Vadodara, February 5, 2026, 19:22 (IST)
- Collabera announced the launch of its first Tier-2 global capability center hub in Vadodara, Gujarat
- The firm is targeting Tier-2 cities to build teams more cheaply and maintain steadier hiring rates
- The shift comes as India’s GCC boom extends past its major metro centers
Collabera announced on Thursday the opening of its first global capability center (GCC) hub in a Tier-2 Indian city, choosing Vadodara in Gujarat. This move marks an expansion of its India operations. economictimes.indiatimes.com
GCCs are offshore hubs companies use to manage tasks like software, product support, finance, HR, and other shared services. Their significance is growing as India’s GCC expansion moves beyond major cities, driven by firms hunting for talent and aiming to control costs and turnover.
The Labour and Employment Ministry reported that India hosted over 1,700 GCCs, employing around 1.9 million workers as of 2024. pib.gov.in
Collabera labeled its Vadodara site a capability hub that merges delivery, governance, and hiring into a single operating model. It centers on what the company calls speed, standards, and steady delivery. Collabera aims to achieve Tier-2 cost advantages without sacrificing “Tier 1” execution quality.
The company highlighted Vadodara’s strong industrial base and transport network, pointing to key sectors like chemicals, fertilisers, pharmaceuticals, biotechnology, textiles, machine tools, and glass. It also emphasized the corridor connectivity along the Ahmedabad–Vadodara–Surat route, linked to the Delhi Mumbai Industrial Corridor. On top of that, the city’s cost of living—including rent—is lower than Ahmedabad for a similar lifestyle. business-standard.com
“Tier 2 is no longer an alternative. It’s the expansion strategy,” said Ranjith Doshi, Collabera’s global CFO and India COO, according to a company statement.
Sunny Shah, senior vice president at Collabera, labeled Vadodara “an ideal Tier 2 choice,” citing its “talent availability, affordability, and continuity.” Collabera added that Tier-2 cities often deliver better retention, quicker expansion potential, and less “hiring noise” compared to bigger metros.
A report from January 26 by DeshGujarat noted the company anticipates the facility will create “thousands” of new jobs locally, with most positions aimed at fresh graduates. The piece also highlighted that Collabera has been active in Vadodara for close to 20 years. deshgujarat.com
The company reported that the launch event occurred on Jan. 25, featuring a walkthrough and a media Q&A session. Attendees included sourcing and procurement group SIG members Dawn Tiura, Linda Barnes, and Liz Mantovani, as well as Collabera executives Doshi, Shah, and Pradeep Nair.
But the Tier-2 play isn’t a guaranteed win. When too many companies target the same talent pools, wages can climb and turnover spike, eroding the cost advantage that initially attracted them. Meanwhile, shortcomings in transport, housing, or digital infrastructure can stall growth, even if hiring seems straightforward on paper.
According to Reuters, India’s GCCs pulled in over $64 billion in revenue and accounted for 17.2% of the nation’s services exports by the close of 2024, citing data from FactSet. reuters.com
Staffing firm TeamLease projects India could be home to over 2,400 GCCs by 2030. Neeti Sharma, CEO of its digital business, told Reuters, “there will be more work coming into India,” as multinationals continue relocating operations to the country. reuters.com
