GCCs and Global Shocks: How Geopolitics Shape Office Location Strategy
Global Capability Centers (GCCs) in India have evolved from cost-saving extensions to strategic hubs driving innovation, analytics, and digital transformation for multinational corporations. But beyond talent and cost, another factor is increasingly shaping their growth trajectory-global shocks. Geopolitical shifts such as tech wars, trade tensions, and supply-chain disruptions are influencing how companies decide where to establish or expand their GCCs.
The U.S. - China technology rivalry, for instance, has accelerated a "China+1" strategy, pushing global firms to diversify operations. India, with its skilled talent pool and strong digital infrastructure, has emerged as a natural beneficiary. Similarly, ongoing trade tensions and regional conflicts are prompting firms to reduce dependency on single geographies and adopt a distributed location strategy. This means GCCs are no longer concentrated only in Tier-1 cities like Bengaluru, Hyderabad, or Gurugram, but are increasingly spreading to Tier-2 hubs such as Pune, Kochi, and Coimbatore.
Global shocks also highlight the need for business continuity and resilience. Companies are choosing office spaces in cities with robust connectivity, reliable power, and policy support to mitigate risks. At the same time, hybrid work models and flex spaces are helping GCCs stay agile during uncertain times.
For India, this geopolitical rebalancing presents a unique opportunity. By offering a stable business environment, strong digital ecosystem, and scalable office infrastructure, the country can position itself as the go-to destination for future-ready GCCs. For global firms, aligning location strategy with geopolitical realities is no longer optional-it is central to sustaining growth and ensuring operational resilience in an unpredictable world.
