More than 100 Japanese companies have established or expanded their Global Capability Centres (GCCs) in India, shifting operations from traditional back-office support to artificial intelligence, engineering, product development, and cybersecurity, according to a report by real estate services firm Cushman & Wakefield.
Japanese GCCs are increasingly functioning as centres of excellence for digital product development, AI and automation, advanced analytics, cybersecurity and engineering solutions, and are becoming more closely integrated into global business operations and decision-making, the report said.
“This is no longer a story of outsourcing. 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,” said Arpita Srivastava, Managing Director, APAC Tenant Representation & GCC Advisory at Cushman & Wakefield.
The report cited India’s talent base of an estimated 2.5 million to 2.8 million STEM graduates annually, along with the country’s office infrastructure, technology clusters and investment ecosystem, as key factors supporting the expansion. Bengaluru, Hyderabad and Pune remain the key destinations for Japanese GCCs, while companies are increasingly exploring emerging talent markets to access specialised skills.
Japanese capital is also contributing to office campuses, technology parks and real estate platforms that support India’s innovation ecosystem, positioning Japan as a key real estate investor alongside its role as a GCC occupier.
“Over the next decade, we expect Japanese companies 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,” Srivastava said.
Japan’s domestic labour shortage and demographic pressures have been widely cited by Japanese CXOs as the leading driver for investing in India-based GCCs, a trend corroborated by earlier industry surveys. The next phase of growth is expected to be driven by AI, engineering, innovation and deeper collaboration between Indian operations and Japanese parent businesses.
