India projected to see 2,500 global capability centres in next 4 years

NEW DELHI — Amid the boom in the global capability centres (GCCs) in India, the country is projected to see 2,500 such centres over the next four years, with their office space footprint likely to surpass 300 million square feet, according to a new report.

India, with more than 1,800 GCCs as of today which occupy 240 million square feet of Grade A office space across the country’s top seven cities, is leading the GCC wave in the world.

According to the report by JLL India, a real estate advisory firm, since 2022, 100 new centres have been established in the country in Mumbai, Delhi-NCR, Kolkata, Bengaluru, Chennai and Pune, among others.

Bengaluru alone accounts for approximately 42 per cent of the total space occupied by GCCs. Moreover, GCCs represent about 50 per cent of active, ongoing space requirements across the top seven cities. US-based companies took up around 60 per cent of the occupied space in the country.

According to Rahul Arora from JLL India, the GCCs in India are spearheading cutting-edge research and development in AI, machine learning, and advanced manufacturing.

The GCCs are no longer just service providers; they’re becoming the nerve centres of global corporations, with Indian leadership securing pivotal roles in shaping worldwide business strategies. This shift underscores India’s emergence as the crucible of innovation, where multinational enterprises are forging their future, he noted.

Meanwhile, GCCs continued their robust momentum in India in the third quarter (Q3) with an overall contribution to the total gross leasing volume (GLV) at 30 per cent. The GLV in the overall office sector reached 24.8 million square feet (MSF) across top eight cities in Q3, marking the second highest quarterly leasing volume in the sector’s history, according to Cushman & Wakefield’s.

This represents a 66.4 per cent annual YoY growth in GLV and a strong 14.3 per cent quarterly growth, showcasing overall healthy market dynamics. Total GLV crossed 66.7 million MSF in the nine months, and is set to surpass 80 MSF in 2024.