From Sambhar to Silicon: How South India is driving GCC trends in 2025
South India is no longer just known for its iconic idlis, dosas, and filter coffee. Today, it’s gaining global recognition for something far more transformative-powering the next wave of Global Capability Centers (GCCs). Whether it’s Bengaluru’s innovation nerve centers, Hyderabad’s AI labs, or Chennai’s cloud hubs, South Indian GCCs are leading a quiet revolution in reshaping the future of global enterprise.
Once synonymous with back-end delivery, these centers now fuel cutting-edge R&D, data science, cybersecurity, and digital transformation across industries-from healthcare to fintech. Let’s explore how South Indian business ecosystems are dictating GCC trends in South India in 2025 and beyond.
Why South India?
Several factors contribute to South India’s dominance in GCC expansion:
- Large talent pool with strong digital skills
- World-class engineering and management institutes
- Mature infrastructure with special economic zones (SEZs)
- Favorable state-level policies in Karnataka, Telangana, and Tamil Nadu
- Lower operational costs compared to Western markets
South India Leading in GCC Workforce expansion in 2025
According to a March 2025 report by ANAROCK, South Indian cities accounted for 64% of India’s GCC office rentals in Q1 2025 alone.
GCC Office Leasing Share – Q1 2025
| City | GCC Leasing (Million Sq Ft) | Share of Total GCC Leasing in India |
|---|---|---|
| Bengaluru | 2.90 | 33% |
| Chennai | 0.80 | 15% |
| Hyderabad | 0.64 | 18% |
| South India Total | 5.34 | 64% |
| Rest of India | 3.01 | 36% |
| Total India | 8.35 | 100% |
Talent Boom & Skill Premiums
With over 2.4 million jobs forecast in GCCs by 2030, South India is expected to contribute nearly 50% of net new hires. Reports reveal:
- AI/ML engineers in Hyderabad and Bengaluru command salaries of ₹22–45 LPA
- Data scientists earn 40–60% premiums over traditional software roles
- GenAI & Cloud FinOps skills saw a 32% YoY demand increase
Case Studies: GCC Giants in South India
Carl Zeiss (Bengaluru)
The German optics and healthcare tech firm set up its GCC in Bengaluru to focus on AI-powered diagnostic tools and cloud-based platforms. With plans to double its India workforce to 5,000 employees by 2028, it’s now investing in MedTech R&D hubs in South India.
Guidewire Software (Bengaluru)
The California-based insurance SaaS leader is scaling its India Engineering and Consulting GCC. Their 1,000+ headcount target by 2028 focuses on platform automation, claims intelligence, and product innovation.
Evernorth Health Services (Hyderabad)
Evernorth’s Hyderabad GCC is now known to be its global AI and health analytics engine which is powering 40+ digital health solutions. With the hiring increasing in the cloud, AI/ML, cybersecurity and bioinformatics the GCC is at the heart of their personalized healthcare delivery.
Startup Synergy & Government Push
Telangana and Karnataka governments are actively promoting GCC growth through incentives, CoEs, and startup collaboration:
| Program/Initiative | Impact |
|---|---|
| Genome Valley & MedTech Park | 100+ life science startups & biotech GCCs |
| STPI Hyderabad & FinTech Valley | 1,400+ incubated startups (44% women-led) |
| Karnataka GCC Policy (2025) | 500 new GCCs, 3.5L jobs by 2029 |
Tier-2 Cities Are Rising
It’s not just Bengaluru and Hyderabad anymore. But cities such as Coimbatore, Kochi and Vizag are also catching the attention due to thier lower operational costs and quality of the tech talent from the local institutions.Companies like Infosys and Bosch are already experimenting with hybrid GCC models in these cities.
Why It Matters: Redefining GCC Trends in South India
- More than delivery: South Indian GCCs are driving IP, products, and strategy-not just execution
- Innovation-rich zones: Investment in AI, health tech, cybersecurity, and fintech is peaking
- Talent magnet: High-end, high-skill job creation is cementing South India as the go-to GCC hub
- Balanced expansion: Tier-2 cities offer an affordable, sustainable growth path.
Final Take
From sambhar to servers, South India is crafting a whole new identity-a global powerhouse for GCC excellence. The combination of strong government support, innovation-ready talent, deep domain capabilities, and cultural flexibility makes South Indian business ecosystems the engine behind 2025’s most powerful GCC trends.
As global companies continue their talent hunt and digital expansion, the future of GCC sourcing is undeniably South Indian.
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