Karnataka to hire consultant to attract GCCs amid competition from neighbouring states

GCC

• Karnataka to hire consultant to attract more GCCs and tech firms
• Consultant to find gaps, design strategies, and engage firms
• Focus on emerging tech, incentives, and global outreach programs

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Karnataka is planning to hire a consultant to help attract more Global Capability Centres (GCCs), IT and IT-enabled services firms, and data centres to the state, amid intensifying competition from cities such as Hyderabad, Chennai and Pune.

Karnataka Innovation and Technology Society (KITS), under state’s Department of Electronics, IT and Biotechnology, has recently invited a tender to select a consultancy firm that will design strategies to strengthen the state’s position as a global technology hub and draw investments in emerging technologies.

Also, read: Maharashtra sets out plan to outpace southern states in GCC investments

IT department officials told Moneycontrol that the consultant will work with the government to identify gaps in the state’s offerings, develop targeted strategies, and directly engage with multinational companies considering India for technology investments.

“Karnataka continues to be the largest GCC hub in India, but other cities are aggressively competing for new investments. The idea is to sharpen our value proposition and proactively reach out to companies planning new centres,” a senior official said.

Identifying gaps and improving competitiveness

According to the request for proposal issued by KITS, consultant will conduct consultations with companies and industry stakeholders to understand the factors that influence their decisions on where to set up GCCs, technology centres or data centres.

Also, read: India’s $280-bn IT industry safe from potential US tariffs, says Karnataka IT Minister

Based on these discussions and global benchmarks, consultant will identify structural gaps in areas such as talent availability, infrastructure, real estate costs and ease of doing business.

“The consultant will recommend strategic interventions and incentives required to attract new GCCs, IT/ITeS companies and data centres to Karnataka,” the document said.

The firm will also design financial models to estimate the budgetary implications of proposed incentives and help the government prioritise interventions that can be implemented in phases.

Also, read: Karnataka wants to be home to 15% of global GCCs by 2030, eyes 1 million jobs

Global outreach to multinational companies

A major part of the assignment will involve direct outreach to multinational corporations that are considering establishing or expanding technology centres in India.

The consultant will identify high-potential sectors and prepare a pipeline of target companies, particularly global firms that do not currently have GCCs in Karnataka.

Officials said the firm will assist the government in organising roadshows and outreach programmes in major global markets, including the United States, Europe, Japan and South Korea.

“The aim is to create a strong pipeline of companies and convert them into investment proposals or memorandums of understanding for setting up GCCs, IT facilities and data centres in the state,” the official said.

The consultant will also support meetings with industry associations and global technology companies to promote Karnataka’s policy framework and incentive packages.

Also, read: Karnataka's draft GCC policy: 3.5 lakh jobs by 2029, special package for Beyond Bengaluru clusters

Focus on emerging technologies

Apart from attracting investments, the consultant will also be tasked with identifying emerging technologies that could drive the next phase of growth in the state’s technology sector.

These may include areas such as artificial intelligence, quantum technologies, blockchain and space technology.

The consultant will also prepare sectoral studies covering market size, growth prospects, investment trends and infrastructure requirements, and recommend action plans to build ecosystems around these technologies in Karnataka.

Industry consultations and workshops with technology firms will also be conducted to refine these sectoral strategies.

Also, read: Karnataka's GCC policy to focus on employee well-being, work-life balance and Beyond Bengaluru clusters

Supporting policy implementation

The consultant’s mandate will extend to supporting the implementation of key technology policies introduced by the state government.

This includes operationalising incentive mechanisms under the Karnataka GCC Policy 2024–2029 and the upcoming IT Policy 2025-2030, digitising application processes for incentives, and drafting operational guidelines.

The firm will also assist in updating the state’s data centre policy and coordinating with industry stakeholders to disseminate policy guidelines.

Competition for GCC investments

Karnataka remains the country’s largest hub for Global Capability Centres, with Bengaluru accounting for around 30 percent of India’s GCC market and hosting more than a third of the country’s GCC talent pool.

However, officials said the state is facing growing competition from other cities that are aggressively courting multinational companies with incentives and infrastructure.

“While Bengaluru continues to attract the largest share of GCC investments, cities like Hyderabad and Chennai are actively positioning themselves as alternatives. The government wants to ensure Karnataka stays ahead in this race,” the official said.

India currently hosts around 1,750 GCCs, and industry estimates suggest the number could cross 2,400 by the end of the decade as more multinational companies set up global technology and research centres in the country.

Also, read: Infra, talent, tax breaks: What Karnataka, Telangana, Tamil Nadu want from Centre’s Tier-II GCC policy