Scaling GCCs in Emerging Cities

Talent Insights 

With as much as 60% of all of India’s technology graduates hailing from tier 2 and 3 cities, access to highly skilled talent is the biggest magnet attracting global enterprises to these cities.

• Access to a Larger Talent Pool
  Tier 2 and 3 cities are rapidly evolving in terms of skilled talent for GCCs. The expansion into these cities allows companies to tap into a diverse and less saturated workforce.

  With the introduction of the   National Framework for GCCs, India is strategically expanding its global talent to enable multinational firms to diversify and grow their pool of professionals.

• Reduced Competition
  Lower competition for talent is a distinct advantage in Tier 2 and 3 cities. Unlike metros, where multiple companies vie for the same skilled professionals, these emerging hubs offer GCCs the opportunity to attract and retain talent more effectively.  

• Skilled Professionals
  India boasts a robust educational ecosystem, which ensures that global companies can get a steady supply of talented professionals from smaller cities. Many tier 2 and tier 3 cities have abundant colleges offering engineering, management, and technology courses. They cultivate a highly capable workforce ready to take on global roles. 

This ensures a symbiotic relationship between industry and the local academia, which allows qualified individuals to get employment within their cities. This, when combined with targeted upskilling, ensures that the workforce’s proficiency and flexibility are continuously enhanced. 

Infrastructure Insights 

In addition to the availability of talent in smaller towns, GCC expansion here also benefits the infrastructural growth of Tier 2 and 3 cities.  

• Growing IT Ecosystem
  The IT ecosystem in Tier 2 and 3 cities is growing fast, driven by both public and private sector investments. These cities are seeing the emergence of technology parks, incubators, and innovation hubs that support GCCs and related industries.

  As a result, emerging city GCCs like   Bhubaneswar, Ahmedabad, Coimbatore, and Kochi are becoming attractive destinations for technology-driven operations. 

• Robust Infrastructure
  Large GCCs are attracted towards tier 2 and tier 3 cities, as they see   major improvements in physical and digital infrastructure. Central and state governments are directing funds to developing transport systems, building modern workspaces, and ensuring reliable connectivity to foster sustainable growth.  

• Smart City Initiatives
  The Indian government started the Smart City initiative to transform smaller cities and take the modern business ecosystem beyond metropolises. This focuses on developing urban infrastructure and digital services. This directly supports the needs of GCCs and their employees. 

Overcoming Expansion Challenges 

A multi-pronged, proactive approach that addresses both operational and strategic barriers is the only way that GCCs in emerging cities can be successful. These barriers include: 

• Infrastructure Gaps
  Navigating state-specific regulations and tax incentives can be challenging. Engaging with local consultants, legal advisors, and government liaison officers can help streamline compliance and maximize incentives. 

• Talent and Skill Gaps
  While the talent pool is expanding, there be be shortages in niche or advanced skills (e.g., AI, cybersecurity). GCCs can address this by investing in training, upskilling, and partnering with local academic institutions. Bringing in experienced professionals from Tier 1 cities for mentoring and leadership roles can also help bridge immediate gaps. 

• Regulatory Complexities
  Navigating state-specific regulations and tax incentives can be tricky. Working with local consultants, legal advisors, and government liaison officers can help simplify compliance and maximize incentives. 

• Cultural Integration
  Integrating corporate culture with local practices requires sensitivity and structured onboarding. Providing cultural sensitivity training and fostering inclusive work environments are essential for smooth integration and retention. 

• Government Support
  The Indian Government’s National Framework for GCCs and state-level incentives are actively addressing many of these challenges by improving infrastructure, reforming building bylaws, and promoting industry collaboration. 

Top Tier 2 Cities Becoming GCC Magnets 

The selection of Tier 2 and 3 cities depends on business-friendly government initiatives, presence of tech parks for access to top-notch infrastructure, and the availability of ready talent. Some preferred Tier 2 cities for GCC expansion include Coimbatore, Pune, Chennai, Jaipur, Kochi, Chandigarh and Visakhapatnam.  

Emerging GCC hotspots in Tier‑II and other markets are rapidly evolving into centers for product development, AI, cybersecurity, finance, and customer experience. 

Guidehouse, a healthcare, financial services and technology company has its GCC in Chennai’s Ramanujan IT City and materials handling equipment enterprise Hyster-Yale Group set up its GCC in Amboli, Pune, which focuses on engineering, supply chain and marketing initiatives.  

From choosing the most strategic location to real estate, talent acquisition, and regulatory compliance, you can rely on ANSR when planning your GCC in India. Contact our team to know how we can help you scale and strengthen your business.