BENGALURU: US Bancorp is negotiating to lease over 650,000 sq ft of office space in Chennai as it establishes its first global capability center (GCC) in India, marking a significant entry into the country’s flourishing offshore operations sector.
The proposed office will be located at Embassy Tech Splendid, a commercial campus owned by Embassy Office Parks REIT, using a build-operate-transfer service model with Cognizant Technology Solutions, according to sources involved in the discussion. Under this arrangement, Cognizant will initially manage the center before transferring full operations to the bank. The estimated monthly rental is between Rs 4.5-5 crore, indicating a substantial recent office leasing agreement in Chennai’s commercial sector.
The facility will primarily support the bank’s global operations with technology, analytics, and back-office services.
The Minneapolis-based bank is also considering an additional 400,000 sq ft of office space in Bengaluru and Hyderabad as it expands its GCC presence in India over the next few years.
Attempts to reach Cognizant Technology Solutions and Embassy Office Parks REIT for comment went unanswered prior to publication.
The expansion is part of the bank’s strategy to bring more technology and operational capabilities in-house.
Previous industry reports have suggested plans to hire 3,000 to 5,000 employees in India within the next five years, focusing on digital banking, data analytics, and cloud technology initiatives.
Property consultants and developers note that global capability centers are now key contributors to office leasing demand in India’s top cities. American companies have significantly increased their real estate presence in the country, with GCCs accounting for over two-thirds of leasing activity by US firms.
Currently, India is home to more than 1,600 GCCs, employing over 1.6 million professionals, particularly in sectors like banking, financial services, healthcare, and technology, which are leveraging the country as a hub for innovation and digital development.
Banking and financial services firms are among the fastest-growing GCC occupants as they focus on developing internal technology capabilities. Recently, Citizens Financial Group launched a GCC in Hyderabad in collaboration with Cognizant, aimed at enhancing enterprise technology and digital banking initiatives. Likewise, Optum has secured substantial office space in the same Embassy campus to grow its GCC operations.
Embassy Office Parks REIT manages over 50 million sq ft of office assets across five Indian cities, with multinational corporations making up a significant portion of its tenant base.
The REIT is expanding its Chennai portfolio in response to increasing demand from GCCs, R&D centers, and tech firms.
