GCCs may occupy 26 million sq ft office space by 2027: Knight Frank India

After beating IT services in hiring engineers, the Global Capacity Centre (GCCs) players are expected to increase their real-estate footprint in the country.

The GCCs are expected to occupy 26 million square feet by 2027 from 19.69 million square feet in 2023, according to a Knight Frank and 3AI report.

The joint report stated that GCCs completed 6,667 leasing deals across eight major cities from 2018 to 2023, marking a 16 per cent increase in transaction activities from 2018. This growth underscores India's role in process enhancement and business innovation.

“In the dynamic landscape of global business, India's GCCs have evolved beyond traditional roles to become pivotal hubs of global strategy and local ingenuity. As India solidifies its position as a cornerstone of global GCC networks, these centres emerge as unparalleled hubs of creativity and collaboration,” said Shishir Baijal, chairman & managing director, Knight Frank India.

The report highlighted that GCCs from IT/ITeS dominate the industry, followed by BFSI (Banking, Financial Services and Insurance) and Consulting sectors. Among the Indian cities, Mumbai leads in BFSI GCCs, while Bengaluru leads in IT/ITeS GCCs.

Sameer Dhanrajani, CEO, 3Ai said, “The future of GCCs in India is promising, with projections showing over 1,900 centres by 2025, employing around 2 million people. Emphasis will be on integrating advanced technologies, driving innovation, and fostering sustainability. GCCs are expected to play critical roles in global operations, particularly in generative AI, customer-centric business development, and as-a-service transformations.”

As per the report, between 2018 and 2023, 5,349 GCC-focused office deals under 50,000 square feet were finalised across eight cities. Additionally, 790 deals (50,000-100,000 sq ft) in the medium segment and 528 deals (above 100,000 sq ft) were signed as part of larger deals.

“The development of new GCCs specially catering to manufacturing sector has increased on a Year-on-Year basis and the talent landscape mainly in the technology sector has evolved over the years to meet the growing demand of new GCCs hence helping the growth of GCC in India,” said Rahil Gibran, national director, Occupier Strategy and Solutions, Bengaluru, Knight Frank India. 

The report highlights India as a pivotal GCC hub, alongside the US, Latin America, China, Europe, and APAC. “India, the US, and China excel in talent acquisition ease, while India and APAC offer cost advantages. This makes India increasingly preferred for multinational corporations, especially US firms, expanding their global operations,” said the report.