U.S. Companies are top occupiers in India

India remains one of the top outsourcing destinations in the Asia-Pacific Region and US corporates account for most of the office-leasing activity due to India’s inherent low costs and skilled resource base. Some of the biggest US companies that have leased office space in India include Microsoft, Amazon, Google, IBM, Cognizant, Convergys, Bank of America, JP Morgan, Wells Fargo. While many companies have been outsourcing to third party firms, players in the Banking, financial services and insurance (BFSI) have opted for captive centres due to statutory requirements henceforth they have set up their own centres. The highest growth is coming from technology, BFSI and e-commerce space. Bengaluru remains a key driver of office leasing followed by other top cities such as Hyderabad, Delhi NCR, Pune, Chennai and Mumbai.

Improving infrastructures such as IT infrastructure in terms of data management, networking and telecom services combined with building infrastructure facilities at a lower cost have become main attractions for American companies. American companies are the biggest occupiers of office space in India occupying about 48% of grade ‘A’ space and they continue to expand their operations leveraging the low costs and highly-skilled resource base in the country. This is followed by domestic companies, which account for about 37% of the office space absorption. Companies from the European Union take the third spot with around 10% while APAC countries and the rest of the world account for about 5%.

A US-based company that founded its Indian Headquarters at Hyderabad in 1990 now has two subsidiary offices in Gurgaon and Bangalore. Improvements in IT infrastructure have enabled this expansion and continued investment in the Indian market. The company has come a long way from its start in India in 1990.