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Seven States Chasing 1.2M GCC Jobs, But Talent Supply Lags

Seven States Are Chasing 1.2 Million GCC Jobs. Talent Supply Hasn’t Caught Up

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Summary

India’s GCC race is expanding beyond established hubs, with seven states targeting 1.2 million new GCC jobs by 2031 through policy incentives and location-led initiatives. Yet talent remains concentrated in Tier-I cities, creating a gap between where states want GCCs to grow and where specialized skills are available. For companies setting up their first GCC, incentives and faster approvals need to be assessed alongside actual hiring data for the roles they plan to build. The newsletter looks at how talent availability can shape GCC location decisions, including a case where a hybrid model proved more practical than an all-Tier-II setup.
A US technology firm signed on for a Tier-II Indian city last year, drawn by capital subsidies and a fast-track approval window. Eight months later, its hiring plan for platform engineers was running six months behind. The incentive package had delivered exactly what it promised, the speed of entry. However, it mentioned nothing about whether the local talent pool for that skill set existed. That gap is actually the key that’s shaping the next GCC cycle of India. In India, dedicated GCC policies have been launched by seven states, which target creating 1.2 million new jobs by 2031. However, the existing GCCs are highly concentrated, with just six established cities accounting for 94% of the existing GCC talent. For a business setting up a global capability center for the first time, incentives can shorten timelines and curtail costs. But they cannot create specialized talent overnight.

The race for incentives - What’s on the table

States like Karnataka, Haryana, Maharashtra, Uttar Pradesh, Rajasthan, Gujarat, and Madhya Pradesh have formalized GCC policies. While employee-specific incentives have been introduced in select tech hubs, Telangana and Delhi have policy frameworks in place, Kerala has a draft policy, and Punjab is positioning Mohali as the next GCC hub in North India.
State Target centres Target jobs Strategic push
Karnataka 500 350,000 Beyond Bengaluru
Maharashtra 200+ 400,000 New hub locations
Haryana 100+ 30,000+ Beyond Gurugram
Seven states combined 1,380+ 1.2 million by 2031 National spread

Where jobs are available vs. where talent is available

The demand side looks equally aggressive, with 52% of GCCs planning to grow their headcount this financial year, translating to roughly 150,000 new roles by 2027. But hiring data tells a narrower story. Tier-I cities still account for 88-90% of GCC hiring, with Tier-II locations contributing just 10-12%. A new policy announcement can change the jobs on offer in a state, but it doesn’t change the employees who are available to hire there yet.

Is Faster Approval the Same as a Ready Talent Market?

When a location offers faster approval, it may appear attractive to GCCs. But it discloses little information on how quickly a capable team can be built from that particular location. Before finalizing the decision, it’s important to look beyond the incentive package for employees. What matters more is checking whether the local pool of talent can execute the roles planned for the GCC. Companies are looking beyond established hubs and assessing where they can build the right capabilities at scale.

This is where a closer look at hiring data can change the decision. For example, an IT company evaluating a Tier-II location for its first GCC found the tax package competitive enough. However, when the team benchmarked local hiring data for specialized data engineering roles, the numbers pointed to a different approach. The client chose a hybrid model, with core product functions based in an established hub and support functions built out in the lower-cost city. The specialized roles were filled considerably faster than they would have been under the original all-Tier-II plan.

For first-time entrants, the risk is not necessarily in the entity structure or the details of the subsidy. It is assuming that an attractive incentive package also means there is a mature local talent market for the specific skills the GCC needs.

Why Choose IMC

Setting up a global capability center in India today requires looking beyond the incentive data and understanding what a location can actually staff, not just what it can subsidize. At IMC, we evaluate GCC locations against the functions to be established, the talent required, applicable state incentives and the costs of operating there, before recommending an entity and location structure and structure their decisions related to entity and location around the mandate they intend to run. This way, companies can avoid over-committing to markets that are not yet talent-ready. Right from site selection, our approach focuses on building long-term capability, beyond the announcement on the day of the launch.

Before you commit to the incentive pitch of a state, ask one question. Does this location have the people, or just the paperwork? Reach out to the GCC advisory team at IMC to pressure-test your site selection against current talent data.

Disclaimer: This article is for general informational purposes only and does not constitute legal, tax, or regulatory advice. State-level GCC incentives and figures should be independently verified before final decision-making.

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