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Established hubs like Bengaluru, Hyderabad, and Delhi NCR continue to attract investment, specifically in premium office spaces in GCCs, said Tokyo-headquartered IT services firm NTT DATA in its report released on Wednesday.
The report, titled, India Global Capability Centre (GCC) Innovation Transformation Report 2025, analysed the evolution of India’s GCC ecosystem. It was published in collaboration with The Mainstream, a website which tracks the tech industry.
According to the report, there is also high demand for premium, amenity-rich residential properties adjacent to technology clusters. There are over 1,900 GCCs in the country, and the first quarter of 2025 alone added more than 16, the report said. Growth remained the highest between FY19 and FY24, during which more than 400 GCCs were added.
This report comes amid GCC expansion to tier II and tier III cities, including Kochi, Coimbatore, and Jaipur, which have together hosted more than 190 GCCs, the report added.
While infrastructure quality was salient for tier I cities, lower operational cost, less saturated talent markets, and a better quality of life for employees led the expansion into the hinterland, the report added even as it flagged infra gaps in tier II cities and beyond.
Talent challenges
According to the report, 42% of GCCs surveyed said that scarcity of seasoned talent due to competition from higher paying tech companies is a major challenge.
"Securing high-calibre talent in tier II cities remains a significant hurdle," the report said and added that AI readiness and cyber-attacks are other key challenges to growth.
There is a clear indication that places with tech investments and talent upskilling are the first to become innovation hubs, says Avinash Joshi, executive managing director, India, NTT DATA, in the report.
The report noted that only 22% of organisations in the country report measurable outcomes of their current AI deployments. This indicates that simply investing in artificial intelligence (AI) tools is insufficient if the data foundation remains flawed.
The report, titled, India Global Capability Centre (GCC) Innovation Transformation Report 2025, analysed the evolution of India’s GCC ecosystem. It was published in collaboration with The Mainstream, a website which tracks the tech industry.
According to the report, there is also high demand for premium, amenity-rich residential properties adjacent to technology clusters. There are over 1,900 GCCs in the country, and the first quarter of 2025 alone added more than 16, the report said. Growth remained the highest between FY19 and FY24, during which more than 400 GCCs were added.
This report comes amid GCC expansion to tier II and tier III cities, including Kochi, Coimbatore, and Jaipur, which have together hosted more than 190 GCCs, the report added.
While infrastructure quality was salient for tier I cities, lower operational cost, less saturated talent markets, and a better quality of life for employees led the expansion into the hinterland, the report added even as it flagged infra gaps in tier II cities and beyond.
Talent challenges
According to the report, 42% of GCCs surveyed said that scarcity of seasoned talent due to competition from higher paying tech companies is a major challenge.
"Securing high-calibre talent in tier II cities remains a significant hurdle," the report said and added that AI readiness and cyber-attacks are other key challenges to growth.
There is a clear indication that places with tech investments and talent upskilling are the first to become innovation hubs, says Avinash Joshi, executive managing director, India, NTT DATA, in the report.
The report noted that only 22% of organisations in the country report measurable outcomes of their current AI deployments. This indicates that simply investing in artificial intelligence (AI) tools is insufficient if the data foundation remains flawed.