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Companies running Global Capability Centres (GCCs) in India are increasingly looking beyond traditional tech metros and expanding into tier-2 and tier-3 cities such as Jaipur, Kochi, Coimbatore, Ahmedabad and Chandigarh. This shift is driven by rising real estate and salary costs in major hubs like Bengaluru, Hyderabad and Pune, along with intense competition for experienced talent.
Tier-2 and 3 cities offer lower operating expenses, less congestion, and a steady flow of graduates from local colleges, making them attractive alternatives for scalable operations. These centres now cover a range of functions including finance, HR, supply chain, engineering, research and digital operations. Governments are backing the trend with incentives and infrastructure support to attract GCC investments. However, challenges remain. While these emerging cities boast fresh talent and cost advantages, senior professionals still tend to prefer established metro ecosystems for networking and career growth.
Despite that, the movement is seen as more than a temporary cost play; it’s shaping up as a structural shift in India’s GCC landscape. With improving infrastructure, supportive policies and focused leadership, tier-2 and tier-3 cities are positioning themselves as long-term destinations for diverse and high-value GCC roles, helping India decentralize tech and business growth.
