India’s Global Capability Centres (GCCs) are no longer just hubs for outsourcing back-office work. They’re expanding into manufacturing and other industries, driving demand for office space.
Manufacturing joins the GCC party
The shift towards manufacturing is not just about product development; it’s also about innovation. Companies like TVS Motor and Hero MotoCorp have already set up their Global Capability Centres in India, bringing with them a significant demand for office space. These GCCs are not only handling the product development process but also spearheading innovation and research and development in their respective industries.
The Indian government’s ‘Make in India’ initiative has been a major catalyst for this shift. The program aims to boost domestic manufacturing and make India a global manufacturing hub. GCCs like those set up by Tata Motors and Maruti Suzuki are now at the forefront of this initiative, driving the demand for office space in the process.
What this means for India’s office market
The expansion of GCCs into manufacturing and other industries is set to have a significant impact on India’s office market. As more companies set up their GCCs in India, the demand for office space is expected to increase, driving up rents and property values. This trend is expected to benefit cities like Bengaluru, Hyderabad, and Chennai, which have already seen significant investment in office infrastructure.
The growth of the manufacturing sector is also expected to create new job opportunities, not just in the GCCs themselves but also in related industries. This will lead to an increase in disposable incomes, driving demand for consumer goods and services, and further fueling economic growth.
A new growth engine for India’s GCCs
The entry of manufacturing companies into India’s GCC scene marks a significant turning point for the country’s economy. As GCCs expand into new industries, they will not only drive economic growth but also create new opportunities for innovation and job creation. The impact of this trend will be felt not just in the short term but also in the long term, making India’s GCCs a major growth engine for the country’s economy.
