GCCs Drive IT Expansion as TCS Leases Large Office Space in Chennai
16 MAY 2025 / 01 min read
“GCCs continue to be the flavour”, as India’s largest IT services company, Tata Consultancy Services (TCS), leases around 630,000 square feet of office space in Chennai’s Ozone Techno Park, indicating the country’s IT sector is seeing some signs of expansion despite a broader slowdown.
“GCCs continue to be the flavour”, as India’s largest IT services company, Tata Consultancy Services (TCS), leases around 630,000 square feet of office space in Chennai’s Ozone Techno Park, indicating the country’s IT sector is seeing some signs of expansion despite a broader slowdown.
The 10-year lease, which will see TCS pay a monthly rent of Rs 2.8 crore, is one of the largest office space deals in recent months. According to property analytics firm Propstack, the lease terms include a 12% rent increase every three years.
Global Capability Centres (GCCs) have been driving office space demand in India, accounting for 45% of gross office space leasing in the January-March period, which totalled 18 million square feet, according to CBRE India.
TCS’s move is part of a larger trend of IT companies in India expanding their operations. Last year, the company leased over 1 million square feet of office space in Hyderabad for 15 years. However, the slowdown in the IT sector has led to a mixed trend in office space leasing, with some companies rationalizing costs and others expanding.
Industry experts say that while the broader economic factors and technological shifts are impacting the IT sector, companies are continuing to commit to significant office spaces, reflecting diverse operational strategies. “This transaction also indicates that while GCCs continue to be the flavour, IT companies in India continue to expand”, said Raja Seetharaman, co-founder of Propstack, quoted on Livemint.
