Japanese Companies Expand Global Capability Centres in India to Drive AI and Innovation: Cushman & Wakefield
Gurugram, October 21, 2026: Japan’s global growth strategy is undergoing a transformation as over 100 Japanese companies establish and expand Global Capability Centres (GCCs) in India. Transitioning away from traditional back-office support and cost reduction, these centres are increasingly focusing on strategic functions, including artificial intelligence, engineering, digital innovation, product development, cybersecurity, and advanced analytics, according to a press release from Cushman & Wakefield.
The transition marks a shift from Japan’s historic focus on overseas manufacturing efficiency to a strategic innovation partnership with India. Japanese GCCs are increasingly serving as hubs of excellence that drive enterprise-wide digital transformation and global business priorities. Key drivers behind this growth include Japan’s demand for technology talent, India’s annual output of 2.5 to 2.8 million STEM graduates, and a mature infrastructure and real estate ecosystem.
Highlighting the structural shift, Arpita Srivastava, Managing Director, APAC Tenant Representation & GCC Advisory, stated, “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. India offers access to highly skilled engineering and digital talent, while providing the scale, infrastructure and ecosystem needed to support long-term growth.”
Beyond corporate operations, Japanese capital is actively funding office campuses and technology parks across India, positioning Japan as a key real estate investor alongside its role as a GCC occupier. While primary tech hubs like Bengaluru, Hyderabad, and Pune continue to attract investments, enterprises are also exploring emerging talent markets to scale operations.
“What we are seeing is a fundamental redefinition of the GCC model,” Srivastava noted, adding that the question for Japanese firms is no longer whether to set up a GCC, but how quickly they can scale strategic capabilities.
Looking ahead, Srivastava emphasized, “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. The next wave of GCC growth will be defined by AI, engineering excellence, innovation and co-creation, and Japanese companies are already moving decisively in that direction. This relationship is evolving into a strategic innovation partnership built on shared expertise, long-term investment and sustainable growth.”
