From Cost Arbitrage to Intelligence: Why Kolkata Is Emerging in India’s Next GCC Chapter

Main Article
Fri, Jan 30, 07:37 AM IST

For over two decades, India’s Global Capability Centres (GCCs) were built on a simple promise: scale, efficiency and cost advantage. That promise has now fundamentally changed.


According to the EY–ASSOCHAM report, Eastern India’s Role in the Next GCC Wave (January 2026), GCCs across India are undergoing a decisive shift — from cost engines to intelligence-led enterprise hubs. Artificial intelligence, data-driven decision-making, and outcome ownership are no longer future ambitions; they are becoming the operating norm.


Within this transformation, Kolkata and Eastern India are no longer peripheral to the GCC conversation. They are increasingly being evaluated as part of serious, portfolio-driven global location strategies.


At Kolkata Calling, we see this moment not as a sudden breakthrough, but as a long-overdue structural realignment.


 

India’s GCC Landscape Is Being Redefined


India today hosts over 1,760 GCCs, employing close to two million professionals, according to the EY–ASSOCHAM report, with India accounting for nearly half of all GCCs globally. What is more important than scale, however, is the change in mandate.

  • 92% of GCC leaders now say their centres drive transformation beyond cost arbitrage
  • Over 80% are actively scaling Generative AI
  • 58% are already investing in agentic AI, with a further pipeline of adoption planned


These numbers mark a clear inflection point: GCCs are evolving into Intelligent GCCs — AI-native, data-driven, and governed for enterprise-level impact.


This shift aligns with broader national data. The Economic Survey of India (2024–25) highlights that India accounts for 28% of the global STEM workforce, reinforcing why global enterprises continue to deepen — not reduce — their India presence.


But the geography of this growth is changing.


 

Why Global Enterprises Are Looking Beyond Tier-1 Cities


While Bengaluru, Hyderabad, Pune, Chennai and NCR remain dominant, the EY–ASSOCHAM report confirms a clear geographic diversification trend. Enterprises are increasingly exploring cities that offer:

  • Cost resilience amid rising Tier-1 wage inflation
  • Lower attrition and stronger workforce loyalty
  • Distributed risk and business continuity
  • Access to deep but under-leveraged talent pools

Emerging hubs such as Ahmedabad, Jaipur and Indore feature prominently in this shift. So does Kolkata.


This is not speculative interest. It is being driven by second- and third-centre expansions by organizations that already run mature GCCs elsewhere in India.


That distinction matters.


 

Kolkata’s GCC Story Is Quiet — but Substantive


The report identifies 20+ multinational GCCs already operating out of Kolkata, including global names such as HSBC, Ericsson, and BT Group.


These are not experimental offshore setups. Most are part of deliberate, portfolio-based location strategies, where Kolkata complements Tier-1 hubs rather than replaces them.


Several structural advantages stand out:

Cost–Talent Equation That Still Works


Operating costs in Kolkata remain materially lower than Tier-1 cities, at a time when overall GCC cost per FTE in India has risen from ₹23.3 lakh (2022) to ₹27.5 lakh (2025), as per EY’s Cost and Operations Benchmarking data.


Lower real estate costs, stable wage inflation and comparatively lower attrition allow organizations to invest more in capability-building and AI adoption, rather than absorbing rising overheads.


Capability Mix Is Shifting Up the Value Chain


Contrary to outdated perceptions, Kolkata-based GCCs are increasingly focused on:

  • Advanced analytics and data engineering
  • AI and machine learning support
  • Network and operations automation
  • Product engineering and QA
  • Enterprise IT and cybersecurity

 

The report notes a growing presence of R&D-adjacent and intelligence-led work, indicating that Kolkata is participating in the same shift toward outcome ownership seen across India’s leading GCCs.


 

Talent: Kolkata’s Most Understated Advantage


Kolkata’s talent story has long been discussed — but rarely articulated in enterprise terms.


The region draws from institutions such as IIT Kharagpur, IIM Calcutta, Indian Statistical Institute, and Jadavpur University, alongside a wide network of engineering, science and commerce colleges.


What the EY–ASSOCHAM report highlights, however, is a gap — not in talent quality, but in structured signalling. The pathway from these institutions into GCC careers remains under-defined compared to Tier-1 ecosystems.


This is also an opportunity.


Targeted industry–academia programs in analytics, AI, product engineering and risk — combined with internships and GCC-ready certifications — could convert latent talent into immediately deployable capability at scale.


 

Real Estate and Infrastructure Are Quietly Aligning


Commercial real estate plays a decisive role in GCC location decisions. According to industry estimates referenced in the report (including Cushman & Wakefield data), GCCs now occupy nearly a quarter of India’s Grade A office stock.


In Kolkata, IT hubs such as Sector V and New Town are increasingly aligned with global GCC requirements: large floor plates, long-term lease viability, LEED-certified buildings and hybrid-ready designs.


This matters because GCCs are no longer just office tenants — they are long-horizon institutional occupiers.


 

What Kolkata Still Needs to Get Right


The EY–ASSOCHAM report is clear-eyed about what comes next. For Kolkata to move from “credible alternative” to “preferred capability hub,” a few enablers are critical:

  • A clearer GCC landing playbook with predictable setup timelines
  • Stronger single-window facilitation at the state level
  • Better visibility of talent availability maps
  • Anchor GCC wins that create signalling effects


Equally important is narrative alignment. Kolkata does not need to position itself as the “cheapest” option. The future belongs to intelligence-led, resilient, and scalable GCC models — and that is where the city’s opportunity truly lies.


 

The Bigger Picture: Why This Moment Matters


The final insight from the EY–ASSOCHAM report is perhaps the most important:

the next decade of GCC growth will be defined less by where centres operate, and more by how intelligently they are designed and governed.


For India, this cements its position as the world’s most strategic GCC destination.

For Kolkata, it opens a long-term window — to participate meaningfully in shaping global enterprise capability, rather than merely supporting it.

At Kolkata Calling, we see this not as a trend to be celebrated prematurely, but as a shift to be understood, prepared for, and executed well.

Because the next chapter of India’s GCC story will not be written only in the usual places.

 

And Kolkata, quietly and steadily, is positioning itself to be part of it.