India’s GCC boom and its impact on a $100B market realigning for global-scale demand

The Global Capability Ecosystem (GCC) in India has embarked on a transformative phase of growth. What began with a cost optimisation initiative for multinationals has now morphed into a $100-billion-plus strategic powerhouse for innovation, digital transformation, and worldwide operations.

With over 1,600 GCCs employing over 1.6 million people, it’s a fact that a new normal with a massive concentration of global capability centers in India for a massive scale of enterprise operations has begun to take hold.

Evolving GCC

Over the past few years, the scope of GCCs have grown far beyond transaction and supporting operations. They have taken centre stage in product development, data analytics analysis, engineering, research and development initiatives, finance transformation, and corporate-wide decision-making.

With the evolving scope and range of their operations and responsibilities assigned to the GCCs, the requirements for the workspace infrastructure have also undergone a paradigm shift.

Why flexible workspaces are essential to GCC expansion

This has made flexible and managed workspaces a primary area of growth for GCC companies. Modern global companies need rapid setup times, robust security solutions, technology-enabled business functioning, and scale-up/scale-down flexibility. Managed offices provide these needs much more effectively than traditional leasing solutions, which are characterized by extended lock-in periods, CapEx investment, and a lengthy fit-out period.

Consequently, flexible workspace solutions have grown to be favoured options, or rather layouts, which a majority of GCCs take advantage of in entering or maximising their office space portfolios in key Indian markets.

GCC-led demand is reshaping Grade A office leasing

The effect of GCC demand is very evident on Grade-A office space. According to the report, total office space absorption in 2025 stood at about 59.6 million sq. ft. However, GCCs accounted for about 39% of total absorption, the highest to date.

Flexible/managed workspace providers accounted for about 20% of Grade A space. This was largely driven by enterprise and GCC demands for speed, scalability, and control, stated another report.

This ends the cyclical pattern of the pre-pandemic phases, wherein the penetration of flex space within Grade A real estate was still in the single digits. The focus of businesses has shifted to optimization and risk management of real estate.

New satellite growth markets appear in Tier II cities of GCC countries

Another critical parameter of the GCC boom in India revolves around diversification and geography. Although Bengaluru, Hyderabad, NCR, Pune, and Chennai remain the prime hubs for most of the GCC business activities, Tier-II locations have also become satellite hubs for growth. Locations such as Coimbatore, Kochi, Jaipur, Indore, Ahmedabad, and Bhubaneswar have witnessed office space leasing of 20 to 30% with GCC influence.

These facilities can sustain an average of 200 to 1,000 professionals and take advantage of cost savings of 30 to 40% over Tier I cities, besides advancements in infrastructure and availability of talent. Flexible space solutions are proving to be a boon in achieving this by providing corporate-grade infrastructure in regions where Grade A space is niche.

Talent experience and enterprise governance integrate

The intersection of GCC growth and flexible offices is further transforming the working experience for employees. GCCs are operating in a fiercely competitive talent marketplace and are facing constant pressure to acquire, retain, and develop talented professionals. Flexible work environments offer cutting-edge design, collaboration facilities, health and wellness options, and technological solutions, along with enterprise-grade management, security, and regulatory requirements.

The road ahead

Looking forward, the future of the GCC industry in India indicates a growing demand for flexible and managed workspace solutions. With GCCs set to become innovation and decision-making platforms on a global stage, their approach towards real estate will be shifting from permanence towards flexibility. Flex would not replace traditional offices, instead, will become a key part of hybrid structures.

The $100 billion GCC ecosystem in India is, therefore, a story of growth. It is also an enabler that is changing the way global companies occupy space. For flexible space, it’s a one-generation opportunity to transition from being a niche player in corporate real estate space to becoming a leader in establishing the GCC ecosystem globally.

(Sanjay Chatrath is the Co-founder and Managing Partner of Incuspaze, a workspace provider)