100+ Japanese Companies Expand GCCs in India

More than 100 Japanese companies have established or expanded their Global Capability Centres (GCCs) in Bengaluru, Hyderabad and Pune, focusing on artificial intelligence, engineering, digital innovation and product development.

According to a report by Cushman & Wakefield, these centres are evolving beyond traditional back-office operations into strategic hubs supporting global business priorities.

Japanese Companies Expand India's GCC Footprint

Japanese companies are increasingly using their Indian GCCs to strengthen digital capabilities, address talent shortages and accelerate enterprise-wide innovation. Their activities span engineering, pharmaceuticals, automotive, financial services and technology-led functions.

Initially established to provide operational support and improve cost efficiencies, these centres are taking on broader responsibilities.

Their functions now include developing digital products, advancing artificial intelligence and automation, strengthening cybersecurity, supporting advanced analytics and delivering engineering solutions.

The report identifies growing demand for digital, engineering and technology talent among Japanese enterprises as a key factor behind this expansion.

India's estimated annual output of 2.5 million to 2.8 million graduates, alongside its established technology clusters and office infrastructure, also supports this growth.

Bengaluru, Hyderabad and Pune Attract Japanese GCCs

Bengaluru has attracted Japanese companies including Toyo Engineering–MODEC and Takeda Pharma. Their presence reflects activity across engineering and pharmaceutical operations.

Hyderabad has attracted companies such as Dai-ichi Life, ABeam Consulting and Olympus Corporation for specialised, technology-oriented operations.

The city is among the locations where Japanese businesses are developing capabilities beyond routine operational support.

Pune has also recorded activity from Japanese banking institutions.

Its established automotive and engineering ecosystem continues to support demand from Japanese companies seeking specialised talent and technology capabilities.

GCCs Shift Towards AI and Digital Innovation

The expansion reflects a change in how Japanese companies approach their Indian operations. Rather than concentrating only on cost reduction, organisations are building centres that contribute to product development, innovation and global transformation initiatives.

Arpita Srivastava, Managing Director of APAC Tenant Representation and GCC Advisory, said Japanese companies were building strategic capability centres to create business value, drive innovation and support global transformation.

She also highlighted India's skilled engineering and digital workforce, operational maturity and scalability as factors supporting the development of innovation-focused centres.

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Implications for India's Commercial Office Market

The expansion of GCC operations across Bengaluru, Hyderabad and Pune is relevant to the commercial real estate sector because these businesses require office infrastructure to support specialised teams and technology-led functions.

The report identifies established office infrastructure and technology clusters as part of India's business environment supporting Japanese occupiers.

However, the source does not provide specific figures for office leasing volumes, total space occupied or future commercial property demand attributable to Japanese GCCs. It also does not quantify the investment planned by individual companies.

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Key Takeaways

• More than 100 Japanese companies have established or expanded GCCs in Bengaluru, Hyderabad and Pune.
• Key focus areas include AI, engineering, cybersecurity, product development and advanced analytics.
• India produces an estimated 2.5 million to 2.8 million graduates annually, according to the report.
• Japanese GCCs are increasingly positioned as strategic innovation centres rather than solely operational support units.

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