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Bengaluru: India’s global capability centre (GCC) landscape is entering a new phase, with emerging cities increasingly becoming strategic hubs for expansion beyond traditional metros, finds a new report.
According to ANSR’s Emerging Cities: India’s Next Frontier for GCC Expansion–Report 2026, there is a major shift in enterprise strategy--companies are moving from a concentration-led model to a more distributed and resilient GCC network.
India continues to remain the world’s largest and most diverse GCC destination, but enterprises are now reassessing their footprint strategies due to evolving talent and technology needs. Rather than relying solely on large-scale hiring in tier-1 cities such as Bengaluru, Hyderabad, Pune, Chennai, Mumbai, and NCR, organisations are increasingly looking at emerging cities as complementary capability centres.
Also Read: Housing sales in top 75 cities rise 16 pc to Rs 9.33 lakh cr in FY26: Liases Foras
"A key driver behind this transition is the changing nature of work. The rise of AI, automation, and low-code/no-code platforms is reshaping workforce models, enabling companies to operate with leaner but highly skilled teams. Organisations are prioritising 'T-shaped talent' — professionals with deep technology expertise combined with broader business understanding, which reduces dependence on massive hiring volumes and increases the viability of smaller, specialised teams in emerging cities," ANSR managing director Smitha Hemmigae told ET.
Emerging cities are gaining traction because of improving infrastructure, better connectivity, expanding university ecosystems, competitive operating costs, and proactive state government policies. The report also points to access to underutilised talent pools, lower attrition, and stronger workforce stability as major advantages over saturated metro markets.
The report evaluated 14 emerging GCC locations–GIFT City, Bhubaneswar, Coimbatore, Indore, Jaipur, Kochi, Lucknow, Mangalore, Mysuru, Thiruvananthapuram, Navi Mumbai, Visakhapatnam, Bhopal and Warangal--across four strategic pillars: talent attractiveness, infrastructure readiness, business and regulatory environment, and quality of life.
State governments are also aggressively competing for GCC investments through payroll subsidies, skilling grants, EPF reimbursements, single-window clearances, and dedicated GCC policies aimed at accelerating regional economic growth, Hemmigae said.
Among the standout locations is Gujarat’s GIFT City, which has gained momentum due to tax incentives, GST exemptions, and strong policy backing. The region is attracting financial services GCCs, aided by a growing ecosystem of banks, technology companies, and service providers. The city already has the presence of major players such as Bank of America, Infosys, Wipro, and Google, alongside expanding infrastructure and AI-focused investments.
Also Read: Not Mumbai or Bengaluru, this 'emerging' city becomes Indian elites' top choice for buying luxury homes above ₹10 crore
Coimbatore has also emerged as a mature GCC market with strong manufacturing and engineering talent, supported by institutions such as PSG Tech and Coimbatore Institute of Technology. Companies are leveraging the city’s lower cost of living, operational affordability, and industrial ecosystem to expand R&D, supply chain, and engineering operations. Similarly, Vizag is positioning itself as a fast-growing technology hub through aggressive government outreach, AI infrastructure investments, and proactive policy support.
There is also growing traction seen in cities such as Thiruvananthapuram, Navi Mumbai and Indore, where governments are offering payroll subsidies, skilling grants, rental assistance, and single-window clearances to attract investments. Companies are increasingly viewing these markets as viable long-term locations for AI, analytics, finance and technology operations, reflecting a broader shift in India’s GCC landscape beyond traditional hubs like Bengaluru and Hyderabad.
According to ANSR, enterprises are increasingly adopting “hub-plus-one” models, where emerging cities serve as specialised nodes for functions such as cybersecurity, AI operations, test engineering, digital risk and analytics. The report argues that GCC expansion in India will increasingly be defined not just by scale, but by geographic diversification, capability depth, and ecosystem maturity, positioning emerging cities at the centre of the next wave of global enterprise growth.
India is home to 1,900+ GCCs employing over 2.1 million professionals, a model that now contributes more than 1.5% of the country's GDP. With emerging cities already hosting 220+ GCC units and growing at nearly 11% CAGR, the geographic centre of gravity of India's GCC landscape is decisively shifting.
According to ANSR’s Emerging Cities: India’s Next Frontier for GCC Expansion–Report 2026, there is a major shift in enterprise strategy--companies are moving from a concentration-led model to a more distributed and resilient GCC network.
India continues to remain the world’s largest and most diverse GCC destination, but enterprises are now reassessing their footprint strategies due to evolving talent and technology needs. Rather than relying solely on large-scale hiring in tier-1 cities such as Bengaluru, Hyderabad, Pune, Chennai, Mumbai, and NCR, organisations are increasingly looking at emerging cities as complementary capability centres.
Also Read: Housing sales in top 75 cities rise 16 pc to Rs 9.33 lakh cr in FY26: Liases Foras
"A key driver behind this transition is the changing nature of work. The rise of AI, automation, and low-code/no-code platforms is reshaping workforce models, enabling companies to operate with leaner but highly skilled teams. Organisations are prioritising 'T-shaped talent' — professionals with deep technology expertise combined with broader business understanding, which reduces dependence on massive hiring volumes and increases the viability of smaller, specialised teams in emerging cities," ANSR managing director Smitha Hemmigae told ET.
Emerging cities are gaining traction because of improving infrastructure, better connectivity, expanding university ecosystems, competitive operating costs, and proactive state government policies. The report also points to access to underutilised talent pools, lower attrition, and stronger workforce stability as major advantages over saturated metro markets.
The report evaluated 14 emerging GCC locations–GIFT City, Bhubaneswar, Coimbatore, Indore, Jaipur, Kochi, Lucknow, Mangalore, Mysuru, Thiruvananthapuram, Navi Mumbai, Visakhapatnam, Bhopal and Warangal--across four strategic pillars: talent attractiveness, infrastructure readiness, business and regulatory environment, and quality of life.
State governments are also aggressively competing for GCC investments through payroll subsidies, skilling grants, EPF reimbursements, single-window clearances, and dedicated GCC policies aimed at accelerating regional economic growth, Hemmigae said.
Among the standout locations is Gujarat’s GIFT City, which has gained momentum due to tax incentives, GST exemptions, and strong policy backing. The region is attracting financial services GCCs, aided by a growing ecosystem of banks, technology companies, and service providers. The city already has the presence of major players such as Bank of America, Infosys, Wipro, and Google, alongside expanding infrastructure and AI-focused investments.
Also Read: Not Mumbai or Bengaluru, this 'emerging' city becomes Indian elites' top choice for buying luxury homes above ₹10 crore
Coimbatore has also emerged as a mature GCC market with strong manufacturing and engineering talent, supported by institutions such as PSG Tech and Coimbatore Institute of Technology. Companies are leveraging the city’s lower cost of living, operational affordability, and industrial ecosystem to expand R&D, supply chain, and engineering operations. Similarly, Vizag is positioning itself as a fast-growing technology hub through aggressive government outreach, AI infrastructure investments, and proactive policy support.
There is also growing traction seen in cities such as Thiruvananthapuram, Navi Mumbai and Indore, where governments are offering payroll subsidies, skilling grants, rental assistance, and single-window clearances to attract investments. Companies are increasingly viewing these markets as viable long-term locations for AI, analytics, finance and technology operations, reflecting a broader shift in India’s GCC landscape beyond traditional hubs like Bengaluru and Hyderabad.
According to ANSR, enterprises are increasingly adopting “hub-plus-one” models, where emerging cities serve as specialised nodes for functions such as cybersecurity, AI operations, test engineering, digital risk and analytics. The report argues that GCC expansion in India will increasingly be defined not just by scale, but by geographic diversification, capability depth, and ecosystem maturity, positioning emerging cities at the centre of the next wave of global enterprise growth.
India is home to 1,900+ GCCs employing over 2.1 million professionals, a model that now contributes more than 1.5% of the country's GDP. With emerging cities already hosting 220+ GCC units and growing at nearly 11% CAGR, the geographic centre of gravity of India's GCC landscape is decisively shifting.
