More than 100 Japanese companies have established or expanded their Global Capability Centres (GCCs) across Bengaluru, Hyderabad and Pune, with a growing focus on artificial intelligence, engineering, digital innovation, product development, cybersecurity and advanced analytics, rather than traditional back-office operations, according to a report by Cushman & Wakefield.
Initially set up to provide operational support and improve cost efficiencies, GCCs are evolving into strategic capability hubs that help Japanese companies accelerate digital transformation, address talent shortages and drive enterprise-wide innovation.
Japanese GCCs are serving as centres of excellence responsible for developing digital products, advancing AI and automation initiatives, strengthening cybersecurity capabilities, supporting advanced analytics and engineering solutions, and contributing directly to global business priorities, the report noted.
Three key structural trends are driving this evolution: rising demand among Japanese enterprises for digital, engineering and technology talent; India's deep STEM talent pool, which produces an estimated 2.5-2.8 million graduates annually; and a mature business environment supported by world-class office infrastructure, established technology clusters and a robust investment ecosystem, the report said.
Japanese occupier activity across India’s major cities has been growing steadily in recent years, spanning engineering, pharmaceuticals, automotive, financial services and technology-led functions.
{{/usCountry}}Japanese occupier activity across India’s major cities has been growing steadily in recent years, spanning engineering, pharmaceuticals, automotive, financial services and technology-led functions.
{{/usCountry}}In Bengaluru, Toyo Engineering–MODEC and Takeda Pharma are among the notable names, while Hyderabad has attracted companies such as Dai-ichi Life, ABeam Consulting and Olympus Corporation for specialised, technology-oriented operations. Pune has also witnessed activity from Japanese banking institutions, alongside continued demand supported by its established automotive and engineering ecosystem.
Also Read: Gurugram’s senior living market gains ground as high-net-worth retirees and NRIs drive demand
“This is no longer a story of outsourcing,” said Arpita Srivastava, Managing Director, APAC Tenant Representation & GCC Advisory. “Japanese companies are not coming to India simply to reduce costs. They are building strategic capability centres that create business value, drive innovation and support global transformation initiatives. India offers access to highly skilled engineering and digital talent, while providing the scale, infrastructure and ecosystem needed to support long-term growth.”
“What we are seeing is a fundamental redefinition of the GCC model,” she said. “The question for many Japanese organisations is no longer whether to establish a GCC in India, but how quickly they can scale their strategic capabilities. India offers a unique combination of talent, operational maturity and scalability that enables companies to build centres focused on innovation rather than just execution.”
Future outlook
Over the next decade, Japanese companies are expected to play an even greater role in the evolution of India's GCC ecosystem, while India will become an increasingly important source of innovation for Japanese enterprises, the report said.