New Delhi, April 18 -- Global Capability Centres (GCCs) are vital to multinational firms, with India hosting over 1,950 centres, set to exceed 2,500 soon. As India cements its status as a global GCC hub, the question isn't where the next centre will open-it's where it should.

For years, financial services GCCs have concentrated in tier-1 cities like Bangalore, Hyderabad and Pune. But with rising real estate costs, intense talent competition and urban fatigue setting in, firms are eyeing a new frontier: tier-2 and tier-3 cities.

Also Read: Tech Mahindra banks on growth from new consulting and GCC units

The recently announced National Framework for GCCs in the Union Budget 2025-26 is a timely nudge in this direction, offering 16 measures...