Global Capability Centers (GCCs) have traditionally thrived in established locations like Bangalore, Manila, and Krakow. However, as competition for talent grows and businesses seek new ways to optimize costs, emerging cities are gaining traction as attractive GCC destinations. Companies are expanding their footprint to new regions, driven by a combination of talent availability, cost-effectiveness, and supportive government policies. This article explores the top emerging GCC locations around the world, highlighting what makes each city or region appealing for global companies.
Why Companies Are Expanding to New GCC Locations
As global companies look to diversify their talent pools and reduce operational costs, they’re increasingly considering emerging GCC locations. Several factors are driving this shift:
- Talent Availability: Emerging regions often have a large pool of highly skilled talent in fields like technology, data science, and customer support.
- Cost Efficiency: Operational and labor costs in these locations are generally lower than in traditional GCC hubs, offering a cost-effective way to scale operations.
- Government Incentives: Many emerging locations provide tax benefits, relaxed regulations, and other incentives to attract foreign investments.
- Market Access: Expanding into emerging regions can provide companies with a strategic location to serve nearby markets, improving response times and customer satisfaction.
As companies diversify their GCC locations, these emerging cities are poised to become key players in the global GCC landscape.
Top Emerging GCC Locations for 2025
1. Cairo, Egypt
Why It’s Attractive: Cairo has rapidly become a hub for IT and business process outsourcing (BPO) due to its large pool of skilled, English-speaking graduates and affordable labor costs. With strong support from the Egyptian government, which offers incentives for foreign investment, Cairo is now home to a growing number of GCCs focused on tech development, customer support, and financial services.
- Key Industries: IT, finance, and customer support
- Advantages: Competitive labor costs, government incentives, proximity to Europe and the Middle East
2. Ho Chi Minh City, Vietnam
Why It’s Attractive: Vietnam’s tech-savvy workforce, combined with low operational costs, makes Ho Chi Minh City a popular destination for GCCs specializing in software development, data analytics, and digital marketing. The city’s rapid infrastructure development and investment in tech education further boost its appeal.
- Key Industries: Technology, digital marketing, and analytics
- Advantages: Skilled workforce, strong infrastructure, competitive costs
3. Guadalajara, Mexico
Why It’s Attractive: Known as the “Silicon Valley of Mexico,” Guadalajara has emerged as a key tech hub in Latin America. Its proximity to the U.S., cultural similarities, and skilled talent pool make it ideal for companies looking to establish nearshore GCCs for technology and customer support.
- Key Industries: Technology, engineering, and customer support
- Advantages: Proximity to the U.S., cultural compatibility, government incentives
4. Bucharest, Romania
Why It’s Attractive: With a growing reputation for IT and engineering talent, Bucharest is becoming a go-to location for European companies setting up GCCs. Romania offers a favorable business environment with competitive costs, strong infrastructure, and access to highly skilled professionals in software development and cybersecurity.
- Key Industries: IT, cybersecurity, and engineering
- Advantages: High-quality talent, EU membership, competitive operational costs
5. Nairobi, Kenya
Why It’s Attractive: Nairobi is quickly gaining recognition as an African tech and innovation hub. The city’s growing talent pool, affordable labor costs, and English-speaking workforce make it a favorable location for companies interested in expanding GCCs focused on technology, customer support, and BPO.
- Key Industries: Technology, BPO, and customer service
- Advantages: Low labor costs, English-speaking talent, supportive government policies
6. Krakow, Poland
Why It’s Attractive: Although already an established GCC hub, Krakow continues to grow due to its advanced tech infrastructure and high-caliber workforce. With Poland’s membership in the European Union, companies benefit from regulatory alignment with Western Europe, making it attractive for finance, IT, and business analytics.
- Key Industries: Finance, IT, and business analytics
- Advantages: EU alignment, highly educated workforce, strategic location within Europe
7. Bogota, Colombia
Why It’s Attractive: Colombia’s capital is a growing center for technology, customer service, and finance-focused GCCs. The Colombian government offers various incentives to attract foreign investment, and Bogota’s location offers easy access to North American and Latin American markets.
- Key Industries: Technology, finance, and customer support
- Advantages: Geographic proximity to North America, government incentives, bilingual workforce
8. Kuala Lumpur, Malaysia
Why It’s Attractive: Kuala Lumpur has emerged as a prime location for GCCs in Southeast Asia due to its well-established infrastructure, government support, and multilingual talent pool. The city is known for strengths in finance, IT, and logistics, with several global companies setting up centers here.
- Key Industries: Finance, IT, and logistics
- Advantages: Strong infrastructure, multilingual workforce, supportive government policies
9. Tallinn, Estonia
Why It’s Attractive: Known for its digital innovation and startup ecosystem, Tallinn is becoming a top choice for tech-focused GCCs in Europe. Estonia’s e-government initiatives, digital infrastructure, and a highly skilled workforce attract companies interested in digital transformation and tech R&D.
- Key Industries: Technology, R&D, and digital services
- Advantages: Advanced digital infrastructure, skilled tech workforce, favorable tax policies
10. Casablanca, Morocco
Why It’s Attractive: Casablanca has emerged as a leading GCC location in North Africa, especially for French-speaking companies. With a young, educated workforce and a strategic location that offers access to both Europe and Africa, Casablanca is attractive for customer service, IT, and BPO centers.
- Key Industries: Customer service, BPO, and IT
- Advantages: Competitive costs, bilingual talent (French and English), strategic location
Factors Making These Locations Attractive for GCCs
The appeal of these emerging locations lies in several key factors that companies consider when choosing new sites for GCCs:
- Cost Efficiency: Many emerging locations offer significantly lower labor and operational costs than traditional GCC hubs, making them attractive for companies seeking budget-friendly expansion options.
- Access to Skilled Talent: Countries are increasingly investing in education, particularly in tech and engineering, to meet global demand, resulting in a more specialized workforce.
- Government Incentives: To attract foreign investment, many governments provide tax breaks, simplified regulations, and incentives specifically for tech and BPO sectors.
- Time Zone Compatibility: Certain emerging locations offer time zone advantages that allow for extended service hours, making them ideal for customer support and continuous operations.
The Future of Emerging GCC Locations
As businesses continue to grow their global operations, it’s likely that more cities will join the list of top emerging GCC destinations. Regions such as Latin America, Southeast Asia, and Eastern Europe are particularly well-positioned due to the availability of skilled talent, favorable business environments, and lower operational costs.
However, with growth comes competition. Established GCC hubs will likely innovate further to maintain their appeal, while new locations will need to invest continuously in talent development, infrastructure, and technology. The future of emerging GCC locations will depend on their ability to adapt to changing global demands and offer specialized services that meet the evolving needs of international companies.
Conclusion
Expanding into emerging GCC locations offers companies a strategic advantage in today’s competitive market. These new destinations provide an ideal balance of cost efficiency, access to talent, and proximity to key markets. As the GCC landscape evolves, businesses will increasingly look beyond traditional hubs to tap into the potential of these emerging regions. By doing so, they can access specialized skills, diversify their global footprint, and enhance their resilience in a rapidly changing world.
For organizations considering expansion, now is the time to explore these emerging GCC locations and capitalize on the unique advantages each one offers.
