Andhra Pradesh has constituted a comprehensive Advisory Council to position itself as a preferred destination for Global Capability Centres (GCCs), tapping into the growing trend of multinational corporations establishing operations in India's tier-2 cities.
With Bengaluru and Hyderabad having already tapped into a lot of GCCs in the last few years, Andhra Pradesh has now joined the race.
The newly formed council brings together CXOs (Chief Experience Officers) from global corporations, industry bodies such as NASSCOM, business councils, consulting leaders, real estate developers, and leading academic institutions. This collaborative approach aims to create a robust GCC ecosystem that can generate employment opportunities and contribute to the State's circular economy.
GCCs represent strategic business units of multinational corporations that handle critical functions, including research and development, IT services, finance, procurement, and customer operations. Unlike traditional outsourcing arrangements, GCCs are wholly owned subsidiaries of their parent companies, ensuring greater innovation, operational efficiency, and seamless integration with global operations.
The advisory council will develop a strategic five-year roadmap focusing on several key areas, such as creating a future-ready workforce ecosystem, establishing research and development capabilities, building next-generation facilities and connectivity, streamlining policies and compliance processes, fostering international collaborations and brand positioning and designing competitive fiscal packages.
According to research by workplace solutions firm Vestian, India houses nearly 1,700 GCCs across tier-1 and tier-2 cities, accounting for roughly 53 per cent of all GCCs worldwide. The top six Indian cities, Bengaluru, Hyderabad, Chennai, National Capital Region (NCR), Mumbai, and Pune, currently host 94 pc of the country's GCCs. However, the remaining centres are distributed across emerging locations, including Kolkata, Kochi, Ahmedabad, Chandigarh, Coimbatore, Vadodara, Nashik, Thiruvananthapuram, Jodhpur, Warangal, Visakhapatnam, and other tier-2 cities.
While tier-1 cities continue to dominate GCC presence, momentum is gradually shifting towards tier-2 locations. This transition has been further supported by the Union Budget 2025, which proposed a national framework to facilitate GCC expansion into merging tier-2 destinations. This geographic diversification is expected to drive substantial growth in GCC establishments nationwide.
Vestian Research projected that India's total GCC count will exceed 2,100 by the fiscal year 2028, representing a compound annual growth rate of 8%. This translates to approximately 150 new centres being established annually.
To support this initiative, the government has approved a dedicated secretariat comprising two to three officers from the IT&C Department or AP Economic Development Board (APEDB). This team will organise quarterly council meetings and prepare briefing materials, maintain comprehensive records and facilitate member communication, monitor and implement council recommendations and execute national and international roadshow programmes over the next three months.
The IT-ITeS sector leads India's GCC landscape, representing approximately 49 pc of all centres nationwide. The Banking, Financial Services, and Insurance (BFSI) sector follows with a 17 pc share. Healthcare and Life Sciences, Engineering and Manufacturing, Consulting Services, and Telecom and Media collectively contribute around 19 pc to India's overall GCC ecosystem.
"With the council in place, Andhra Pradesh is expected to unlock a new era of GCC-driven growth, creating thousands of high-value jobs and strengthening its position in the global technology landscape," said Bhaskar Kantamaneni, Secretary of Andhra Pradesh’s IT department.
"The government has approved the constitution of this 360-degree composition GCC Advisory Council to accelerate ecosystem growth and position the State as a preferred destination for GCC investments. The council will meet quarterly to provide policy implementation and investment facilitation recommendations," he added.
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