Commercial
Role of GCCs in India’s Rising Managed Office Space Demand
February 25, 2025
The commercial real estate landscape in India is transforming incredibly. At the centre of it all are the GCCs - Global Capability Centres in India. As companies seek to source service-based innovation from India for strategic and operational capabilities, the need for agile, scalable, and managed office spaces is surging.
Imagine vibrant office environments with infrastructure of state-of-the-art quality, collaborative work zones, and services that seamlessly adapt to dynamic business needs. The GCC's growth sets off this new norm. The managed GCCs no longer relate to the old traditional leased offices but embrace all sorts of managed spaces, which will have better flexibility and operation efficiency.
In this blog, we look at how GCCs are transforming the managed office space sector in India, why their preferences are changing, and what this implies for businesses, real estate developers, and the future of workspaces.
Overview of GCCs in India
Global Capability Centres are offshore units that manage operations for multinational corporations (MNCs). Initially conceived as low-cost back-office functions, GCCs have been remodelled into strategic innovation, research and development and core business process locations.
As of 2024, India has around 1,700 GCCs and employs more than 1.9 million people. Projections indicate a growth to 2,100–2,200 GCCs and 2.5–2.8 million employees by 2030. This demonstrates India's attractiveness as a global destination for skilled talent, technological infrastructure and cost efficiencies.
This extension of GCCs has formed India's commercial real estate environment, remarkably shaping office space demand and leasing trends. The rise in managed office spaces and the growth of coworking trends are integral parts of various commercial real estate projects that support the needs of GCCs and other businesses.
Surge in Managed Office Space Demand
Managed office spaces are customised, fully serviced workspaces that are flexible, scalable and convenient. Unlike traditional offices, which third-party operators manage. With managed office spaces free companies from administrative burdens like maintenance, utilities and technology setup.
This model has been highly appealing to businesses that must remain agile in a rapidly changing environment.
Coworking trends are rising, with escalating Grade A office space demand and the GCCs directing commercial real estate growth. The coworking space lease market registered a peak value of 12.5 million square feet in 2024, which rose 44% over the previous year.
Role of GCCs in Driving Demand for Managed Office Spaces
GCCs have become major users of managed office spaces. By 2025, they are set to lease at least 45–50 million square feet of Grade A office space. Bengaluru’s office market is the trend leader in this respect, accounting for 34% of GCC leasing activity.
Factors Influencing GCCs' Preference for Managed Spaces
Flexibility: Managed office spaces are dynamic and scalable.
Cost Efficiency: Lower capital expenditure with shared infrastructure.
Access to Talent Hubs: Proximity to skilled workforce.
Focus on Core Functions: GCCs can focus on strategic work.
Enhanced Employee Experience: Wellness-oriented modern workplaces.
The shift toward hybrid work models has also influenced GCC preferences.
Drivers for Growth in Managed Office Space Demand
| Driver | Explanation |
|---|---|
| Hybrid Work Models | Need flexible workspaces for changing workforce sizes |
| Post-Pandemic Recovery | Upsurge in demand for efficient and flexible workspaces |
| Cost Optimisation | Lower overheads and scalable solutions |
| Technological Advancements | Need for tech-enabled, advanced infrastructure |
Regional Trends and Key Markets
- Bengaluru: Holds the maximum number of GCCs.
- Hyderabad: Rapid development with IT parks and SEZs.
- Mumbai: Financial hub attracting BFSI GCCs.
These cities have seen a positive ripple effect on their commercial real estate growth.
The Future
The expansion of GCCs will impact India’s managed office space market with rising demand for grade-A commercial real estate.
Providers must incorporate sustainable practices, smart technologies and strong security standards.
Conclusion
The expansions in GCCs correspond with surges in demand for serviced offices. Managed office spaces will continue to be a core part of India’s corporate infrastructure.
Sources:
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