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GCCs enter tier-2 cities on cost agility, talent diversification

Tier-2 cities such as Kochi, Coimbatore, Indore and Jaipur are gaining traction, especially for domain-specific talent in Cloud support and Medtech, among others.

Uma Kannan

BENGALURU: Global Capability Centres (GCCs) are now looking beyond metros for operations-led and mid-tier engineering roles as they are sourcing specialized talent from tier-2 cities.

With increasing focus on cost agility and talent diversifications, tier-2 cities such as Kochi, Coimbatore, Indore and Jaipur are gaining traction, especially for domain-specific talent in Cloud support and Medtech, among others.

Technology staffing firm Quess IT Staffing, in its India's GCC Tech Talent Landscape 2024 Report, reveals that Kochi is experiencing strong demand in professional services, healthcare operations and cybersecurity.

Within the GCC sector, certain tier-2 cities are turning into specialised talent hubs. Coimbatore is building strength in automotive, industrial technology and cloud operations. It is being considered for an engineering centre of excellence and IoT-led factory.

Jaipur is also showing momentum in BFSI tech, credit risk and e-commerce-led development.

Compensation is also shifting rapidly due to talent scarcity, and hiring in emerging GCC locations - Hyderabad, Pune, Ahmedabad and Coimbatore-  is creating regional salary variations.

Roles with AI, cybersecurity, cloud security and FinOps expertise are witnessing 20-35% y-o-y compensation growth due to demand outpacing supply.

While AI & Data Science Engineers with 4-8 years’ experience earn up to Rs 48 lakh per annum in Bengaluru, they earn only up to Rs 34 LPA in tier-2 cities. The report reveals that AI Compliance & Risk Ops Engineer, Zero Trust Security Engineers, AI Observability Engineer and Site Reliability Engineer (SRE) are not available in tier-2 cities.

"India’s GCCs are no longer just delivery hubs—they are innovation powerhouses. The pivot toward AI-first, cloud-native, and cyber-resilient ecosystems marks a strategic inflection point for the industry. We foresee talent investments focusing on capability depth, building capacity, digital-first mindsets, and tier-2 city expansion," said Kapil Joshi, CEO, Quess IT Staffing.

Also, the report emphasizes a growing demand-supply gap in emerging tech roles, alongside rising compensation premiums for niche skills.

Currently, the country has over 1,800 GCCs, with over 120 new centres launched in 2024. It is expected that by 2030, the GCC market will grow to $99–105 billion, with a workforce exceeding 2.4 million professionals.

Bengaluru leads strategic hiring with 61% in Defence & Aerospace and 35% in BFSI. Hyderabad is the preferred hub for Healthcare & Pharma GCCs (41%) and emerging AI talent.

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