Case Study 3: TaskUs’ Expansion in Customer Experience
TaskUs, known for customer support and back-office services, chose Indore for strategic scaling.
- Scalability: Growing from 200 to 1,000 employees in just two years showcases the city’s potential.
- Employee Well-Being: Wellness programs leveraging Indore’s green spaces have elevated employee productivity.
- Client Satisfaction: Operational efficiency improvements have translated into a 25% better client service metric.
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How GCCs Can Succeed in Indore
1. Collaborate with Educational Institutions
Partnering with universities such as Devi Ahilya Vishwavidyalaya (DAVV) and other private colleges can help companies create tailored training programs. This ensures a workforce that is not only skilled but also aligned with the company’s specific requirements.
2. Leverage Local Startups
Indore’s startup ecosystem is bubbling with innovation. Companies can forge strategic partnerships with these startups to tap into cutting-edge technology and agile processes that traditional corporations sometimes lack.
3. Streamline Hiring Processes
Efficient hiring is crucial, especially when scaling operations. Embracing platforms that leverage AI and data-driven approaches can drastically shorten hiring cycles and improve the quality of hires. Rapid onboarding ensures projects hit the ground running without delays.
4. Focus on Sustainability
Indore’s identity as a green, clean city offers a great backdrop for sustainability initiatives. Aligning corporate social responsibility efforts with citywide cleanliness and environmental initiatives can not only strengthen brand image but also contribute positively to the local ecosystem.
5. Build Long-Term Strategies
It’s essential to look beyond short-term wins. Companies that invest in mentorship programs, employee upskilling, and community development initiatives can build a strong, loyal workforce and ensure sustainable success.
The Future Outlook
Indore is just getting started. As multinational companies search for cost-effective, talent-rich alternatives to saturated metro markets, Indore is emerging as a compelling choice. The city offers a rare blend of innovation, affordability, and livability, making it uniquely positioned to host the next generation of GCCs.
Real-life examples from Infosys, Bridgestone, and TaskUs affirm Indore’s capacity to deliver on the promises of operational excellence and innovation.
Conclusion
Indore is trying to compete with India’s established tech hubs carving out its own space, on its own terms. A city with deep talent reserves, lower operational costs, government-backed business infrastructure, and a high quality of life can offer brands a competitive edge.
The companies making moves here aren’t experimenting; they’re building serious, long-term operations. Whether it’s Infosys scaling its workforce, Bridgestone driving innovation, or TaskUs raising the bar for customer experience, the early adopters are already setting the pace.
For GCCs looking beyond crowded markets and spiraling costs, Indore offers something rare: a chance to scale smarter, build deeper roots, and stay ahead of the curve. And in today’s global economy, finding that kind of opportunity is essential.
FAQs
1. Why is Indore becoming a hotspot for GCCs in India?
Indore offers a unique combination of a skilled talent pool, modern infrastructure, competitive operational costs, and strong government support, making it a strategic location for Global Capability Centers (GCCs).
2. What incentives are available for setting up a GCC in Indore?
Under the MP GCC Policy 2025, companies setting up a GCC in Indore can access incentives like CAPEX and OPEX support, rental subsidies, employment generation subsidies, and interest subsidies on loans.
3. How does Indore’s workforce support GCC growth?
Indore boasts a large, tech-savvy, and English-proficient workforce, supported by premier educational institutions. This helps GCCs quickly build high-performing teams across IT, finance, R&D, and customer service functions.
4. What sectors are driving GCC expansion in Indore?
Sectors like IT, BFSI (Banking, Financial Services, and Insurance), healthcare, engineering services, and research and development are leading the GCC expansion in Indore.
5. How does infrastructure in Indore benefit GCC operations?
Indore offers robust infrastructure, including IT parks, special economic zones (SEZs), reliable utilities, and strong connectivity via road, rail, and air — all critical for smooth GCC operations and scalability.