InCommon has released its GCC Tier 2 Report 2025, revealing a major shift in India’s Global Capability Center (GCC) ecosystem as Tier-2 cities rapidly rise as the next frontier for enterprise expansion, digital engineering, and global operations.
Tier-2 Cities: The New Growth Engines of India’s GCC Landscape
India’s Tier-2 cities are expanding their role in the GCC ecosystem with remarkable speed.
- GCC share in Tier-2 cities grew from 5% in 2019 to 7% in 2025.
- India now hosts 1,700+ active GCCs, with 170+ centers in 18 Tier-2 cities.
- Nearly two new GCCs are being launched every week, signalling strong enterprise confidence in regional markets.
Key Tier-2 GCC destinations now include Ahmedabad, Vadodara, Indore, Bhubaneswar, Coimbatore, Kochi, Lucknow, Jaipur, Nagpur, and Mysuru.
High-Value Digital & Engineering Workflows Move Beyond Metros
The report highlights a clear strategic shift: Tier-2 GCCs are no longer just cost-optimization units—they are becoming technology and innovation hubs.
Top focus areas include:
- AI & Data Engineering
- Software & Platform Development
- Product R&D
- Cloud & Cybersecurity
Proactive state governments—especially Tamil Nadu, Karnataka, Uttar Pradesh, and Gujarat—are fueling this growth with supportive policy frameworks and infrastructure investments.
Why Tier-2 Cities Are Winning the GCC Race
Piyush Kedia, Co-founder & CEO, InCommon, emphasizes the competitive advantage of Tier-2 hubs:
“Tier-2 hubs are no longer secondary options—they are becoming core digital and R&D ecosystems. With a 25% lower cost base, 20–30% lower attrition, and expanding STEM talent, organizations can scale faster while achieving sustainable growth.”
Regional Strengths Redefining India’s GCC Map
Each Tier-2 cluster is emerging with specialized strengths:
- Bhubaneswar & Vadodara: Semiconductor, Engineering & R&D
- Kochi & Warangal: Cloud, Digital Engineering & Fintech
- Coimbatore, Indore & Ahmedabad: Multi-sector innovation clusters with strong academic linkages
This diversification is enabling enterprises to build multi-location, risk-resilient GCC networks.
A Balanced, Resilient Future for India’s GCC Ecosystem
The InCommon Tier 2 GCC Report 2025 concludes that India’s Tier-2 cities are now mirroring—and in some ways outperforming—the growth trajectory once seen in Tier-1 hubs.
With better policy backing and learnings from earlier GCC phases, Tier-2 India is shaping a more inclusive, distributed, and innovation-driven GCC landscape that will power the next decade of global enterprise transformation.
Visit Our News section and follow us on LinkedIn and Twitter
Read more full news: Here
