Pune: The Emerging Epicenter for Global Capability Centres in India

As India solidifies its position as a global powerhouse for Global Capability Centres (GCCs), the city of Pune is rapidly emerging as a key player. Once known primarily for its educational institutions and proximity to the automotive industry, Pune is now becoming a magnet for global corporations looking to tap into India’s vast talent pool and cost-effective real estate market.

Pune’s Strategic Position in the GCC Landscape

In recent years, India has witnessed an exponential growth in the establishment of GCCs. From 2015 to 2023, the number of GCCs in India has surged from approximately 1,000 to 1,580, a testament to the country's growing appeal. Pune has been at the forefront of this growth, securing the second-highest share in GCC office leasing activities from 2022 to the first half of 2024.

Pune's rise can be attributed to several key factors:

Competitive Real Estate Costs: Pune offers more affordable office spaces compared to other major metropolitan areas, making it an attractive option for global companies.
Diverse Talent Pool:. Home to top educational institutions, Pune boasts a rich talent pool in engineering, technology, and management.
Strategic Location: Its proximity to major automotive and engineering hubs adds to Pune’s appeal, especially for companies in these sectors.
Quality of Life: With its cosmopolitan culture, excellent connectivity, and favorable business climate, Pune offers a high quality of life, making it an attractive destination for both businesses and professionals.

Recent Developments in Pune

Pune's growing stature in the GCC landscape is highlighted by several key developments:

IPG Mediabrands: This division of the Interpublic Group recently launched its largest Global Capability Centre in Pune. Currently housing 1,000 employees, the center is set to expand to accommodate 3,000 over the next two years. This center will play a pivotal role in media activation, product development, and engineering services for over 500 global clients.
Cummins India: The inauguration of a new IT Global Competency Centre in Pune marks another milestone in the city’s growth. This state-of-the-art facility will serve as the central hub for Cummins' global IT operations, focusing on innovation, digital transformation, and delivering IT solutions across the company's worldwide operations.

GCCs Powering India’s Job Market

The impact of GCCs on India's job market cannot be overstated. According to a recent report, GCCs in India have seen a significant boost in hiring, with the number of employees growing from 1 million in FY19 to 1.6 million in FY23. This growth has been accompanied by healthy salary increases, making GCCs an attractive career option for many professionals. Moreover, 60% of the total GCC staff in India are employed by US-based companies, underscoring the importance of India in global corporate strategies. Pune, with its thriving ecosystem, is a key beneficiary of this trend.

The Road Ahead for Pune

As global corporations continue to expand their GCC operations in India, Pune is well-positioned to lead the next wave of growth. The city's blend of cost-effective real estate, a skilled workforce, and strategic location make it an ideal destination for companies looking to establish or expand their GCCs. At Amar Builders, we are proud to be part of Pune’s dynamic growth story, committed to delivering world-class infrastructure and real estate solutions that support this wave of innovation and expansion. Pune isn’t just following the trend; it’s setting the pace for the future of Global Capability Centres in India.