Till now, India’s Global Capability Center (GCC) story has been synonymous with six powerhouse cities: Bengaluru, Hyderabad, Pune, Chennai, Mumbai, and Delhi-NCR. These metropolitan hubs have collectively hosted over 90% of India’s GCC ecosystem, serving as the undisputed magnets for multinational corporations seeking offshore innovation centers. However, 2026 is witnessing a seismic shift in this narrative, one that’s redefining where global enterprises choose to establish their next innovation hubs.
The numbers tell a compelling story. As per a study titled GCC Tier 2 Report 2025, by In Common, a specialised GCC operator, India is home to around 1,800 GCCs generating revenue of around $65 billion, with projections to rise to about 2,400 GCCs by 2030, with revenue set to cross $100 billion. More significantly, the share of GCCs in Tier II cities has increased from 5% in 2019 to 7% in 2025. With a 25% lower cost base, 20–30% lower attrition, and a rapidly expanding STEM talent pool, these cities are enabling organisations to scale faster while driving inclusive economic growth.
Here’s a detailed look at five Tier-2 cities that stand out as strong contenders for GCCs.
- Pune
Pune has emerged as a preferred location for technology-led GCCs, backed by a robust IT landscape, a deep pool of skilled professionals, and well-established academic institutions. The city is already home to more than 360 active GCCs, positioning it as one of India’s most mature Tier-2 hubs. Its GCC ecosystem is strongly skewed towards BFSI (30%), followed by Manufacturing (26%) and Technology (21%). With its continuously evolving and specialized talent base, Pune is on track to accommodate over 500 GCCs by 2030, reinforcing its status as a future-ready GCC destination. - Coimbatore
Coimbatore, often called the “Manchester of South India”, has evolved from a strong manufacturing, textiles, and engineering base into a fast-emerging IT and software services hub, making it an attractive Tier-2 destination for Global Capability Centers. Supported by established IT parks such as TIDEL Park and KGISL IT Park, a steady pipeline of engineering and IT talent from leading institutions, and a business-friendly policy environment, the city offers a rare combination of scale, skill, and cost efficiency. Over the last five years, Coimbatore has recorded an estimated 21% CAGR in new GCC setups, rivaling several Tier-1 cities, while delivering 30-40% lower operational and real estate costs compared to Chennai and Bengaluru, positioning it as a high-growth, value-driven GCC location. - Bhubaneswar
Bhubaneswar has rapidly positioned itself as one of India’s fastest-growing technology and business destinations, gaining a reputation for being highly supportive of enterprise growth. The city hosts an expanding mix of IT services firms, financial institutions, and startups, underpinned by a well-planned urban ecosystem. A strong presence of global players such as Infosys, Wipro, TCS, and Accenture has helped establish a mature IT foundation, while state-led initiatives like Infocity and Infovalley continue to attract large-scale investments. Bhubaneswar also benefits from a steady supply of skilled engineering and management talent from institutions such as KIIT and Utkal University. Combined with significantly lower costs for real estate, talent, and utilities compared to major IT metros, the city stands out as a cost-efficient, government-backed GCC destination for organizations seeking to build or expand operations in Eastern India. - Jaipur
Jaipur’s expanding technology landscape is anchored by large-scale developments such as Mahindra World City IT SEZ, which has drawn several multinational enterprises to the region. The city benefits from a strong and diverse talent pipeline, supported by premier institutions like IIT, MNIT, and a network of private engineering colleges that cater to IT and BPO skill requirements. Its strategic location ensures seamless connectivity to Delhi and other major hubs through well-developed air, road, and rail networks. From a cost perspective, Jaipur delivers substantial savings on compensation, commercial real estate, and overall living expenses when compared to NCR markets like Delhi and Gurugram. Backed by proactive government support and a steadily maturing tech ecosystem, Jaipur is emerging as a compelling GCC hub in North India. - Ahmedabad
Ahmedabad has established itself as one of India’s most enterprise-friendly cities, supported by a strong convergence of IT services, financial institutions, and large-scale industrial activity. With a growing footprint of global corporations and technology firms, the city is increasingly viewed as a high-potential hub for Global Capability Centers.
The presence of over 140 GCCs and IT-led enterprises highlights Ahmedabad’s maturity as an offshore destination. A key differentiator is GIFT City, India’s flagship global financial and technology hub, which continues to attract fintech, IT services, and outsourcing organizations. The city also offers a solid business backbone, with modern commercial office spaces, SEZs, and industrial clusters designed to support global delivery models. Talent availability further strengthens its case, with premier institutions such as IIM Ahmedabad, Nirma University, and DAIICT supplying a steady stream of highly skilled graduates. Together, Ahmedabad’s pro-business policies, strong infrastructure, and talent ecosystem position it among India’s leading GCC destinations.
The Emerging Hub-and-Spoke Model
Forward-thinking companies are adopting a sophisticated hub-and-spoke approach to their GCC strategies. Tier-I cities like Bengaluru or Hyderabad serve as major hubs, while Tier-II cities function as specialized spokes. This model allows organizations to leverage the deep expertise and ecosystem advantages of metros for core innovation work, while distributing specialized functions, support operations, and domain-specific R&D to Tier-2 locations.
Real-world examples illustrate this trend: Eisai Pharma launched a GCC in Visakhapatnam focused on digital healthcare and data science, Pernod Ricard established operations in Nashik, Flex set up in Coimbatore, and Infinx Healthcare opened an AI-powered delivery center in Madurai creating 700 jobs. These are innovation-driven units handling analytics, product development, and cutting-edge technology implementation.
The Challenges That Remain
Despite the momentum, Tier-2 expansion faces legitimate challenges. Talent aspirations remain a concern, as professionals from these cities often seek metro opportunities for higher compensation and exposure to premium projects. The availability of senior leadership talent, especially those who can mentor teams and drive strategic initiatives, remains more limited compared to established metros.
Infrastructure, while improving, still requires maturation in areas like co-working ecosystems, international schools, healthcare facilities, and lifestyle amenities that attract and retain top talent. The ability to scale rapidly can also be constrained, as most Tier-2 GCC establishments are second or third units supporting primary metro locations rather than standalone flagship centers.
Looking Ahead: The 2026 Inflection Point
As we progress through 2026, the trajectory is clear: Tier-2 cities are transitioning from peripheral alternatives to strategic imperatives in GCC location planning. Industry projections suggest that by 2028, Tier-2 locations could host 30-40% of India’s 2,000+ GCCs, representing a fundamental shift in the country’s capability center landscape.
For organizations planning their next GCC investment, the question is no longer whether to consider Tier-2 cities, but rather which cities align best with their specific talent needs, industry focus, and growth trajectory. The winners in this new era will be those who recognize that innovation requires the right combination of talent, infrastructure, cost efficiency, and strategic vision.
The Tier-2 takeover of 2026 is about reimagining where and how global innovation happens in an increasingly connected world. As Astravise Services continues to guide organizations through their GCC journey, we’re witnessing firsthand how these emerging hubs are writing the next chapter in India’s global capability story.
How Astravise Services Can Help Navigate Your Tier-2 GCC Journey
At Astravise Services Pvt Ltd, we specialize in helping global enterprises unlock the full potential of India’s evolving GCC landscape. Our sector-specific expertise spanning across all business functions is in the following industries:
- Banking and Financial Services (BFSI) – Optimize financial compliance, risk, and customer operations through intelligent automation and customized talent pool.
- Healthcare & Life Sciences: Accelerate clinical support, regulatory & risk management, analytics & reporting and intelligent R&D with specialized global capability hubs.
- Logistics & Supply Chain: Digitization & carbon footprint tracking, & Automation, Data Analytics, & Supply Chain operations, & ESG reporting.
- Ed-Tech and Publishing: Drive learner experience, content development, and platform innovation through agile GCC models.
- Telecom: Support 24/7 network operations, customer care, and emerging tech like 5G and IoT with scalable GCCs.
Our local market intelligence, government liaison capabilities, and proven track record in establishing successful GCCs across diverse Indian geographies position us as your ideal partner in capitalizing on the Tier-2 opportunity. As the GCC ecosystem undergoes this historic transformation, Astravise Services stands ready to help you make informed decisions that balance cost efficiency, talent access, and long-term scalability, ensuring your next innovation hub thrives, regardless of its pin code.