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In recent years, GCCs in India have evolved into AI innovation hubs for their parent companies in tier-1 cities. They are now expanding beyond major metropolitan areas to access the abundant talent pools available in tier 2 and 3 cities.
Recently, a report by Instahyre further found that cities like Chandigarh, Jaipur and Indore (among other talent-rich metros) are becoming prominent destinations for product talent. These locations are projected to witness 2x-3x growth in hiring compared to 2024.
These cities present an appealing mix of lower operational costs, robust infrastructure, a skilled talent pool, and supportive business policies, making them ideal for companies aiming to establish or expand their operations.
Mysuru
In close proximity to Bengaluru, Mysuru is emerging as a promising and cost-effective hub for Global Capability Centres (GCCs), offering business potential and operational savings. With established IT players like Infosys, Wipro, and L&T Tech already present, and lower living costs compared to Bengaluru, the city is attracting attention from companies looking to expand beyond metro markets.
Mysuru has a skilled talent pool from local engineering and management institutions, a disciplined workforce, and improving infrastructure, including expressway and rail connectivity, and an expanding airport. As Bengaluru continues to dominate India’s GCC landscape, a natural spillover into nearby Mysuru is expected. IBM has already led this trend by launching its Client Innovation Center (CIC) in the city, offering hybrid cloud and AI consulting services, signalling the city’s growing role in India’s tech ecosystem.
AIM is hosting the most powerful GCC event, MachineCon GCC Summit 2025, from June 20 to 22, 2025, at the ITC Grand in Goa.
Lucknow
The Uttar Pradesh government launched the Global Capability Centres (GCC) Policy 2024 to attract Fortune 500 companies and increase foreign direct investment. The policy includes a range of incentives, such as land subsidies, exemptions on stamp duty, and capital and operational subsidies, to promote the setting up of GCCs in cities like Lucknow.
The GCC Policy 2024 also highlights the government’s plans for an AI City in Lucknow (40 acres), which will further enhance UP’s infrastructure offerings.
IBM has announced plans to open a new Software Lab in Lucknow, Uttar Pradesh, to accelerate innovation in generative AI and agentic AI. The facility will be located at Platinum Mall in Sushant Golf City and is part of IBM’s broader expansion efforts in India.
Coimbatore
Known as the “Manchester of South India,” Coimbatore’s strong industrial heritage in automotive, aerospace, precision engineering, and medical devices provides an ideal base for developing and testing digital twin technologies.
Small and medium enterprises (SMEs) specialising in manufacturing, embedded systems, and automation are key contributors, offering practical support for prototyping and scaling innovations in smart factories, aerospace components, and medical technology.
Bosch has been a pioneer in tapping into Coimbatore’s ecosystem for over 12 to 15 years, driving innovation by combining its industrial expertise with advanced digital technologies. The company has effectively utilised the local talent pool, SMEs, and academic institutions to create sophisticated automation solutions, smart manufacturing systems, and AI-driven industrial applications.
Similarly, SLB, a global technology company, has established a strong presence in India by strategically recruiting fresh engineering graduates from top institutions nationwide and blending their skills with digital expertise. Their success highlights how companies can leverage Coimbatore’s engineering and IT talent to build future-ready Global Capability Centres.
Jaipur
The prime reason Jaipur is emerging as a key hub for GCCs in India is its strategic location, strong connectivity, and well-developed infrastructure, including IT parks and Special Economic Zones like Mahindra World City.
The city benefits from a skilled talent pool produced by institutions such as MNIT and the University of Rajasthan, supported by government initiatives and incentives through agencies like STPI.
Leading companies like Dotsquares have established GCCs in Jaipur, highlighting its growing importance in IT and digital services.
Kochi
The Kerala Global Capabilities Centre (GCC) Framework aims to establish Kerala as a leading hub for global business and technology innovation. The framework leverages Kerala’s strategic location, advanced infrastructure, and skilled workforce to attract global firms.
It focuses on emerging technologies such as AI, machine learning, quantum computing, and photonics, positioning the state as an Emerging Technology Hub with strengths in agriculture, space, renewable energy, digital media, and healthcare.
Kerala supports over 6,200 startups and fosters innovation through initiatives like IEDCs and LEAP. The framework also emphasises inclusive growth and is developing policies to transform companies into Global Technology Centres (GTCS) in the era of AI and advanced tech.
A major IT park in Kochi, InfoPark, houses over 580 companies, including global giants like TCS, Wipro, and Cognizant, employing around 70,000 professionals.
Indore
Ranked fourth in the Ease of Doing Business Ranking 2023, the state of Madhya Pradesh provides affordable business operations and living costs that are less than half of those in metropolitan cities.
With approximately 300 engineering colleges producing over 50,000 tech graduates annually and a talent pool of more than 2 lakh skilled IT/ITeS professionals, Madhya Pradesh houses an abundant, English-speaking workforce. With this, Indore, the populous city in the state, is turning into an education and service hub.
Additionally, the state also hosts a large industrial land bank comprising over 120 industrial areas, five SEZs, and 15 IT parks, making it an attractive hub for global business operations.
Chandigarh
Chandigarh is emerging as a preferred destination for companies establishing GCCs in India. The city offers a compelling mix of advantages, including a robust talent pool, cost-effective infrastructure, and attractive tax incentives. With a population exceeding one million and a high literacy rate, Chandigarh provides access to a large and skilled workforce capable of supporting diverse industry needs.
The city’s state-of-the-art infrastructure—a strong optical fibre network and modern office spaces—ensures reliable connectivity and smooth operations. The city’s thriving startup ecosystem further promotes innovation and collaboration, fostering a dynamic business environment.
The local government actively champions the growth of the IT sector by offering various incentives, creating a business-friendly atmosphere. Additionally, the availability of affordable real estate allows companies to establish operations without incurring heavy costs.
Initiatives such as the Microsoft Innovation Centre also bolster the local tech landscape.
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