Global corporations absorb 46% of total office space in 2023

Bengaluru, 17 April: Close to half of office space in India was leased by offshoring industry in 2023, showing the rising interest among global companies to set up offices in the country.

In a report, real estate consultancy firm Knight Frank said that Indian offshoring market has emerged as a significant occupier of office space with over 46 per cent of office space getting absorbed by global firms in 2023. According to the report, GCCs (Global Capability Centres) or technology captives were the biggest offshore occupier during last year. The GCC landscape in India has grown significantly with more than 1,580 centres across the nation. Last year, The GCC’s proposition in the Indian leasing transactions has increased from 25 per cent in 2022 to 35 per cent in 2023.

India’s offshoring market witnessed an overall leasing volume of 27.3 million sq ft in 2023.

When global companies set up office or shift part of their operations to India, this process is called offshoring. In recent years, the country has emerged as a favourite destination for global companies for offshoring owing to the ample availability of talent and cost advantage.

Viral Desai, Senior Executive Director (Occupier Strategy & Solutions, Industrial & Logistics,Capital Markets and Retail Agency) of Knight Frank India, said, “India has been a traditional leader in the outsourcing market. By aligning itself with evolving needs of global businesses, India is now an established centre of excellence. The growing share of Global Capability Centres (GCC) in total leases will remain supportive of office market demand in 2024.

Further it is projected that GCCs will potentially drive the office market in the next decade.

By 2030, there will be an estimated 2,400 GCCs across India as it emerges as a global technology and services hub. Assuming a similar pace of growth, the number of GCCs in India may scale up to 2880 by 2034.”