Beyond metros: the tier-II emergence and India's multi-hub GCC model

• India's GCC market is valued at USD 65 billion and is projected to grow to USD 105 billion by 2030, with more than 2,500 centres
• Tier-II cities offer 25–50% cost savings compared to Tier-I metros, driven by lower real estate, talent and operational expenses
• State-backed incentives are accelerating expansion, offering capital subsidies, salary reimbursements and infrastructure support to attract new centres
• Multi-hub strategies are emerging as the preferred operating model to distribute operations, reduce concentration risk, improve business continuity and access talent
  
  

This article is a part of JLL's 2026 GCC Guide: Explore the guide here

India’s Global Capability Centre (GCC) market, valued at USD 65 billion, is entering a new phase of growth. The country is now the most mature and scalable GCC destination globally, forming a critical pillar of enterprise capability models. With more than 200 new centres established in the last two years, GCCs today employ over 1.9 million professionals across shared services, engineering and R&D, data analytics, AI and ML and cybersecurity. As these centres expand into end-to-end digital, engineering and transformation roles, tier‑II cities are emerging as complimentary or support locations to established tier‑I hubs.

This momentum is closely tied to India’s expanding role on the world stage. By 2030, India is expected to host more than 2,500 GCCs, employing up to 2.9 million professionals and contributing nearly USD 105 billion to the global economy. As organisations deepen their innovation, digital and operational footprints, India’s scale, talent depth and multi-city expansion are reinforcing its position as the global hub powering next-generation capability centres.

More than 90% of GCC activity is still concentrated in tier-I cities such as Bengaluru, Hyderabad, Chennai, Pune, Mumbai and Delhi NCR. However, a new group of Tier-2 locations are on the rise. Cities like Kolkata, Ahmedabad, Jaipur, Coimbatore, Lucknow and Kochi offer 10 to 35% lower living costs than tier-I metros. These cities also show improving infrastructure, state-backed incentives and access to under-tapped talent pools.

As these advantages come together, the economic impact for enterprises becomes even more compelling. Organisations can lower real estate, talent and operational costs by 25-50% in these markets compared to traditional tier-I hubs. At the same time, the workforce gains significantly from skilled roles in markets that offer a lower cost of living and a better work–life balance. This dual benefit makes these cities preferred choices for talent, ultimately reducing attrition and enabling sustainable growth.

Forward-thinking GCCs are adopting hub-and-spoke models to maximise operational efficiency and talent access. Instead of placing all teams in a single metro city, companies are distributing their operations across multiple locations to create a more balanced and resilient footprint. This approach reduces concentration risk, strengthens business continuity, and keeps core innovation anchored in established hubs. At the same time, secondary hubs that align with talent supply and cost expectations are emerging as strategic centres for scaling operations.

For example, a 3,000‑seat centre in Bengaluru can serve as the main hub, while additional sites in Hyderabad, Pune or Chennai provide extra capacity and cost advantages. Over time, organisations add satellite offices for specialised skills and partner with local universities to ensure a steady talent supply. They also retain flexible capacity that can grow during peak project periods. Some also explore nearshore nodes and build Centres of Excellence in areas such as AI, blockchain or cybersecurity to deepen capability.

Several forces are driving this shift toward multi-city expansion:

First, talent diversification. Expanding into more cities gives companies access to fresh graduates and experienced professionals, making hiring easier.

Second, the cost advantage. Lower operating and workforce costs in Tier-2 cities help enterprises reduce expenses while maintaining service quality.

Third, better infrastructure. Several cities now have reliable transport, power, and digital connectivity, making it easier for companies to operate across multiple locations.

Taken together, these shifts represent a clear flight to value, where enterprises optimise cost while deepening capability and resilience.

State policies are a major force behind India’s GCC expansion. Many states have introduced dedicated GCC agendas that combine fiscal incentives, infrastructure support and talent-linked programmes. Maharashtra’s GCC Policy 2025–30 aims to attract 400 new centres and 4 lakh jobs, backed by capital subsidies of up to ₹50 crore for eligible units. Andhra Pradesh has taken a different route under its IT & GCC Policy 4.0, offering salary reimbursements up to ₹3 lakh per employee, rental subsidies and concessional power tariffs, while the LIFT scheme provides land at ₹0.99 per acre to fast-track large GCC projects. Madhya Pradesh, Odisha, Kerala, Gujarat and Uttar Pradesh have also introduced strong policy packages, offering capital subsidies, land support, operating cost rebates and incentives for R&D and local hiring.

Infrastructure readiness is rising simultaneously. States are expanding IT parks, SEZ corridors, coworking hubs, data centres and fibre networks to support modern distributed operations. Several have also introduced single‑window clearance systems and clearer implementation rules, such as UP’s Rules‑2025, which simplify approvals and accelerate setup. These combined efforts give companies a clear pathway to enter new markets and scale confidently into Tier‑2 locations as part of a larger multi-hub footprint.

Selecting the right city and micro‑market is one of the most critical decisions in setting up or expanding a GCC. A poor choice can slow hiring, increase costs and delay results, while the right choice becomes a long-term competitive advantage.

To support this, many organisations rely on a structured location evaluation model. Below are the five weighted parameters used to score cities and help shape the final decision: 

• Talent ecosystem makes up 35% of the total evaluation. It looks at the depth, availability and specialisation of the talent pool.
• Cost structure contributes 25% of the scoring model. It covers salary benchmarks, real estate expenses and broader operating costs.
• Infrastructure and business environment accounts for 20% of the weightage. It assesses transport connectivity, digital readiness, regulatory ease and overall operating conditions.
• Ecosystem and growth represent 15% of the overall score. It evaluates peer‑company presence, access to innovation networks and the city’s long‑term growth potential.
• Quality of life makes up the remaining 5% of the model. It reflects safety, healthcare, education and amenities that support employee retention.

Multi-city setups work best when modern workplace practices bring consistency across locations. In tier‑I offices, activity-based working helps teams focus on collaboration and innovation. Tier‑II offices, in contrast, run at higher utilisation to support large-scale delivery. A strong connectivity model keeps these sites connected. Reliable networks, good meeting‑room technology and workplace apps ensure equal participation for everyone. Occupancy data then helps teams manage space smartly across offices, keeping daily operations coordinated and efficient.

To make this multi‑city model work well in the long run, organisations also need strong systems that keep operations steady and reliable. Backup connectivity, clear continuity plans and secure work zones help protect sensitive tasks. These measures ensure that work continues without major disruption, even if one city faces an issue.

India’s growth story is now moving beyond the major metros. tier‑I cities will continue to lead in innovation and leadership, while tier‑II cities are becoming strong partners by adding new talent, improving stability and supporting steady expansion. Companies that match the right work to the right city and scale in phases can hire faster, retain better and deliver value more quickly. 

Building on this shift, the advantages become clear. Many organisations can reduce real estate, talent and operating costs by expanding into these newer markets. Employees benefit as well, gaining access to skilled roles along with lower living costs and a better work–life balance. Together, these outcomes create long-term advantages for both companies and their workforce.