More than 100 Japanese companies have established or expanded their Global Capability Centres (GCCs) across Bengaluru, Hyderabad and Pune, reflecting India’s growing role in supporting global technology, engineering and innovation operations. According to a report by Cushman & Wakefield, these companies are increasingly focusing on artificial intelligence (AI), digital innovation, product development, cybersecurity and advanced analytics rather than limiting their Indian operations to traditional back-office functions.
The expansion highlights the changing role of India in the global business strategies of Japanese enterprises. GCCs, which were initially established to provide operational support and improve cost efficiency, are increasingly becoming strategic centres for technology development, engineering expertise and business transformation.
GCCs Shift Towards Technology and Innovation
Japanese companies are using their Indian GCCs to develop digital products, implement AI and automation initiatives, strengthen cybersecurity capabilities and support advanced analytics. These centres are also contributing to engineering solutions and other activities linked directly to the global business priorities of their parent organisations.
The shift reflects the growing demand for specialised technology and engineering capabilities as companies seek to address talent shortages and accelerate digital transformation.
According to Cushman & Wakefield, three structural trends are supporting this growth. These include rising demand among Japanese enterprises for digital, engineering and technology talent, India’s large pool of science, technology, engineering and mathematics (STEM) graduates, and the availability of established office infrastructure and technology clusters.
India produces an estimated 2.5-2.8 million STEM graduates annually, providing companies with access to a substantial talent base. The country’s established business environment and technology infrastructure further support the development and expansion of GCC operations.
Bengaluru, Hyderabad and Pune Attract Japanese Firms
Bengaluru, Hyderabad and Pune have emerged as important locations for Japanese companies establishing specialised operations in India. Their existing technology and engineering capabilities, office infrastructure and talent availability support the development of GCCs across several industries.
In Bengaluru, companies such as Toyo Engineering–MODEC and Takeda Pharma are among the notable Japanese occupiers. Their presence reflects the city’s role in supporting engineering and pharmaceutical-related operations.
Hyderabad has attracted companies including Dai-ichi Life, ABeam Consulting and Olympus Corporation for specialised, technology-oriented activities. The city’s established technology sector provides an environment for businesses seeking expertise in digital functions and specialised services.
Pune has also witnessed activity from Japanese banking institutions. Its established automotive and engineering base continues to support demand from companies seeking technical talent and industry-specific capabilities.
Japanese occupier activity across India’s major cities has also extended to financial services, automotive operations and technology-led functions, indicating that GCC expansion is not confined to a single industry.
India Becomes a Strategic Business Destination
Arpita Srivastava, Managing Director of APAC Tenant Representation and GCC Advisory, Cushman & Wakefield, said Japanese companies are increasingly establishing strategic capability centres that create business value, support innovation and contribute to global transformation initiatives.
She noted that India’s engineering and digital talent, combined with its infrastructure and operational scale, allows companies to develop centres focused on innovation rather than only execution.
The changing approach also indicates that Japanese organisations are increasingly considering how quickly they can expand strategic capabilities in India, rather than simply deciding whether to establish a GCC.
Outlook for India’s GCC Market
Over the next decade, Japanese companies are expected to play a larger role in the development of India’s GCC sector, according to the report. India is also expected to become a more important source of innovation for Japanese enterprises.
The expansion could support demand for office space in established technology markets, particularly as companies recruit specialised talent and increase their investment in digital and engineering operations.
For India’s commercial real estate sector, the shift towards innovation-led GCCs highlights the importance of locations offering skilled professionals, established technology networks and suitable office infrastructure. Bengaluru, Hyderabad and Pune are positioned to remain important destinations as Japanese companies expand their operations and integrate Indian centres more closely with their global business strategies.
