Chennai: The Go-To City for Global Capability Centres in India
Chennai is rapidly emerging as a premier hub for Global Capability Centres (GCCs) in India, challenging the long-standing dominance of cities like Bengaluru and Hyderabad. This transformation is fueled by a combination of strategic advantages, government support, and a rich talent pool, making Chennai an attractive destination for multinational corporations.
Chennai’s GCC Growth Surge
In the fiscal year 2024, Chennai witnessed a remarkable addition of 95,000 employees to its GCC workforce, surpassing Bengaluru’s growth of 68,000 and Hyderabad’s 75,000. This surge brought the total GCC headcount in Chennai to over 213,000, reflecting the city’s increasing significance in the global business landscape. The presence of 259 established GCCs employing over 150,000 skilled professionals further reinforces the city’s pivotal role in this growth.
Strategic Advantages
1. Talent Pool
Chennai boasts a robust educational infrastructure with numerous top-ranked institutions in STEM fields. Thanks to its strong educational institutions in engineering and IT, and expanding industries in technology and manufacturing, it boasts of a steady stream of extremely skilled talent. A lower cost of living compared to other major cities creates ample job opportunities for professionals seeking career growth.
2. Government Incentives
The Tamil Nadu government has implemented attractive policies aimed at boosting GCC establishment. Recent initiatives include payroll subsidies for high-paying job creation and exemptions from electricity taxes and stamp duties for new GCCs. Such incentives are designed to enhance Chennai’s competitiveness relative to other cities.
3. Infrastructure and Connectivity
Chennai’s strategic location along the east coast provides excellent connectivity through ports, airports, and road networks. This logistical advantage is critical for companies looking to streamline their operations globally. In 2023, Chennai emerged as the third-largest city in India for office space absorption, with 10 million sq. ft. leased across various sectors.
Sectoral Strengths
Chennai is not just an IT hub; it also excels in sectors like automotive manufacturing—often called the “Detroit of India.” The state accounts for 13% of India’s total installed capacity in this sector. Major global players have established their GCCs here to harness local expertise while benefiting from cost-effective operations.
How Arihant is Readying Chennai for the GCC Wave
Arihant is transforming Chennai’s corporate landscape with our Equitas and Rohini projects. The Equitas project involves developing a 1.7 lakh square feet corporate office for Equitas Small Finance Bank, valued at ₹300 crore, enhancing the city’s business environment.
The Rohini project focuses on creating thoughtful corporate spaces that cater to modern business needs. These initiatives reflect our commitment to elevating urban development and providing innovative, state-of-the-art workspaces in Chennai.
We recognise that Chennai is on the cusp of significant growth, underscoring the critical role of strategic urban development in creating an ideal environment for diverse communities. With proactive measures to enhance infrastructure and sustainability, Chennai is set to accommodate its expanding population while prioritising inclusivity, positioning itself as a vibrant metropolis that meets the diverse needs of its residents.
Future Outlook
Industry experts predict that Chennai will continue to attract GCCs due to its unique blend of talent availability, supportive government policies, and strong industrial ecosystems. The recent emphasis on digital capabilities—particularly in data analytics and AI—has made Chennai a hotspot for tech-driven GCCs. As companies increasingly seek to innovate and optimise their operations, Chennai’s role as a GCC hub is set to expand further.
This rise is not merely a trend but a significant shift in India’s corporate landscape.
With its compelling mix of talent, infrastructure, and government support, Chennai is poised to become a leading destination for global firms looking to establish their operational bases in India. As more companies recognise the city’s potential, Chennai will likely solidify its position as a formidable competitor to traditional tech hubs like Bengaluru and Hyderabad.
