The New Map of Innovation: GCC Growth Beyond Bengaluru

Introduction

When we talk about the growth of Global Capability Centres (GCCs) in India, the city that most often comes to mind is Bengaluru. For many years, Bengaluru and other Tier‑1 metros have dominated as the strategic hubs for setting up GCCs due to their ecosystem, talent pool, and infrastructure. However, the landscape is shifting. Companies are increasingly exploring new frontiers beyond Bengaluru. In this blog, we’ll outline why GCC growth is moving beyond Bengaluru, the emerging opportunities in Tier‑2 and Tier‑3 cities, and how Sansovi is uniquely positioned to help businesses tap into this evolution.

The Evolution of GCCs in India

The concept of Global Capability Centres (GCCs) in India has evolved significantly. What started as a model for cost-efficient back-office operations has matured into a powerhouse of strategic global delivery. Today, India is home to over 1,700 GCCs supporting core business functions like digital transformation, AI/ML, R&D, and product innovation.

While Bengaluru has served as a strong foundation for GCC growth India-wide, the overconcentration in one region has led companies to reevaluate their location strategies. Rising costs, talent saturation, and the demand for operational resilience are driving the decentralization of operations.

Why GCCs Are Looking Beyond Bengaluru

Key Drivers of Change:

• Cost Advantage: Operational costs in Tier-2 cities can be 25–35% lower than in Tier-1 metros.
• Talent Pool & Retention: Tier-2 cities are producing highly skilled engineering and tech graduates, with better retention rates.
• Government Incentives: States are rolling out GCC-specific policies and infrastructure support.
• Business Continuity & Risk Diversification: Multi-location strategies improve resilience against disruptions.

These factors contribute significantly to GCC growth India-wide, creating new hubs for GCC innovation.

Emerging Cities on the GCC Innovation Map

The next phase of GCC growth India will come from Tier-2 and Tier-3 cities. Locations like Coimbatore, Indore, Kochi, Jaipur, and Visakhapatnam are emerging as promising innovation clusters.

Characteristics of Emerging GCC Hubs:

• Academic Ecosystems: Proximity to engineering and tech institutions fueling the talent pipeline.
• Affordable Infrastructure: Availability of cost-effective real estate and modern office parks.
• Local Government Support: States are offering subsidies, faster clearances, and dedicated IT corridors.

These new clusters are enabling companies to tap into untapped talent markets and build innovation-driven GCCs outside the traditional metros.

Sansovi: Enabling GCC Growth in India’s Emerging Cities

At Sansovi, we have redefined how companies set up and scale their Global Capability Centres. Our unique GCC-as-a-Service model provides everything needed to build high-performing centers, especially in emerging Tier-2 and Tier-3 cities.

What We Offer:

• Site Selection & Market Analysis: Identifying optimal cities based on talent availability, infrastructure, and long-term viability.
• Infrastructure Build-out: Custom workspaces with integrated IT infrastructure and connectivity.
• Talent Acquisition & Workforce Management: Local recruitment, onboarding, training, and operational support.
• Governance & Compliance: End-to-end regulatory and legal framework management.
• Innovation Layering: We build GCCs that go beyond delivery and focus on innovation and business transformation.
• Scalable Models: Our model allows companies to scale quickly, adopt hybrid delivery, and establish multi-site operations.

By leveraging Sansovi’s capabilities, companies accelerate their GCC growth in India while embracing innovation and flexibility.

Strategic Advantages of Expanding GCCs Beyond Bengaluru

1. Talent Access & Skill Diversification

The quality of STEM education in Tier-2 cities is rising rapidly, creating a robust talent pipeline. Companies are hiring skilled professionals in areas like cloud computing, data science, cybersecurity, and automation.

2. Operational Cost Efficiency

Real estate and salary costs in Tier-2 cities are significantly lower, providing long-term savings without compromising quality.

3. Innovation & Specialization

These cities are developing specialized innovation ecosystems, often linked with local research institutions, startups, and incubators. GCC innovation thrives in such collaborative environments.

4. Lower Attrition & Improved Retention

Unlike Tier-1 cities, Tier-2 locations experience lower attrition, ensuring higher continuity and reduced rehiring costs.

5. Enhanced Government Support

Proactive state policies, infrastructure investments, and financial incentives are accelerating GCC growth India-wide.

Case Example: Expansion Beyond Bengaluru

Consider a global engineering firm with a large GCC in Bengaluru. To support rapid digital product development and reduce costs, they established a second GCC in Coimbatore:

• Result: 30% lower operational costs
• Talent: 200+ new hires with niche digital skills
• Outcome: Increased speed-to-market and innovation delivery

This case reflects a growing trend in GCC growth India: using Tier-2 cities to build agility, resilience, and innovation capabilities.

Why the Time Is Right for GCC Innovation Beyond Bengaluru

The push towards decentralization, the rise of hybrid work models, and the growing maturity of Tier-2 cities make this the ideal time for companies to rethink their GCC strategies. By adopting a distributed model, businesses can:

• Strengthen risk mitigation
• Optimize delivery cost structures
• Improve workforce diversity and engagement
• Expand their global delivery capability

Sansovi supports organizations throughout this journey, transforming traditional delivery centers into engines of GCC innovation.

Ready to explore emerging GCC hubs in India?

Conclusion

The new map of innovation in India extends far beyond Bengaluru. With rising infrastructure maturity, skilled talent pools, and a supportive policy environment, Tier-2 and Tier-3 cities are shaping the future of GCC growth India. Sansovi’s GCC-as-a-Service offering is perfectly designed to help you take advantage of these new opportunities.

Whether you’re expanding an existing center or establishing a new one, now is the time to act. Partner with Sansovi and unlock your next phase of GCC innovation and growth in India.