100+ Japanese companies expand GCC operations in India, report finds

More than 100 Japanese companies have established or expanded Global Capability Centres (GCCs) in India, with operations increasingly focused on artificial intelligence (AI), engineering, product development and cybersecurity, according to a report by real estate services firm Cushman & Wakefield.

The expansion reflects a shift in how Japanese businesses use their Indian operations. Rather than concentrating primarily on back-office support and cost reduction, companies are developing capabilities intended to support global technology, innovation and business transformation.

The report describes Japanese GCCs as increasingly integrated into global operations and decision-making, with responsibilities spanning digital product development, AI, automation, advanced analytics, cybersecurity and engineering solutions.

“This is no longer a story of outsourcing,” said Arpita Srivastava, Managing Director, APAC Tenant Representation & GCC Advisory at Cushman & Wakefield.

“Japanese companies are not coming to India simply to reduce costs. They are building strategic capability centres that create business value, drive innovation and support global transformation initiatives,” she said.

Technology mandates reshape the role of GCCs

The changing focus of Japanese GCCs reflects growing demand for specialised digital and engineering skills. According to Cushman & Wakefield, companies are looking to use their Indian operations for work that contributes more directly to product development and wider business objectives.

The report identifies several areas gaining importance:

• Artificial intelligence and automation: Supporting technology-led operations and business transformation.

• Digital product development: Building capabilities for products and services used across global businesses.

• Advanced analytics: Applying analytical capabilities to business and technology requirements.

• Cybersecurity: Developing expertise to support digital operations.

• Engineering: Expanding specialised technical work within global organisations.

The report does not provide a company-wise breakdown of these activities, but it identifies the broader movement towards higher-value technology functions.

India’s STEM talent base strengthens its appeal

India’s supply of science, technology, engineering and mathematics (STEM) graduates is a key factor behind the expansion, according to the report. Japanese companies are also drawing on the country’s technology clusters, office infrastructure and established investment ecosystem.

Cushman & Wakefield estimates that India produces 2.5 million to 2.8 million STEM graduates annually. The availability of specialised talent supports companies seeking to develop engineering and digital capabilities within their global operating models.

The report also points to the infrastructure supporting GCC development, including office campuses and technology parks. These requirements connect the expansion of Japanese capability centres with demand for commercial real estate and technology-oriented workplaces.

Bengaluru, Hyderabad and Pune remain important destinations

Bengaluru, Hyderabad and Pune continue to be key locations for Japanese GCCs, according to Cushman & Wakefield. Companies are also exploring emerging talent markets to access specialised skills and accommodate future expansion.

The geographic spread of these operations could influence where companies seek office space and technical talent. The report notes that Japanese capital is contributing to office campuses, technology parks and real estate platforms supporting India’s innovation ecosystem.

However, it does not specify how many new centres are planned in each city or quantify the expected additional office space associated with Japanese GCC expansion.

AI and engineering set the direction for future growth

Cushman & Wakefield expects Japanese companies to play a larger role in India’s GCC ecosystem over the next decade, with Indian operations becoming a more important source of innovation for Japanese enterprises.

Srivastava said companies were increasingly focused on how quickly they could scale strategic capabilities in India, rather than simply deciding whether to establish such centres.

The next phase of expansion is expected to centre on AI, engineering, innovation and closer collaboration between Indian teams and Japanese businesses, according to the report. The pace and scale of this shift will depend on companies’ ability to access specialised talent and integrate Indian capabilities into their global operations.