GCCs are changing how global businesses operate, innovate, and scale. From once being viewed merely as cost-saving hubs, several GCCs have grown into becoming strategic growth engines. They have done so by harnessing global talent, the latest technologies, and elevated operational efficiencies. India leads this space today due to its rich talent pool and sound IT infrastructure.
However, for mid-sized companies looking to set up GCCs, the traditional Tier-1 cities may not be the safest bets anymore. For Bangalore, Hyderabad, and Pune well-established hubs-the rise of costs, talent saturation, and bottlenecks in infrastructure are some of the key challenges that could get in the way of growth ambitions even before they have a chance to take flight.
On the other hand, new opportunities are emerging in other cities in India, given its evolving policy landscape. Indeed, with fresh government incentives, improved infrastructure, and sector-focused growth zones, these emerging cities are turning out to be viable alternatives pretty fast. Places like Kochi and Trivandrum are stepping into the limelight and offering a perfect blend of affordability, talent accessibility, and future-ready infrastructure.
It is now time for mid-sized enterprises to look beyond the traditional hubs and explore emerging opportunities in India's new destinations, which will establish resilient, scalable, and competitive GCCs. This article highlights the risks of sticking to conventional hubs, highlights opportunities in emerging cities, and lays out a roadmap for success in the evolving GCC landscape.
Increased Competition for Talent
The traditional GCC locations are getting flooded with multinational companies and big enterprises, which makes it difficult for mid-sized companies to acquire and hold on to the cream of the talent pool. High attrition rates, inflated salary expectations, and fierce competition for niche skills often lead to higher operational costs.
Soaring Costs of Real Estate
The prices of commercial real estate have shot through the roof in major GCC hubs. Firms have to invest heavily to secure good office space, and more often than not, this leads to budget overruns. For mid-sized organizations with tighter budgets, this could be a big bottleneck.
Infrastructure Bottlenecks
However, even traditional centers, despite being technological hubs, have traffic congestion, insufficient public transportation systems, and highly overburdened infrastructure. Such factors contribute to a general effect on employee satisfaction, commute times, and overall productivity.
Scaling Limitations
Mid-sized GCCs often struggle to scale operations in these saturated cities. Finding larger office spaces, expanding teams, and maintaining compliance with local regulations can be arduous, hampering long-term growth prospects.
The above challenges mean that there is a growing need to explore Tier-2 and Tier-3 emerging cities in India.
Cost-Effectiveness and Talent Acquisition:
These emerging cities provide affordable real estate options and lower operational costs, enabling mid-sized companies to stretch their budgets without compromising quality.
Skilled graduates are being churned out from educational institutions across the country, not just metros. Top engineering and management colleges in Kochi are making high-quality talent available at competitive salary levels.
Enhanced Employee Satisfaction
Better Quality of Life, Lower living costs, shorter commutes, and better work-life balances are some of the reasons employees in Tier-2 and Tier-3 cities contribute to higher retention rates and greater job satisfaction.
Growing Ecosystems
The government’s Smart Cities initiative and investments in infrastructure are transforming smaller cities into thriving business hubs. Improved connectivity, modern office spaces, and tech parks make these cities GCC-ready.
The Indian government is cognizant of their importance. That’s why they are crafting a new umbrella policy aimed at attracting more GCCs, particularly in tier-2 and tier-3 cities, to ensure widespread economic benefits.
1. Early Investment in Training Programs
Establishing partnerships with local educational institutions can create a pipeline of skilled talent trained specifically for GCC operations. Upskilling employees ensures long-term retention and adaptability to evolving technologies.
2. Focus on Employer Branding
Emerging cities may lack established corporate environments, making employer branding essential to attract top talent. Promoting company culture, growth opportunities, and workplace flexibility can help build credibility.
3. Adopt Agile Operating Models
Hybrid work models, distributed teams, and digital collaboration tools improve seamless operations regardless of geographical location. Companies must give importance to agility to remain competitive.
4. Cultural Fit
Understand the cultural dynamics and work ethics in the region. Building a GCC isn’t just about physical infrastructure; aligning organizational values with local culture is equally important.
5. Adopting a phased approach
The GCC landscape is changing fast in India, and mid-size enterprises just have no option but to move along. The traditional hubs, once thought to be the ultimate destination, are beginning to reveal some serious inhibitors of growth. On the contrary, cities like Kochi have turned up as viable options promising the right blend of affordability, scalability, and modern infrastructure.
Among them, Kochi shines with its fast-developing talent pool, affordable operations, and strong connectivity. With its thriving technology provider ecosystem coupled with government incentives, it's really innovation-ready for companies intending to create or expand GCCs. On the other side, going to Kochi could also allow mid-size firms to avoid the pain of overcrowded metros and unlock the hitherto unknown potential to scale and be agile.
Diversification into emerging locations is, therefore, one strategic move that reduces operational risks but at the same time creates opportunities for scalability, acquiring the right talent, continuity, and long-term sustainability. This provides a pathway for the future-proofing of operations while sustaining competitive advantage in global markets.
Gadgeon is the partner of choice, trusted to develop these opportunities at scale for this mid-size growth. At Gadgeon, this is correctly enabled with domain knowledge allied with contemporary cutting-edge technologies wherein businesses are encouraged to design, set up, and grow GCC’s inefficient operations through innovation-driven practices.
The typical strategies stand as a barrier in the path to your GCC goals. Now is the time to envisage the opportunities that Kochi presents and unlock new paths of growth by building a scalable future with Gadgeon on board.
