InCommon Report Finds Tier-2 Cities Driving the Next Wave of Global Capability Centre Growth in India

InCommon has released its GCC Tier-2 Report 2025, spotlighting the accelerating rise of Global Capability Centres (GCCs) in India’s Tier-2 cities and their growing importance in shaping the next phase of global enterprise expansion.

The report shows a clear shift beyond metro-centric growth. Tier-2 cities now account for 7% of India’s GCC footprint, up from 5% in 2019, signaling increasing confidence among global enterprises in regional markets. India currently hosts over 1,700 active GCCs, with more than 170 GCCs operating across 18 Tier-2 cities—including Ahmedabad, Vadodara, Indore, Bhubaneswar, Coimbatore, Kochi, Lucknow, Jaipur, Nagpur, and Mysuru. Nearly two new GCCs are launched every week, reinforcing the momentum behind India’s expanding GCC ecosystem.

Once seen primarily as cost-effective alternatives, Tier-2 cities are now hosting high-value, technology-driven GCCs focused on:

• AI and data engineering

• Software and platform development

• Product R&D

• Cloud infrastructure and cybersecurity

States such as Tamil Nadu, Karnataka, Uttar Pradesh, and Gujarat are accelerating this transition through focused policies, infrastructure development, and ecosystem investments that encourage enterprises to build deeper operational capabilities beyond metropolitan centers.

“Tier-2 hubs are no longer secondary options—they are becoming core innovation ecosystems for digital engineering and R&D,”
said Piyush Kedia, Co-founder and CEO, InCommon.
“With a 25% lower cost base, 20–30% lower attrition, and a rapidly growing STEM talent pool, these cities enable organisations to scale faster while supporting inclusive economic growth.”

Distinct Regional Strengths Drive Distributed Growth

The report also highlights how specialized regional strengths are shaping Tier-2 expansion:

Bhubaneswar and Vadodara are emerging as hubs for semiconductors and advanced R&D

Kochi and Warangal are strengthening their presence in digital engineering, cloud, and fintech

Coimbatore, Indore, and Ahmedabad are evolving into multi-sector innovation clusters, supported by strong academic institutions and proactive state policies

A More Balanced and Resilient GCC Future

According to the report, Tier-2 cities are now following a growth trajectory similar to Tier-1 hubs—but with stronger policy support and the advantage of lessons learned from earlier waves of GCC expansion. This evolution is fostering a more resilient, regionally balanced, and inclusive GCC ecosystem, poised to define the next decade of India’s global enterprise transformation.