Bengaluru: Global capability centres (GCCs) will account for 40-45% of the total office space leased in India in the ongoing financial year, according to a report released by property consultancy CBRE on Tuesday. By the end of 2025, over 1,900 GCCs will harbour a talent pool exceeding 2 million, it added.
Global capability centres - offshore arms of multinational companies - are making headlines in India for rapid expansion in recent years. In the financial year 2023-24, they leased 22.5 million square feet of office space, which was 17% higher than the 19.2 million square feet leased in the previous fiscal year. This growth was primarily driven by sectors such as engineering and manufacturing, banking, financial services and insurance, and the technology industry, per the report.
With an estimated 54 lakh technology experts, India provides GCCs with an abundant talent landscape, besides a competitive cost framework encompassing talent, rentals and operational costs, the report reasoned.
"The gradual upskilling of talent in existing as well as new roles and greater synergies between the private sector and educational institutions would continue to drive value creation in India," CBRE Chairman and CEO for India, South-East Asia, Middle East and Africa, Anshuman Magazine said, adding that going forward, India is likely to witness more state-of-the-art GCCs.
The growing demand for premium offices offering modern amenities, amongst GCCs, will further lead to a rise in investment towards high-quality office spaces, the report highlighted.
In the January-March period of calendar year 2024, GCCs leased 4.2 million square feet or 29% of office space in India, the report noted. Engineering and manufacturing companies accounted for over a quarter of this demand, with automobile firms following closely behind.
Between 2017-19, over 1,250 GCCs accounted for 30–35% share of total office leasing in India, employing a talent pool of 13 lakh by the end of the period. This rose to 1,580 GCCs leasing 38–43% of total office space and employing 16.6 lakh workers between 2020-22.