Research

India
2024

Office Guide
for GCCs
A ready reckoner to help you set up JLL.co.in
a Global Capability Centre in India
What’s in this guide?

Initially set up to save costs and help organisations with their business functions, Global Capability Centres (GCCs) have significantly made their presence felt in India.
Today, the country is home to over 1,700 such centres established by top multinational corporations, to serve the global and regional market with more efficiency.

If you are a landlord, developer, investor or a GCC looking to expand in India, this guide is a one-stop solution. We’ve covered the fundamentals, from where you can set up
to how you can design your office for enhanced productivity.

Read through to derive actionable insights, particularly from the perspective of real estate planning.

202.6 mn sq ft 58% share of 44% share of GCCs in 51% share of GCCs

Grade A stock Americas - active, ongoing space in pre-commitments
occupied by GCCs headquartered firms in requirements across for the next 12 month
in the top 6 cities area occupied by GCCs the top six cities upcoming supply

1,790+
Number of GCCs in
India across 1400+
unique global
occupiers

8.2 mn sq ft 3/4th share of Bengaluru 65% combined 42% share of

of leasing and Hyderabad in share of IT/ITeS Bengaluru in
done by GCCs space leased by GCCs in & BFSI GCCs space occupied
in H1 2022 H1 2022 by GCCs

Source: JLL Research, CRE Matrix

Office Guide for GCCs - A ready reckoner to help you set up a Global Capability Centre in India 3
 Early 2000s 2005-12 2013-14 onwards

Captive Centres limited to BPOs Growth of GICs Opening of Centres of Excellence

In the early 2000s, global firms looked at Captive centres became progressively more value- Increasing focus on high-value activities such
entering India to set up captive centres post accretive in nature and driving process efficiencies by as digitisation, building competencies around
the tech and outsourcing boom. The low-cost taking up end-to-end ownership of the entire global emerging new-age technologies like artificial
talent pool and RE costs were big drivers for product lifecycle intelligence (AI), machine learning, data science
setting up their captive centres blockchain technologies, analytics and product
Talent pool utilisation was enhanced with the aim conceptualisation and vendor management
GCCs focused on the back office and business towards creating R&D capabilities and enhancing delivery
support functions and IT support services in and process excellence creating Global in-house centres India increasingly seen as one of the best
the form of maintenance and help desks available destinations for global firms to set up
Global In-house centres started undergoing a their Centres of Excellence (CoEs) across multi-
Major activities were limited to BPO transformative shift towards becoming GCCs, driving function portfolios - Engineering Research &
functions such as data processing, document digital transformation and innovation across the Development (ER&D), IT, BFSI and Others
management, & customer care organisation product and service capability ecosystem

Office Guide for GCCs - A ready reckoner to help you set up a Global Capability Centre in India 4
Why India?

India is the land of many. And as a large commercial market, it has everything!

As the services sector has evolved in India and the country has emerged at the forefront of tech-driven innovation, GCCs have moved up the value chain as well, making
India the engine for their next stage of growth. With strategic R&D and business innovation related workstreams taking centre stage, more and more global firms have
looked at tapping into India for driving the next stage of their business growth. Be it managing costs effectively, having access to a large talent pool or availability of experts
in digital transformation, India offers enterprising leadership and acumen to all kinds of businesses, from technology, startups to service providers.

In short, the country becomes a melting pot of diverse business ecosystems that help a business flourish.

GCCs consider India a key destination and contributor in their next stage of evolution and are now investing in setting up incubators, accelerators, and multiple partner
programs to drive collaboration with Indian startups and educational centres of excellence.

What makes India the preferred choice

Talent Hub Quality infrastructure Government incentives

With migration and reverse migration becoming The country has space and the potential to Central as well as state governments offer many
a reality during the pandemic, quality talent is expand. Easy access though roads, airports in incentives to companies to set up operations
available across the country. With remote and major cities and other facilities are of great help. in cities and create employment opportunities.
hybrid work models, a lowered cost of living has Additionally, electricity and reliable internet To complement this, the country’s FDI and tax
become an incentive for this talent too. connectivity is no longer limited to the major regimes are also tweaked to make them more
metropolitans. business friendly.

Office Guide for GCCs - A ready reckoner to help you set up a Global Capability Centre in India 5
What are the different types of global capability centres that can be set up?

Global capability centres can be of several types. The common ones include:

1 2 3 4 5
Shared service centres R&D centres Knowledge centres Innovation centres Customer service centres

These centres help centralise Focused on research and These centres are meant to Focused on creating a hub These centres offer a range of
and standardise certain development, these centres help organisations remotely for ideas, innovation centres services to assist customers
functions of the parent are innovation hubs for new share information. They are foster innovation and in any way possible. They
organisation. They provide products, technologies, and responsible for collating and creativity with opportunities are usually responsible for
several services, like finance, processes. Normally, R&D disseminating knowledge for collaboration. These managing customer inquiries,
HR, IT, and procurement, at centres are oriented towards within the organisation and centres are where complaints, and feedback.
a particular field where
one place, thereby improving across geographies. companies can develop new
the parent organisation
efficiency and lowering costs. ideas, conduct research, and
has shown high levels of
build prototypes.
expertise and specialisation.

You should choose the type of global capacity centre you want to set up based on your specific business needs and objectives. While you consider your options, you must
factor in your organization’s goals, budget, and vision for the future too.

Office Guide for GCCs - A ready reckoner to help you set up a Global Capability Centre in India 6
Which city suits which type of GCC?

There are several Indian cities that are considered ideal for a GCC due to their strong infrastructure, skilled workforce, and favourable business environment. For example:

Bengaluru Chennai Delhi NCR

The “Silicon Valley of India” is home to about 460 The current pre-commitment for the forecast supply till With its diverse economy and readily available
GCCs today. It garners attention from the ever-evolving 2023 stands at around 10 mn sq ft and Chennai has the pool of highly skilled professionals, Delhi NCR
tech industry, along with renowned educational and highest share in terms of GCC occupiers. Chennai has has become the hub for GCCs that operate in
research institutions. For GCCs that are keen to focus on proved its mettle with GCCs that operate in multiple various sectors. If you are looking to set up in
technology, R&D or innovation, or even retail, this city sectors, including IT/ITeS, BFSI and ER&D (Manufacturing the IT, BFSI, e-commerce and retail, healthcare,
comes through as the ideal choice. & Industrial). So if you are planning to expand in any of consulting or education sector, Delhi NCR would
these industries, the city is ready for you! best meet your requirements.

Hyderabad Mumbai Pune

More than 16% of the GCC stock in India is concentrated As India’s financial and commercial capital, Mumbai Pune has emerged as a growing hub for
in Hyderabad. Besides being the location of some of the is home to several major banks, financial institutions, information technology, engineering, and
top research universities in the country, this city is a and multinational corporations. So, if your GCC caters manufacturing. In fact, many companies operating
major hub for information technology, biotechnology, to the BFSI sector, Mumbai would make the perfect in these sectors have already set up offices in the
and pharmaceuticals. This makes it an ideal location location for it. city for the same reason.
for a GCC that focuses on these industries.

There are multiple factors that determine the correct location, size etc. for your captive centre. While IT/ITeS companies primarily choose to set up in cities like Bengaluru
and Hyderabad, Mumbai, Pune, and Chennai are not far behind. In fact, emerging cities like Ahmedabad, Coimbatore, Lucknow, and Mysore have also proved their mettle
when it comes to offering good facilities at competitive costs, owing to government subsidies.

Office Guide for GCCs - A ready reckoner to help you set up a Global Capability Centre in India 7
What services will help you build the Global Capability Centre that your business needs?

Based on the type of GCC you are looking to establish, your service requirements may vary.
You need to choose services that best match the functions and operations of the centre.

Some common services include:

Legal and regulatory compliance: When you set up your GCC, you have to
ensure that it complies with local laws and regulations, including employment
laws, tax laws, and environmental regulations.

Real estate: Your GCC will most likely need a physical presence at a convenient
location. This space will not only help accommodate employees but also give
them areas to collaborate and be productive.

Technology: When it comes to collaboration, communication is key. To support

communication, you need a robust technology infrastructure, including computer
systems, networking equipment, software, and more.

Human resources: Your GCC may need a strong human resources team to handle
new hires, payroll, workplace engagement, employee wellbeing and more.

Financial support: Your global capability centre may require financial support to
cover operating costs, including rent, utilities, and salaries.

Support services: To ensure your employees perform at their best, they may need
support. Services like cleaning, maintenance, security, and catering ensure that
the GCC workspace is well maintained and that the team has accessible choices.

Transportation and logistics: While the location of your GCC is paramount, you
will need transportation and logistics support. This will help make the movement
of people and goods to and from the centre far easier.

Office Guide for GCCs - A ready reckoner to help you set up a Global Capability Centre in India 8
How to set up a global capability centre?

To start a GCC in India, you need to consider many factors, from the mission of the parent organisation to the future plans of the office. Here’s a simplified plan:

Define your vision and values Get your paperwork in place Accessibility is key

As a parent company, you may have Your GCC may not be 100% parent For maximum business, your GCC
several reasons for wanting to set owned. It could be a JV, BOT not only has to be in the right city
up a new GCC. But what’s vital is (Build Operate Transfer) or a new but also the right neighborhood.
vision. Your GCC should share or be an extension of business model. But, to set up you need to complete Assess your location based on how simple it would
the parent company’s vision and you need to have a a range of formalities, including a Memorandum be to incorporate your business strategy, procure
strategy that drives that same vision. Over time, you of Understanding (MoA), Articles of association, material, implement support etc. Additionally,
also need to ensure that adequate attention is paid Directors ID (DIN) and more. The good news? In ensure the people who work within your GCC can
to keeping the culture intact. India, this is all a digital process. access it with ease.

Hire with flexibility Make it a hub of transformation Standardize your SOPs

When it comes to the high demand for You may look at starting a GCC as Be it hiring or retiring,
talent, India has the solution. But this a process hub, but you should also procurement or payment,
solution comes with a high attrition plan for its subsequent growth. standardising processes means
rate. You need an inclusive work culture that recruits Over the years, your GCC can become the epicentre a smoother transition. Employees also get
and retains the best. In addition, perks like remote of innovation. They become the ideal places to spot used to a way of working and it promotes an
working, differentiated HR practices also ensure new trends, try new business practices and ideate environment of transparency.
employee engagement & a productive environment. on new products or services.

Overall, setting up a global capability centre requires careful planning and co-ordination across different teams and departments. By following
these steps and working closely with key stakeholders, you can ensure the success of your capability centre.

Office Guide for GCCs - A ready reckoner to help you set up a Global Capability Centre in India 9
What are the challenges when setting up a global capability centre?

Even with all your plans and ideas, setting up a GCC is not as easy as you may think. You may face a few challenges, including:

1 2 3 4 5
Choosing the right Detailed planning Acquiring resources Managing teams Dealing with cultural differences
location Before you take any action, and technology remotely When you set up a GCC in a
Identifying the ideal location it is necessary to plan. But Sourcing and acquiring Co-ordinating with different location, it becomes
may be a tough ask as you it can be difficult to plan it the right resources teams that may be necessary to understand the
may not be able to find all, be it identifying the right and technology that based in a different cultural nuances of the new place.
one that caters to all your structure, processes, and can support your GCC country or region can Adapting to local customs and
requirements, like access to systems to supporting its can be tedious and become a problem from practices can also prove to be
talent, infrastructure, & cost. operations. expensive. time to time. quite challenging.

Setting up a global capability centre can be complex and challenging. With detailed planning and the right alliances, you can ensure the success of your centre and
overcome any challenge that may come your way.

Office Guide for GCCs - A ready reckoner to help you set up a Global Capability Centre in India 10
What type of office should a global capability centre lease in India?

There are multiple factors that determine the type of office a global capability centre should set up in the country. These include:

Location Infrastructure Availability of Proximity to Social Presence of Scalability

and grade-A real talent infrastructure & service
connectivity estate amenities providers

When it comes to office spaces, the brightest idea would be to lease a modern, sustainable, well-equipped office building that offers a range of features and amenities.
But when you do that, you must ensure that there is enough room to accommodate your employees, encourage collaboration, test new innovations and drive efficiency.

In short, when choosing your office, ensure its location is convenient and accessible, and the space is modern yet suitable for the organization’s needs.

Serviced Shared office Traditional space

Fully furnished Workspace shared Workspace leased

workspaces by multiple by a single tenant
managed by a facility individuals or for a year or more,
manager, offering businesses, offering offering complete
a professional and flexibility and control over their
equipped office. affordability. office environment.

Office Guide for GCCs - A ready reckoner to help you set up a Global Capability Centre in India 11
Is choosing a coworking centre a good option
for global capability centres?
Coworking spaces are shared office environments where different individuals and
organisations enjoy convenience and lower costs by using the common infrastructure
provided. The infrastructure could include a range of amenities and services, such as
high-speed internet, meeting and conference rooms, on-site support staff, and more.

Whether a coworking space would suit your GCC or not would depend on several
factors like the specific needs and requirements of the organisation, availability of
coworking spaces in the area and more.

What works

One of the key advantages of a coworking space for your GCC office is the lowered
costs in a flexible environment. This particularly comes in handy when you are
looking to set up a centre in a new location or when you are planning to expand
your business.

Coworking spaces also provide a dynamic environment to collaborate and innovate.

This becomes particularly useful if you are looking to foster a culture of creativity
within your GCC.

What doesn’t work

At a coworking space, you may not be able to customize your office space as you
would in a traditional space. This could limit the control you have over creating
workspaces for specific uses and requirements.

Additionally, coworking spaces may not be as secure as a traditional office. If your

organisation handles sensitive information or is data driven, it could prove to be a
matter of concern.

Office Guide for GCCs - A ready reckoner to help you set up a Global Capability Centre in India 12
What should the office design of a global capability centre entail?

Designing a global capability centre office requires planning and proper execution so that not only the parent organisation but also the employees flourish. Some key
factors to consider when designing a GCC office, include:

Functionality Collaboration and teamwork Brand and culture Employee wellbeing

The design of the office should A GCC office should be designed The design of the office should be The office design should consider
support the organisation’s to support collaboration and an extension of the organization’s employee wellbeing as one of
operations and enable employees teamwork among employees. brand and culture. It should its priorities. This may involve
to work efficiently. This may involve This may involve incorporating support the parent organisation’s incorporating features such as
incorporating features such as features such as open plan goals and values. This may involve natural light, plants, and ergonomic
flexible and adaptable workspace workspaces, shared meeting and incorporating elements such as the furniture and equipment, as well as
layouts, adequate lighting and conference rooms, and common organisation’s colours, logo, and providing access to amenities such
ventilation, and ergonomic areas for informal gatherings branding materials into the design as outdoor spaces, break rooms,
furniture and equipment. and interactions. of the office, and more. and healthy food options.

Office Guide for GCCs - A ready reckoner to help you set up a Global Capability Centre in India 13
How does one design office space for a global capability centre?

To set up an effective capability centre, it is imperative to create the right atmosphere. A good atmosphere enhances productivity and impacts the company’s efficiency.
For all of this, the office needs to be designed well.

A well-designed GCC brings the parent company’s vision to life while boosting the morale of the people who work there. It also creates an impression among clients &
customers that can impact business in the future.

To plan your GCC’s design, use these steps:

Visualise Invest Experience Execute Strategise

Before you begin looking Budgeting for your office While it’s great to have things Your GCC’s layout should help When it comes to designing,
for a new space, you need space is a must. Based on your go to plan, there are many you build towards a more flexibility in layout and plans
to plan and budget for it. budget, you will find it easier to circumstances that can’t be positive work environment, so is a must. While designing
Understanding how much plan the location, design type predicted. The same goes for ensure your employees have more your space, ensure you
space you require, which area and structure of your office. designing your GCC office. space to collaborate. Activity- have taken future growth
would be best to have your You may have a laundry list of based biophilic designs that into consideration. You may
office, how many people you’d requirements for your office seamlessly blend technology also need to evaluate future
need to hire etc. can give you but may not find it all in one work best in these cases. technologies and develop
a good idea on how you need place. Keep your mind open Good quality furniture, remote new strategies to keep your
to go about designing. to a change in plans. working systems and other such employees & customers happy.
innovation will also further the
company’s productivity.

Office Guide for GCCs - A ready reckoner to help you set up a Global Capability Centre in India 14
Evaluate your GCC setup with JLL

GCCs have progressed beyond being solely motivated by cost and have talent arbitrage and transformed into hubs of excellence and innovation. JLL is collaborating with
organisations to establish GCCs that are effortless to run, oversee and maintain.

Services

India entry strategy Location assessment Operational set-up Workplace management

• Business case • Location selection • Company incubation • Occupancy planning
development • Local law registrations
• Premises search & identification • Fit-out & construction
• Regulatory approvals • Lease negotiation • Talent recruitment • Integrated facility management
• Service delivery design

Strengths

Assisted 300+ GCC’s Extensive network Future-proof, data- Extensive local and Data-based market
set up and scale in of office advisors and backed strategy global knowledge of analysis for audit-
Indian markets service providers tailored to you leasing markets proof decisions

We’re happy to offer strategic partnerships that can help you set up a GCC in India.
We develop tailored offerings customised to our clients’ requirements. In case you,
your clients or acquaintances are looking to build this association or understand
the nuances of setting up a GCC in India, do get in touch with us.
jll.co.in/GCC

Office Guide for GCCs - A ready reckoner to help you set up a Global Capability Centre in India 15
Authors Research Enquiries About JLL

Anita Subramanian Dr. Samantak Das For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate
Director Chief Economist and and investment management company, has helped clients buy, build, occupy,
Content, Marketing Head Research & REIS
[email protected] [email protected] manage and invest in a variety of commercial, industrial, hotel, residential
and retail properties. A Fortune 500® company with annual revenue of $20.8
billion and operations in over 80 countries around the world, our more than
Business enquiries 108,000 employees bring the power of a global platform combined with local
expertise. Driven by our purpose to shape the future of real estate for a better
Rahul Arora Thripti George world, we help our clients, people and communities SEE A BRIGHTER WAYSM.
MD-Bengaluru, Head - Senior Director
Office Leasing Advisory, India Office Leasing Advisory, India JLL is the brand name, and a registered trademark, of Jones Lang LaSalle
[email protected] [email protected] Incorporated. For further information, visit jll.com

This report has been prepared solely for information purposes and does not necessarily purport to be a complete analysis of the topics discussed, which are inherently unpredictable. It has been based on sources we believe to be
reliable, but we have not independently verified those sources and we do not guarantee that the information in the report is accurate or complete. Any views expressed in the report reflect our judgment at this date and are subject to
change without notice. Statements that are forward-looking involve known and unknown risks and uncertainties that may cause future realities to be materially different from those implied by such forward-looking statements. Advice
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