It’s becoming increasingly difficult for many companies to find the talent they need to innovate and grow. Unemployment is close to historic lows in many western economies, with structural issues such as ageing populations and sluggish productivity growth exacerbating the problem.

Rapid technological change is also reshaping the skills landscape. In a recent survey conducted by Savills and CoreNet Global, 63% of corporate occupiers reported a decline in talent availability over the past three years.

So how can businesses respond to these challenges? Global capability centres (GCCs) – in-house operations of multinational companies, often found in lower-cost locations – offer a strategic response. In the survey, 49% of respondents report they are currently planning GCC operations.

By tapping into global talent pools, often at significantly lower cost, companies can access the skills they need. The GCC model is increasingly seen not just as a cost-saving measure but as a way to build a business’s resilience and future-proof its operations.

How are corporates tapping into global talent pools?

Source: Savills Research and CoreNet Global survey

India leads the way in GCCs

India stands out as the global leader for GCCs, with more than 1,700 centres employing 1.9 million professionals. Most are part of US-headquartered firms, followed by European companies.

The country’s success in attracting GCCs is underpinned by its deep STEM talent pool and widespread proficiency in English. The country produces more than 2.2 million graduates annually. Government support has also played a pivotal role. It has established Special Economic Zones (SEZs) that offer tax benefits and streamlined regulatory compliance, while individual states have introduced their own GCC-friendly policies.

India’s GCCs are attractive employers, typically offering higher salaries than local firms and strong career development pathways. They tend to cluster in cities aligned with their sector focus, such as tech in Bengaluru and financial services in Mumbai.

Bengaluru is the largest centre of GCCs in India, accounting for 38% of all office take-up by GCCs in India since 2020, followed by Hyderabad, Pune, Chennai, Delhi-NCR and Mumbai. Collectively, these six cities have seen office take-up by GCCs of 130 million sq ft in the past five years.

Distribution of Indian GCC office space take-up

Source: Savills Research

Tier II and III cities are increasingly attracting GCCs thanks to lower costs, targeted incentives and previously untapped talent pools. For example, Franklin Templeton has established a GCC in Visakhapatnam, leveraging the city’s connectivity and growing IT ecosystem to focus on operational resilience. Kraft Heinz chose Ahmedabad due to its supportive state policies and emerging start-up ecosystems, while Synopsys set up a research-focused GCC in Bhubaneswar, specialising in electronics and semiconductor design.

The sector in India is evolving quickly. Arvind Nandan, Managing Director, Research and Consulting, Savills India, says: “Green infrastructure, hybrid work models and strategic location choices will characterise the next wave of GCC expansion. In India, GCC real estate is no longer just treated as a cost, but as an investment to help businesses attract talent and innovate.”

Other Asian markets such as the Philippines, Malaysia, Vietnam and China are also host to GCCs. In Europe, GCCs are focused in Eastern Europe, led by Poland, where they can be found primarily in Warsaw, Kraków, Wrocław, and Tricity. Elsewhere in the region, the Czech Republic, Hungary, Romania and the Baltics are key destinations, while Portugal is an important location to the west. Regulatory alignment is an advantage when serving fellow EU-based corporations.

In the Americas, Mexico is a strategic choice for US firms because of the similar time zone, alongside Argentina, Chile, Colombia and Brazil. South Africa and Egypt are notable African markets, offering cost savings and proximity to European time zones.

Lower salary and real estate costs are a key driver

Cost remains a compelling driver for the adoption of GCCs. Salary costs for entry-level STEM and customer support roles in GCC markets are some 73% lower than in cities such as New York and London.

India offers the lowest average annual salaries – around $9,400 for a STEM graduate and $4,000 for a customer support agent – representing an 86% saving compared with London and New York. However, salaries vary widely within India, from an average of $14,000 in tech-heavy Bengaluru to $4,500 in Gurugram.

Salaries in GCC markets

Source: Savills Research

Real estate costs follow a similar pattern. Office costs in GCC markets (including rent, service charges and taxes) average $25 per sq ft – 75% lower than costs in major global cities. India is again the most cost-efficient location, with average GCC office costs of $16 per sq ft, 85% lower than average prime space in London and New York.

Despite the focus on cost savings, GCCs seek high-quality real estate in well-connected CBD locations or business parks. It’s a trend that’s increasingly seen in Poland’s capital, Warsaw, as Wioleta Wojtczak, Head of Research, Savills Poland, explains. “Historically, GCCs often chose non-central locations, primarily due to lower costs. As demand and development activity have increasingly shifted toward central Warsaw, many GCCs have followed suit – establishing offices in prime, centrally located buildings to provide high-quality workplaces that help attract and retain top talent.”

In India, most GCCs are found in business parks, often within SEZs. These locations offer good access to infrastructure (critical in India’s congested urban environments) and plentiful talent, as well as mid-market homes to house them.

Sustainability is increasingly a differentiator. New GCC campuses in India are being built to LEED Platinum standards, while European centres often require 100% renewable energy supply, aligning with the requirements of purpose-driven employers who want to attract the best talent.

GCC office costs, USD per sq ft per annum

Source: Savills Research. Note: costs are representative of the most common location for GCCs in each market, not the market average

The future: GCCs become more strategic

The nature and activities of GCCs are also changing: they are no longer just about back-office support. They are becoming strategic hubs for innovation, driving business growth through high-value functions such as R&D, supply chain management, analytics and AI.

This move up the value chain is helping to insulate them from some of the more disruptive impacts of AI. At the same time, generative AI is transforming GCC capabilities, leading to the creation of dedicated AI labs that enhance business efficiency by automating processes, help drive innovation and facilitate decision-making.

Even in talent-rich markets, competition for skilled professionals in fields such as AI and quantum computing is intense. GCCs are responding by partnering with universities, offering extracurricular programmes and nurturing talent early, reflecting a broader move towards skill-based hiring and long-term talent retention strategies. They typically mirror the wider corporate culture of their parent organisations, promoting career development and learning opportunities – a key factor in attracting and retaining talent in competitive markets.

Changing regulatory frameworks, especially around data privacy and AI, are another growing consideration. So too are political alignment and stability in a fragmented global landscape.

But with western markets facing ongoing talent shortages, shrinking workforces and tighter migration controls, GCCs will remain a vital strategic tool for accessing the skills that corporations need to thrive.