Thiruvananthapuram Rising: The New Frontier for Global Capability Centres (GCCs) in 2025

NIRAMANDHAN October 11, 2025

Introduction

The race for global authority in knowledge, research, and technological capabilities is accelerating, and Global Capability Centres (GCCs) are at the frontline. Once concentrated in India's Tier-1 metros, the GCC landscape is shifting, with cities like Thiruvananthapuram leading a quiet revolution in offshore business excellence, cross-border R&D, and value-driven innovation. In 2025, this southern capital is attracting blue-chip corporations, scaling digital infrastructure, and fostering an ecosystem where academic brilliance and business agility converge.yourstory+2​

What Are Global Capability Centres (GCCs)?

GCCs—also known as Global In-house Centres (GICs), Offshore Development Centres (ODCs), or Captive Centres—are corporate outposts established by multinational firms in offshore locations to tap into specialized talent, drive cost savings, foster digital innovation, and support core operations across markets. GCCs in India typically manage business functions such as IT, R&D, finance, HR, analytics, engineering, and customer experience, evolving from cost-optimization hubs to command centers for strategic decision-making and global leadership.zinnov+1​

Why Thiruvananthapuram? Strategic Advantages of Kerala’s Capital

Intellectual Capital and Talent Pipeline

Thiruvananthapuram boasts an impressive talent pool, with premier institutions like the Vikram Sarabhai Space Centre (VSSC), Indian Institute of Science Education and Research (IISER), and Digital University Kerala fueling a steady supply of highly skilled professionals. The city’s 95% literacy rate and strong legacy in STEM education translate to a rich base for GCCs seeking digital, engineering, and research expertise.technopark+1​

Infrastructure and Connectivity

Thiruvananthapuram’s Technopark is one of Asia’s largest IT parks, offering world-class infrastructure and seamless access to international and domestic business networks. Recent projects like the Adani Vizhinjam Port, Coastal Highway, and Outer Area Growth Corridor are supercharging the city’s connectivity and logistical capabilities.timesofindia.indiatimes+2​

Lower Operational Costs and High Quality of Life

Compared to Tier-1 metros, Thiruvananthapuram delivers significantly lower operational costs—meaning GCCs can invest more in talent, technology, and R&D rather than inflated urban leases. The city’s low crime rates, outstanding health facilities, and sustainability credentials also cultivate an attractive work-life balance, which is crucial for employee retention.technopark+1​

  • Affordable real estate and labor costs optimize business expenditure.technopark​

  • Low crime rates and health & wellness ratings boost quality of living.technopark​

Growth Trends: The Rise of GCCs in Thiruvananthapuram & Other Tier-2 Cities

According to the latest Colliers India report and Nasscom-Zinnov studies, Thiruvananthapuram is now home to over 20 GCCs, with the broader Kerala region experiencing accelerated GCC adoption. These centers span sectors including IT, healthcare, automotive, banking, and more, reflecting a shift from generic back-office operations to high-value, sector-specific hubs.newindianexpress+4​

CityGCCs (2024)Key IndustriesTalent Pool SizeCost IndexInfrastructure Score
Thiruvananthapuram20+IT, Research, STEMLarge & specializednewindianexpress​LowHigh (Technopark)technopark​
Kochi20+IT, Maritime, BFSIMediumnewindianexpress​MediumGoodzinnov​
Coimbatore25+Manufacturing, ITMediumLowDeveloping
Bengaluru875+IT, Deep Tech, R&DMassive, diversezinnov+2​HighExcellentzinnov​
Hyderabad355+BFSI, Semicons, ITLarge, specializedzinnov+2​MediumExcellentzinnov​

  • Tier-2 cities contribute ~7% of India’s total GCCs, led by Thiruvananthapuram, Kochi, and Coimbatore.newindianexpress+2​

  • India-wide, GCC hires are expected to reach 2.2 million by 2026 and 800 new centers are forecast in Tier-2/3 locations.deloitte+1​

  • GCCs in tier-2 cities now employ around 82,000 people nationally.newindianexpress​

Technopark: The Beating Heart of Thiruvananthapuram’s GCC Industry

Technopark, established in the early 1990s, is the epicenter for GCC activity, drawing global giants and nimble startups alike. Technocity’s phase IV expansion, including flagship projects like the TCS Digital Hub and Digital Science Park, is making Thiruvananthapuram a beacon for advanced digital research and enterprise development.timesofindia.indiatimes+1​

Sustainable and Inclusive Growth: UN Recognition & City Awards

Thiruvananthapuram recently received the UN-Habitat Global Award for Sustainable Development in Cities, solidifying its reputation as a resilient, innovation-driven, and environmentally conscious capital. Its progressive policies on climate action, AQI, clean energy, and urban infrastructure are enabling GCCs to operate in a more sustainable and socially responsible manner.timesofindia.indiatimes+1​

  • City awarded for sustainable development, boosting global credibility.timesofindia.indiatimes​

  • Business environment ranked high for climate action and green energy.technopark​

Policy Frameworks & National Roadmaps Paving the Way for GCC Ascendancy

India’s National Policy on GCCs seeks to expand the country’s footprint from 1,800 to 5,000 centers by 2030, positioning Tier-2 cities like Thiruvananthapuram at the centre of capability-led growth. These policies emphasize regulatory reform, incentives, infrastructure investment, and direct/indirect tax optimization to attract foreign investors and foster enterprise innovation.deloitte​

  • National Policy targets 5,000 centers, 20–25 million jobs, $470–600 billion GDP boost by FY2030.deloitte​

  • Push for higher-value engineering, AI/ML, data science roles in GCCs.deloitte​

  • Simplified regulatory processes encourage MNC participation in tier-2 cities.deloitte​

Challenges: Bottlenecks to GCC Expansion in Tier-2 Cities

While Thiruvananthapuram’s prospects are strong, GCCs in tier-2 and tier-3 locations face hurdles:

  • Talent shortages: Only 5–15% fresh talent can be sourced locally, with most hires needing lateral recruitment from Tier-1 cities.newindianexpress​

  • Infrastructure gaps: While the city excels in tech parks, some areas lack mature support industries or direct connectivity.newindianexpress​

  • Relocation aversion: Experienced professionals often prefer Tier-1 cities for compensation and lifestyle, limiting total talent inflow.newindianexpress​

Winning Strategies: Best Practices for GCC Success in Thiruvananthapuram

According to Taggd’s GCC Report 2025, organizations thriving in new markets like Thiruvananthapuram deploy a mix of progressive talent management, deep local engagement, and agile digital transformation.taggd​

  • Invest in continuous learning and upskilling for the workforce.taggd​

  • Partner with local universities and R&D centers for research, innovation, and recruitment.timesofindia.indiatimes+1​

  • Promote hybrid and remote working models to widen talent access and retention.technopark​

  • Build sustainability into operations—energy efficiency, smart campuses, low carbon footprint.timesofindia.indiatimes+1​

Case Studies: GCC Impact in Thiruvananthapuram

Tata Consultancy Services (TCS) Digital Hub

The TCS Digital Hub, set to become one of India’s largest digital centers, will house over 20,000 professionals and catalyze the city’s shift to high-value research and product development. Strategic use of local skills, coupled with global best practices, is attracting new investment and creating an agile innovation environment.timesofindia.indiatimes​

TRASNA Semiconductor Facility

Irish firm TRASNA’s decision to expand its semiconductor operations exemplifies how Thiruvananthapuram is capturing specialized, technology-intensive segments of the global value chain. Integration with Digital Science Park further enhances sector-specific R&D.timesofindia.indiatimes​

Technopark’s Startup Ecosystem

Incubators and accelerators in Technopark help startups like Sastra Robotics and Genrobotics commercialize advanced automation, AI, and analytics solutions—making the city a touchstone for new-age GCC sectors.technopark​

Future Outlook: What’s Next for GCCs in Thiruvananthapuram

Industry forecasts and policy roadmaps predict continued momentum for GCCs in Thiruvananthapuram and other Tier-2 cities:

  • 800 new GCCs expected across India’s tier-2/3 cities by 2026.deloitte+1​

  • Massive investments in talent development, infrastructure, and global partnerships anticipated.deloitte​

  • Multi-sector adoption: Healthcare, life sciences, banking, manufacturing, and automotive will drive sector-specific growth.zinnov​

  • Increasing global R&D mandates and digital product ownership elevating India’s position in the global value chain.deloitte​

Thiruvananthapuram is set to become a reference point for high-value, sustainable, and inclusive GCC expansion in South Asia by 2030.

SEO-Optimized Takeaways

  • Thiruvananthapuram GCC hub: Ideal destination for MNCs seeking cost optimization, high-quality talent, and innovation-driven growth.yourstory+2​

  • Technopark and infrastructure: One of Asia’s top IT parks, expanding with landmark projects and attracting specialized industries.timesofindia.indiatimes​

  • Talent pool and quality of life: Outstanding education, research strengths, and urban liveability set the stage for global centers.timesofindia.indiatimes+1​

  • National GCC strategy: India’s focused policies and regional incentives are unlocking new opportunities for business and employment.deloitte​

  • Sustainable growth: UN-Habitat award and climate-resilient planning enhance the city’s appeal.technopark+1​

  • Challenges and solutions: Smart talent management and progressive organizational practices mitigate hurdles in tier-2 expansion.taggd+1​

Conclusion

Thiruvananthapuram is emerging as one of India’s most promising destinations for Global Capability Centres (GCCs), backed by world-class infrastructure, affordable operations, a rich talent pipeline, and sustainable urban governance. As multinationals and startups flock to this resilient southern city, they’re helping transform the global enterprise landscape—making Thiruvananthapuram not just a cost-efficient alternative, but a strategic, innovation-led powerhouse with the vision, expertise, and infrastructure to lead in the 2025 GCC boom.zinnov+4​

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