Why Flexible Workspaces Are Becoming the Default Choice for GCCs in India

India’s global capability centre (GCC) story is now in a decisive new phase. What was once a real estate decision is now a well-plotted business call for many multinational companies, and flexible, managed workspaces are increasingly becoming the epicentre of that shift.

The rapid evolution of GCCs is facilitated by co-working spaces, which behave less like properties and more like operating systems, offering plug-and-play facilities, infrastructure, compliance, talent access, innovation ecosystems, and allied services.

This changing equation was the focus of a recent discussion at AIM on ‘How GCCs are Reshaping India’s Office Market.’ It featured Harsh Binani, Co-founder of Smartworks—one of India’s largest managed workspace platforms, and Gaurav Vasu, Founder and CEO of UnearthInsight, a leading GCC intelligence and research firm.

GCC’s Real Estate Boom

According to India’s Next Commercial Real Estate Wave report, India’s commercial real estate office space market is projected to grow to $120-130 billion (economic activity) by 2030, reflecting a strong 20-22% CAGR. 

A large share of this growth is driven by GCCs, as per UnearthInsight’s projections. They are expected to drive 160–200 million square feet of new office demand by 2030, with flexible and managed workspaces capturing a significant share of this growth.

“What’s fundamentally changed is the type of GCCs coming into India,” Vasu observed. “In 2025 alone, India saw roughly 101 new GCCs, and nearly 45–50% of them were mid-sized or nano GCCs.”

These GCCs typically start small—often with 50 to 200 people—and scale in waves. For them, committing to long-term leases and heavy upfront capital expenditure doesn’t make sense.

“They want to operate asset-light, scale gradually, and focus on speed-to-market,” Vasu explained. “That’s where flex spaces give them a massive advantage—not just on cost, but on bundled services, compliance, and readiness.”

India’s Office Market Hits an Inflection Point

For Binani, the shift is part of a much larger structural transition in India’s office ecosystem.

“In 75 years, India has built roughly one billion square feet of office space,” he said. “But as India moves toward becoming a developed economy by 2047, the demand for high-quality, future-ready office space will grow exponentially.”

Flexible workspaces, once a niche concept, are now mainstream. According to a Cushman & Wakefield report, flex space in India grew to 85 million square feet in December 2025. “It’s more than 10% of total commercial real estate. That’s the fastest adoption globally,” Binani noted.

The real momentum lies at the intersection of GCC growth and managed workspaces. “Gone are the days when India was only a back-office destination,” Binani said. 

“Today’s GCCs house analytics, R&D, engineering, and core decision-making functions. Their growth is non-linear—and flex models absorb that uncertainty far better than traditional leases.”

Speed-to-market has become non-negotiable. “Within 60 to 90 days, GCCs want to move from blueprint to operational floor,” Binani explained. “Flex campuses allow that, while also offering scalability across cities and a globally consistent employee experience.”

This is where Smartworks has carved out its edge. “More than 15% of our portfolio today comes from GCCs,” he noted. “We’re seeing demand not just from large GCCs, but increasingly from nano and mid-sized centres that want to grow with us over time.”

Vasu believes this marks a structural shift in how offices are perceived. “We’re entering an era where offices behave like platforms rather than properties,” he said.

This shift has dramatically reduced setup timelines. “Pre-2019, setting up a 250–500 person GCC could take 120–180 days,” Vasu noted. “Today, that’s down to 60–65 days—including licensing, branding, and custom innovation spaces.”

Tier-2 Cities and the Hub-and-Spoke Model

The UnearthInsight report also highlighted growing interest in GCCs beyond Bengaluru, Hyderabad, and Pune. Tier-2 cities now account for nearly 9% of new GCC units, up from under 4% five years ago.

However, it’s not just about lower coworking costs.

“The real differentiator for tier-2 cities is talent density,” Binani observed. “The gap is shrinking, but tier-1 cities still offer unmatched depth in mid-to-senior leadership.”

Vasu pointed to cities like Coimbatore and Ahmedabad as early success stories. 

“What unlocked these markets was the return of mid-level talent post-COVID-19. Once leadership depth improves, GCCs follow.”

The future, he said, lies in a hub-and-spoke model. “Your primary hub may remain Bengaluru or Chennai, but tier-2 cities increasingly serve as second and third centres, for resilience, business continuity, and employee experience.”

Workspace experience has become a board-level consideration.

“Attrition in tier-2 GCCs is often under 5%, compared to the national GCC average of around 10%,” Vasu said. “Commute times, quality of life, and ecosystem maturity matter—especially for high-end product and R&D teams.”

India’s Workplace by 2030

Looking towards 2030, both leaders see India firmly positioned as a global operating nerve centre.

“The jury is out—India is no longer an experiment,” Binani declared. “It’s a permanent, long-term global operating base. Our next real estate cycle won’t be defined by how much we build, but by how fast and flexibly we deploy it.”

Vasu agreed. “By 2030, India could host over 2,500 GCCs. Work and workplace will be fully integrated—experiential, platform-driven, and deeply embedded into global value creation.”

Flex spaces may be the perfect springboard for India’s GCC boom, in turn shaping global tech strategies from Indian soil. As Binani concluded, “We’re moving toward a world where India doesn’t just support global HQs—but increasingly informs where global HQs start their day.”

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