India’s tier-2 cities are emerging as major contenders for global capability centre expansion as enterprises increasingly look beyond traditional metro hubs for talent, infrastructure, and long-term operational scalability, according to a new report by ANSR.
The report identified several emerging Indian cities that are expected to become increasingly attractive destinations for GCC investments in 2026. Industry analysts say the shift reflects broader changes in how multinational companies evaluate location strategy, workforce availability, cost efficiency, and digital infrastructure.
Global capability centres, commonly known as GCCs, have become a central part of India’s technology and business services ecosystem. Companies across sectors including banking, healthcare, retail, manufacturing, telecom, and technology are continuing to expand their India-based operations for engineering, analytics, customer support, research, and digital transformation functions.
According to the report, enterprises are now evaluating emerging cities based on parameters including talent readiness, educational infrastructure, connectivity, business ecosystem maturity, real estate availability, quality of life, and policy support.
Industry observers note that rising operational costs and talent competition in major metro cities such as Bengaluru, Hyderabad, Mumbai, and Delhi NCR are encouraging companies to diversify expansion strategies into smaller urban markets.
ANSR reportedly highlighted that emerging cities are becoming more attractive due to improving digital infrastructure, growing engineering talent pools, and increased state-level focus on technology ecosystem development. Businesses are also seeking locations that can support long-term workforce expansion without the pressure of saturated metropolitan markets.
Technology experts say India’s GCC sector has entered a new phase where operational scale alone is no longer the primary priority. Companies are now focusing more heavily on innovation capability, AI adoption, cybersecurity operations, product engineering, and advanced analytics.
The report comes amid sustained global demand for India’s technology and business services talent. India continues to remain one of the world’s largest hubs for enterprise operations, software engineering, digital services, and back-office transformation.
Industry analysts believe tier-2 cities could play a significant role in the next wave of GCC expansion because of their growing educational ecosystems and lower infrastructure costs. Companies are increasingly looking for operational resilience and distributed workforce models following rapid shifts in workplace strategies over the past few years.
The expansion of GCCs beyond metro centres is also expected to create employment opportunities across emerging regional economies. Analysts say this could support broader economic diversification and strengthen local startup and innovation ecosystems.
State governments have increasingly introduced policies aimed at attracting enterprise investments through infrastructure incentives, technology parks, digital connectivity, and talent development initiatives. Several regions are now positioning themselves as future-ready technology and innovation hubs.
Industry observers note that AI adoption and enterprise automation are also reshaping the nature of GCC operations. Many centres are now evolving beyond support functions into strategic innovation and product development hubs handling global business operations.
The report reportedly suggests that workforce quality remains one of the strongest drivers behind GCC location decisions. Access to engineering graduates, digital skills, and specialised technology talent continues to influence enterprise investment planning significantly.
India’s GCC market has expanded rapidly over the past decade as multinational companies increased investments in digital transformation, cloud computing, AI, cybersecurity, and enterprise software operations. Industry estimates suggest the sector will continue witnessing strong growth over the coming years.
Analysts believe distributed GCC growth may also reduce pressure on major urban infrastructure while improving regional economic participation in India’s digital economy. Businesses increasingly value operational flexibility and geographic diversification within their India strategies.
At the same time, experts caution that emerging cities will need continued investment in infrastructure, transportation, urban planning, and talent development to sustain long-term GCC growth. Connectivity, quality housing, and business ecosystem maturity remain critical competitive factors.
The ANSR report highlights how India’s enterprise services landscape is gradually decentralising as companies seek scalable growth beyond traditional metro hubs. Industry observers expect tier-2 cities to play a larger role in India’s evolving technology economy as global enterprises continue expanding digital operations, innovation centres, and AI-driven business capabilities across the country in the years ahead.