India's corporate landscape is witnessing a significant transformation as Global Capability Centers expand their presence across major cities. These GCCs are no longer simple back-office operations but have evolved into strategic hubs for multinational companies. This shift is creating a surge in complex real estate transactions that keep the country's top law firms exceptionally busy.
From Routine Leases to Complex Mandates
What used to be standard commercial lease agreements have now become intricate legal projects. Leading law firms like Cyril Amarchand Mangaldas, Khaitan & Co, JSA Advocates & Solicitors, and Nishith Desai Associates find themselves deeply involved in these transactions. The nature of legal work has fundamentally changed, moving beyond basic paperwork to comprehensive advisory roles.
Cyril Shroff, managing partner at Cyril Amarchand Mangaldas, observes a clear increase in the number, size, and tenure of GCC-led office leasing deals. "GCCs are long-term strategic hubs for technology and global operations," Shroff explains. "Real estate commitments are larger, lease tenures are longer, and campus developments are more customized. This changes everything about legal work in this space."
Strategic Hubs Driving Growth
Global Capability Centers represent offices established by multinational corporations in India to handle various functions. These include technology development, financial operations, research activities, data analytics, and customer service management. India currently hosts more than 1,800 such centers, which generated substantial revenue of $64.6 billion in 2024.
Industry projections from Nasscom suggest this figure will cross $110 billion by 2030. These centers have transformed from basic processing units to strategic hubs focusing on engineering excellence, artificial intelligence implementation, cybersecurity measures, financial services innovation, and global operations management.
Legal Complexity Increases
Law firm involvement now begins well before any lease agreement gets signed. Legal advisers help multinational clients structure their India presence effectively. They assist with planning inter-company funding under foreign exchange regulations and tax rules. They assess state-level incentives and map labor requirements alongside regulatory compliance needs.
This comprehensive approach includes site selection processes, title verification exercises, zoning compliance checks, and negotiation of long-tenure leases or development agreements. Harsh Parikh, partner at Khaitan & Co who leads the firm's real estate practice, emphasizes understanding client motivations. "It's important to understand why a company sets up a GCC in India and what its long-term needs are," Parikh states.
Detailed Due Diligence Required
A crucial part of these legal mandates involves intensive land and regulatory due diligence. Lawyers conduct extended title searches, examine past ownership records, verify zoning permissions, and review environmental approvals. They ensure long-term security of possession through meticulous verification processes.
In built-to-suit projects, construction risk management becomes paramount. Legal frameworks establish milestone-linked delivery schedules, penalties for delays, defect liability provisions, and change-in-law protection mechanisms. Vinod Mannattil, partner and general counsel at Gloplax, highlights the importance of early legal engagement. "Engaging a trusted legal partner early helps identify risks, anticipate disputes, and support informed selection of the right real estate partner," Mannattil explains.
Changing Lease Structures
Negotiations now extend far beyond basic rent discussions and lock-in periods. Companies focus on multiple aspects including renewal rights, exit options, expansion possibilities, downsizing flexibility, rent escalation limits, delivery timelines, construction quality standards, defect liability terms, step-in rights provisions, compliance with global anti-bribery norms, ESG requirements, and faster dispute resolution mechanisms.
Vivek K. Chandy, joint managing partner at JSA Advocates & Solicitors, notes the dramatic expansion of lease documents. "Twenty-five years ago, leases were 20-25 pages. Today, they easily run into more than 100 pages, with detailed technical schedules and annexures," Chandy reveals. Construction quality receives particular attention, as building costs can vary significantly based on design choices and material specifications.
Employment Impact and Future Projections
Global Capability Centers currently employ approximately 1.35 million people across India, with Bengaluru and Hyderabad serving as the largest hubs. While these centers have emerged as major recruiters, technological advancements are beginning to influence hiring patterns. Generative AI and automation technologies may slow headcount growth in certain roles as productivity increases through artificial intelligence implementation.
According to industry reports, GCCs leased about 112 million square feet from 2020 to 2024. Projections suggest they could absorb another 180 million square feet by 2030. In 2024 alone, GCCs accounted for 44% of India's total office leasing activity. Bengaluru, Hyderabad, and Pune together contributed 70% of GCC absorption during the 2020-2024 period.
The legal complexity surrounding these transactions mirrors the evolving role of Global Capability Centers themselves. As multinational companies commit to 15-30 year tenures and build million-square-foot facilities across Indian cities, legal advisory work continues to expand in scope and significance. This trend shows no signs of slowing as India solidifies its position as the world's largest and most mature GCC hub.
