Smaller Cities Drive India’s Next GCC Boom
Tier-2 locations are gaining ground as companies widen hiring beyond India’s major technology hubs, ANSR report says
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Global capability centers (GCCs) are expanding faster in India’s emerging cities than in its major metros, as companies look beyond established technology hubs for talent, infrastructure and more distributed operating models, according to a new ANSR report.
Emerging cities recorded a 42% increase in GCC job openings, more than twice the 19% rise reported in major metro cities, ANSR said in ‘The Emerging Cities: India’s Next Frontier for GCC Expansion Report 2026.’
Tier-2 cities now host more than 220 GCCs, with centers in these locations expanding at an 11% compound annual growth rate.
The report assessed 14 emerging GCC locations: GIFT City, Bhubaneswar, Coimbatore, Indore, Jaipur, Kochi, Lucknow, Mangalore, Mysuru, Thiruvananthapuram, Navi Mumbai, Visakhapatnam, Bhopal and Warangal.
The cities were evaluated across talent appeal, infrastructure maturity, business and regulatory environment, and quality of life.
India has more than 1,900 GCCs employing over 2.1 million professionals and contributing more than 1.5% of the country’s gross domestic product (GDP), according to ANSR. Most centers remain concentrated in Tier-1 metros, but the report said emerging cities are becoming important complements in a more diversified GCC model.
“Enterprises that build agile, capability-led networks across a wider geographic canvas will define the next decade,” said Smitha Hemmigae, Managing Director at ANSR.
The shift is being driven by stronger infrastructure, expanded special economic zones, improved airport and metro connectivity, and policy support for new GCC locations.
The Union Budget 2025 proposed a national framework to help states build GCC-ready ecosystems in emerging cities.
ANSR said artificial intelligence is also narrowing the skill gap between major metros and smaller cities, making it easier for companies to build high-value capability teams outside traditional hubs.
The report said companies are increasingly moving from concentrated metro-based operations to distributed networks built around specific capabilities. It said emerging cities should not be viewed only as lower-cost alternatives, but as locations that can support future-focused GCC mandates.
India’s GCC sector is expected to grow to $99 billion to $105 billion by 2030 from $64.6 billion in fiscal 2024, according to a Nasscom-Zinnov report.
The number of companies with GCCs in India is projected to rise to 2,100-2,200 by 2030, employing 2.5 million to 2.8 million people.
ANSR said cities that improve digital readiness, scalable infrastructure, talent ecosystems and regulatory processes will be better placed to attract global enterprises.
The firm said it has helped build more than 200 GCCs for over 100 Fortune 500 companies across India, Eastern Europe and Southeast Asia.
