New Delhi, July 10 -- The Indian government is actively encouraging Global Capability Centres (GCCs) to expand beyond traditional tech hubs like Bengaluru, Hyderabad, and Chennai.

However, industry leaders remain cautious about shifting operations to Tier II and III cities due to ongoing challenges such as limited infrastructure, smaller talent pools, and an underdeveloped startup ecosystem, according to business standard.

To make these smaller cities viable for GCC expansion, three key components are essential: a strong presence of IT services firms, a robust startup environment, and the continued growth of existing GCCs.

Cities like Ahmedabad, Indore, Mysuru, Coimbatore, Mohali, and Bhubaneswar have seen some progress, with major IT ...