In the latest report from Knight Frank, India has been cited amongst the leading offshoring locations in the world. Indian Offshoring market has evolved itself as a significant occupier in India’s office space with leasing over 46% of office space in 2023, with GCCs being the biggest offshore occupier. India’s offshoring market witnessed an overall leasing volume of 27.3 mn sq ft (Million Square Feet) in calendar year 2023 (cumulative transaction volumes from GCC: 20.8 mn sq ft and Third-party IT services: 6.5 mn sq ft), making it a significant increase of 26% from the previous year.
In recent years, India's office real estate market has seen a positive trend from GCCs, seeking growth opportunities in the global offshoring industry. The GCC landscape in India has grown significantly by fostering more than 1,580 centres across the nation in 2023. The GCC’s proposition in the Indian leasing transactions has increased from 25% in 2022 to 35% in 2023.
Though Information Technology remains the biggest GCC occupier in the country, the growth was significantly propelled by GCCs from the industrial sector, particularly in the semiconductor, automobile, and pharmaceutical industries. These GCCs secured large spaces to capitalise on unique growth opportunities and align with the momentum of these industries globally.
Global companies increasingly seek cost-effective solutions to minimise expenses, and a growing number are now looking towards offshoring functions as a strategic avenue. Offshoring has emerged as a critical driver propelling office demand in four APAC Hubs – India, Philippines, Malaysia and Vietnam.
Indian IT Service Exports is expected to expand from USD 185.5 billion in 2023 to USD 230.5 billion in 2025. The current pace of additional commercial assets supply will expand Indian office market stock to an estimated one billion square feet by 2025.
