Synopsis
Tier-2 cities now make up 30-32% of all new job postings, according to Sachin Alug, CEO of talent solutions firm NLB Services. “Hiring demand for tech and GCC roles in cities like Mangalore, Ahmedabad, and Nagpur has picked up noticeably, driven by the rise of nano-GCCs,” he said.While GCCs’ move into smaller cities such as Coimbatore, Indore and Lucknow is well documented, more centres are coming up with many states pushing policies and building infrastructure to attract such centres.
Tier-2 cities now make up 30-32% of all new job postings, according to Sachin Alug, CEO of talent solutions firm NLB Services. “Hiring demand for tech and GCC roles in cities like Mangalore, Ahmedabad, and Nagpur has picked up noticeably, driven by the rise of nano-GCCs,” he said.
Nano-GCCs are smaller, high-impact centres of 20 to 100 professionals focused on deep R&D and AI-led work rather than large-scale back-office operations, with demand coming from BFSI, fintech and AI-led automation firms.
“Tier-2 and Tier-3 cities are still a minority of new GCC activity, but the share is rising,” said Vikram Ahuja, co-founder of ANSR, a GCC service provider.
Demand for such locations has risen to nearly 35% of new evaluations in FY25, up from 14.9% of actual GCC additions in FY24. However, 85-88% of new centres are still concentrated in metros.
Commercial real estate costs in smaller cities are up to 50% lower, and living expenses are 25-35% cheaper, according to ANSR.
Also, attrition rate is lower at 10-14% against 16-20% in tier-1 cities.
“Salaries in tier-2 cities are typically 10-25% lower than Bengaluru, but lower living costs and improved quality of life offset this gap,” said Neeti Sharma, CEO of TeamLease Digital.
This is prompting professionals to return to their hometowns, while fresh graduates are increasingly open to starting careers outside metros, she said.
Policy support is also playing a key role. Madhya Pradesh was the first state to implement a dedicated GCC policy in 2025.
Netlink and Qualfon have collaborated to set up a GCC in Bhopal, focused on IT support, digital transformation and business intelligence.
Aurangabad, now officially Chhatrapati Sambhajinagar, is being developed as an emerging GCC destination under Maharashtra’s GCC policy for 2025-30.
Karnataka’s Beyond Bengaluru initiative, led by the Karnataka Digital Economy Mission (KDEM) in 2021, has added over 6,000 tech jobs across Tier-2 cities between FY22 and FY26, with the state targeting 1,000 GCCs and 350,000 jobs by 2029.
Companies setting up outside Bengaluru can claim 50% rental reimbursement up to Rs 2 crore and a 20% investment subsidy up to Rs 2 crore for eligible centres, according to ANSR. “Incentives are usually an accelerator, not the sole reason to choose a city,” Ahuja said.
Tier-2 cities are also showing early signs of scale. EG Denmark grew its India operations in Mangalore from about 20 employees in 2019 to around 850 by 2025, while Bose Corporation has also set up a centre there.
The shift remains gradual.
“It is still early-stage, structured expansion rather than large-scale redistribution,” Sharma said. “Most companies are setting up smaller teams or micro-GCCs, typically ranging from 50 to 120 employees.”
