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Tier 2 cities have taken the lead in India’s GCC story

Byadmin

May 15, 2026


Global enterprises are discovering that India’s next chapter isn’t being written in Bengaluru or Hyderabad. It’s being written in Ahmedabad, Indore, and Jaipur, and DevX is building that story from the ground up.

DevX supports this shift with managed workspaces and operational strategies tailored to these emerging markets. (DevX)
DevX supports this shift with managed workspaces and operational strategies tailored to these emerging markets. (DevX)

The conversation that once began and ended with Bengaluru or Hyderabad now opens with a different set of cities, Ahmedabad, Indore, Jaipur, and Vadodara. These aren’t backup options or cost-cutting fallbacks. They are, increasingly, the first choice for global capability centres (GCCs) that have learned a lesson from a decade of metro operations: brilliant talent is only an asset if it stays.

With over 30 managed workspace centers across India, DevX has observed these changes. Through its DevX GCC vertical, the company has been enabling some of the organisations to plant roots in Tier 2 markets — not as an experiment, but as a strategy.

The attrition tax

In India’s major metros, GCC attrition has hovered between 20 and 25 percent annually. For companies investing months in onboarding, compliance training, and domain-specific knowledge transfer, it’s a direct hit to productivity and institutional memory. Tier 2 cities tell a different story, with attrition rates running 8 to 12 percentage points lower, driven by fewer competing employers and a workforce that actively prioritises stability.

“Tier 2 cities aren’t just cheaper to operate in; they’re fundamentally better for talent continuity. We’ve seen companies lose trained professionals within 12–18 months in metros. In cities like Ahmedabad or Indore, the same profile stays three to four years. That’s not a marginal difference; it’s the difference between a team that builds institutional depth and one that perpetually restarts.”

— Umesh Uttamchandani, Managing Director, DevX

Why people stay and what it means for GCCs

The economics of Tier 2 living are quite compelling. Professionals in these cities commute less, live in larger homes, and aren’t surrendering 60 percent of their take-home salary to rent. The result is a workforce that is more present, in attention, in loyalty, and in long-term commitment. For GCCs handling complex, multi-year workstreams in engineering, data science, and product development, this is the foundation on which capability is actually built.

DevX GCC has structured its entire proposition around this. The offering goes beyond flexible seating and meeting rooms; it delivers end-to-end operational readiness, from enterprise-grade IT infrastructure and compliance frameworks to scalable workforce support. The goal is to help global firms focus on building teams, not logistics.

“The value a GCC extracts from AI tools is directly proportional to how long its people have been embedded in the business. A three-year veteran knows which data to trust, which stakeholders to loop in, and what was tried two years ago. That contextual intelligence cannot be prompted into existence; it must be earned through tenure. Keeping that talent is no longer just an HR priority; it is the foundation of every AI strategy worth having.”

— Yash Shah, Director, DevX

Spaces that signal intent

The physical environment where someone spends eight hours is not a passive backdrop; it is an active signal about how much an organisation values the people inside it. DevX Design & Build has helped in creating workspaces that move beyond conventional fit outs into purposefully engineered environments.

From acoustic zoning and biophilic design to collaboration pods and wellness-integrated floor plans, the modern DevX workspace is designed so that people want to come back tomorrow.

“When we design a GCC space, we’re not just fitting out an office; we’re building the daily experience of an entire workforce. Great design removes friction; signals respect and creates the kind of environment where deep work is possible. In Tier 2 cities especially, where talent is choosing employers on the full quality of their work life, the workspace becomes one of the most powerful retention tools a company has.”

— Parth Shah, Chairman, DevX

The convergence that changes everything

The Tier 2 shift and the people-continuity imperative are not parallel trends. They are, in fact, the same trend viewed from two different angles. Companies are moving to Tier 2 cities because talent stays longer. Talent stays longer because the quality of life is real; henceforth the workspaces are designed with intent, and the operational infrastructure, delivered by operators.

India now hosts over 1,700 GCCs contributing more than $64 billion in annual revenue. As this ecosystem matures, competitive advantage will not belong to companies with the most sophisticated AI stack. It will belong to companies that figure out how to keep their best people, long enough, in the right environment, in the right city, for compounding to happen.

DevX is developing this ecosystem through its managed centers, GCC partnerships, and workspace designs..

Note to the Reader: This article is part of Hindustan Times’ promotional consumer connect initiative and is independently created by the brand. Hindustan Times assumes no editorial responsibility for the content.

By admin