S Krishnan, Secretary, MeitY
The Union government is actively promoting the development of Global Capability Centres (GCCs) beyond traditional tier-I cities, particularly in tier-II and tier-III locations. It is encouraging various State governments to consider models like Karnataka’s ‘Beyond Bengaluru’ and Tamil Nadu’s ‘neo Tidal Park’ initiatives, which aim to expand the industry beyond established hubs.
Addressing the Nasscom-GCC Summit and Awards 2025 here on Wednesday, MeitY Secretary S Krishnan said that expanding to tier-II and tier-III cities offers significant advantages for GCCs, including lower costs for rentals and housing, as well as better talent retention.
“Attrition is a concern in more established centres, and loyalty is higher in smaller locations, which appeals to companies looking to retain talent for longer periods,” he said.
He, however, clarified that the strategy was not solely focused on tier-II and tier-III cities. “The National Framework for GCCs aims for a balanced approach. While smaller cities offer cost and retention benefits, certain types of talent might only be found in established centres. The National Framework is intended to be broader, applicable to all GCCs regardless of their location,” he said.
“Tier-I cities must remain strong for expansion into smaller towns. The framework allows different States to adapt and develop their own policies to attract GCCs, drawing lessons from successful examples like Bengaluru, Hyderabad, and Pune,” he added.
The framework also guides Central government ministries on supporting GCC growth, recognising that ease of doing business involves coordination among State, Central, and local bodies.
Published on April 23, 2025
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