GCCs vs IT Services: Who Is Leasing Office Space in Kochi Now?

Every few weeks, a new report announces another record for office leasing in India. Yet many people I know in the IT world say their own companies are being careful with space. Both things are true, and the gap between them tells you a lot about who is actually leasing office space in Kochi right now.

The numbers that caught my attention

According to JLL, India's office leasing reached a record 61.06 million sq ft between January and September 2026. Global capability centres (GCCs) drove much of it: their leasing grew 30.6% year on year and made up about 42.9% of total demand.

Now the other side. Knight Frank reports that leasing by third-party IT services companies fell by 36% over the same nine months, while GCCs, flex spaces and India-facing businesses picked up the slack.

One honest caveat: these are national figures, and Kochi is a smaller market. But when I look at where Kerala is putting its energy, the direction matches.

What is a GCC, and why does it lease differently?

A GCC is an in-house centre set up by a multinational to handle technology, analytics, finance or engineering work from India. It isn't a vendor selling services to clients. It is part of the parent company.

That changes how it shops for space. A GCC usually plans for years, not months, and the questions tend to be very specific. Is there full power backup? How reliable is the connectivity? Can we take more floors as the team grows? Is there enough parking for hundreds of employees? These are infrastructure questions, not just price questions.

And what are IT services companies doing?

They haven't disappeared, but they are more cautious. Hybrid work has reduced the number of seats many firms need, and clients keep pushing for lower costs. The pattern is smaller floors, shorter commitments, or managed office space in Kochi, where furniture, housekeeping and meeting rooms are already taken care of. When headcount is uncertain, paying only for what you use is simply more comfortable.

Why Kochi keeps coming up

Kerala currently has 45 operational GCCs and wants 150 by 2031, a target the state says could create about two lakh jobs. A steady talent pipeline from local colleges, lower costs than the big metros, and a cluster of IT campuses make office space in Kakkanad an easy pitch. The Kerala Global Digital Transformation & Investment Summit on November 24-25, which includes a GCC-Kerala Investment Forum, will keep the spotlight on the city.

There is also more choice for tenants. Cushman & Wakefield reports record new office completions of 22.7 million sq ft across India's top eight cities in Q3 2026. More supply means you can afford to be pickier about quality.

What this means if you're searching for an office

I'd split it into three types of buyer.

Setting up a GCC? Put scalability and reliability ahead of a low headline rent. Look at established IT parks in Kochi with full power backup, redundant fibre and large parking, because these are hard to retrofit later.

Running an IT services team? Compare managed and bare-shell options honestly. A ready-to-move space can save months and a big fit-out bill, though you give up some control over design.

A startup or SME? Start small. A flexible plan in a well-connected location lets you grow without moving twice.

My checklist before shortlisting any building:

• Power backup: is it truly 100%?
• Network redundancy and fibre providers
• Parking per seat
• Rights to expand into neighbouring floors
• Total monthly cost after GST, maintenance and parking
• Commute, food and amenities for your team

Quick FAQ

Who is leasing the most office space in Kochi? National data points to GCCs as the biggest driver, with IT services firms leasing less. Kochi-specific breakdowns are limited, so ask a local advisor for current numbers.

Is Kakkanad a good location for a GCC? It is where Kochi's major IT campuses are clustered, so talent, infrastructure and neighbouring companies are close by.

Is managed office space cheaper than a bare shell? Often the upfront cost is lower, because fit-out is handled for you. Compare the full monthly cost, not just the rent.

Final thoughts

The story I take from the data is simple: demand hasn't gone away, it has changed shape. If you're comparing options, I'd start by walking through a few campuses. A virtual tour is a quick way to shortlist before you visit. When you're ready to compare what's included, browse office space for rent in Kochi and note the power, parking and amenities side by side.