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These centers are typically located in talent-rich, cost-effective countries like India, now which is emerged as the GCC capital of the world, and they support the parent company’s global operations.
Global Capability Centers (GCCs) have played a pivotal role, especially in the post-COVID-19 era, by empowering global enterprises to drive innovation at scale. They have shifted from being cost-centric to value-centric and provide access to a global talent pool. Fast forward to the 21st century, and we’re witnessing the emergence of corporate polymaths in the form of GCCs.
Nowhere is this evolution more evident than in India, where GCCs have transcended their initial role as cost-saving back offices to become hubs of innovation, driving core functions such as R&D, engineering, and product development.
But what’s driving this remarkable growth? Let’s explore the eight key reasons why companies are setting up their GCCs, with a particular focus on India’s thriving GCC ecosystem.
Here are 8 reasons why you need to setup a GCC in India
India’s vast and skilled workforce is a primary draw for GCCs. With over 1.9 Mn professionals already employed in GCCs, companies gain access to a deep pool of talent across various domains. The country’s robust education system, producing millions of STEM graduates annually, ensures a steady supply of qualified professionals. Moreover, the diversity of this talent pool, spanning different regions, languages, and cultural backgrounds, brings a wealth of perspectives to global operations.
While no longer the sole driver, cost efficiency remains a significant factor. GCCs in India offer substantial cost savings compared to operating in developed markets. However, the focus has shifted from mere cost-cutting to value creation. GCCs are now strategic assets that optimize operations while driving innovation. For instance, the projected revenue generation of over USD 100 Bn by 2030 from Indian GCCs demonstrates their evolving role in creating tangible business value.
India’s strategic location provides GCCs with a gateway to emerging Asian markets. This proximity allows companies to better understand local consumer behaviors, adapt products for regional preferences, and respond swiftly to market changes. As India’s own market continues to grow, GCCs are well-positioned to tap into new opportunities and drive expansion strategies.
The rapid adoption of advanced technologies in Indian GCCs is fostering an environment of accelerated innovation. As of 2024, 86% of GCCs are actively involved in AI and Machine Learning projects, up from 65% in 2019. This technological prowess, combined with a culture of collaboration, is enabling GCCs to drive global innovation initiatives. Cross-functional teams and diverse skill sets within GCCs are leading to breakthrough solutions across industries.
Geographically diverse operations enhance a company’s resilience to localized disruptions. Indian GCCs, with their proven track record in managing critical functions, serve as excellent risk mitigation centers. The COVID-19 pandemic underscored the importance of having robust, geographically distributed operations, and GCCs in India demonstrated their ability to ensure business continuity even in challenging circumstances.
The maturity of India’s GCC ecosystem offers unparalleled scalability and flexibility. Companies can rapidly scale their operations up or down based on business needs, leveraging the country’s vast talent pool and well-developed infrastructure. This flexibility is crucial in today’s fast-paced business environment, allowing companies to respond swiftly to market changes and opportunities.
India’s evolving regulatory landscape and increasing focus on data protection and privacy make it an attractive destination for GCCs. Companies can leverage local expertise to navigate complex regulatory environments across global markets. Moreover, the presence of established GCCs has led to the development of robust governance frameworks, ensuring high standards of compliance and risk management.
GCCs offer unique opportunities for professional growth, making them attractive to top talent. The chance to work on global projects, exposure to cutting-edge technologies, and career advancement opportunities within a multinational setting help in attracting and retaining skilled professionals. This talent retention is crucial in today’s competitive job market, especially in high-demand fields like AI, Data Science, and Cybersecurity.
Shaping the Future of Global Capability Centers
The transformation of GCCs into enterprise shape-shifters is redefining the contours of global business. At the heart of this shift is India—powered by its deep talent pool, technological strength, and ability to drive large-scale transformation.
But this evolution hasn’t happened overnight. It’s the outcome of a steady, three-decade journey in GCC maturity. Over four distinct waves, India’s GCCs have moved from being cost-efficient outposts to becoming high-impact, strategically aligned hubs. This maturity isn’t just about scale—it marks a fundamental shift in ownership, capability, and influence, with India now leading global innovation, digital transformation, and strategic decision-making for enterprises across industries.
As GCCs continue to evolve, they’re not just optimizing operations but are becoming integral to companies’ global strategies, driving innovation, and creating significant value. The projected growth to 3,000 GCCs in India by 2030 is a testament to their strategic importance. Companies that harness the full potential of their GCCs stand to gain a significant competitive advantage in an increasingly complex.
Connect with us at info@zinnov.com to discover how your organization can leverage India’s thriving GCC ecosystem.
A Global Capability Center, often abbreviated as GCC, is a dedicated offshore unit set up by multinational companies to handle strategic business functions. These centers operate as an extension of the parent company and are responsible for delivering high-value services such as R&D, IT, finance, HR, and innovation – all aligned with the organization’s global objectives.
Global companies are increasingly setting up Global Capability Centers (GCCs) in India to leverage its deep, high-quality talent pool, especially in areas like AI, engineering, data science, and product development. As of 2025, India is home to over 1,760 GCCs, employing more than 1.9 million professionals. These centers have matured well beyond their original mandate of cost arbitrage, evolving into strategic hubs that drive innovation, digital transformation, and global product ownership.
With access to world-class talent at scale and favourable economics, companies are increasingly co-locating leadership, R&D, and technology functions in India. By 2030, the number of GCC units in India is projected to grow to 2,200–2,300, with the workforce expected to reach 2.5–2.8 million professionals. This growth is being fueled by the rise of digital-first enterprise models, AI-led disruption, and expansion into Tier-II and Tier-III cities, firmly positioning India as the global epicenter for enterprise innovation and transformation.
Indian GCCs today are responsible for end-to-end ownership of product development, engineering, data science, AI/ML, cybersecurity, customer experience, and even strategic decision-making. They’ve moved far beyond traditional IT services and now lead global initiatives for their parent organizations, acting as centers of excellence in areas like cloud modernization, automation, and sustainability. Notably, over 40% of GCCs in India are now actively leading their global organizations’ AI charters, from building foundational models to driving enterprise-wide AI adoption strategies. This leadership in AI underscores the strategic importance of India’s GCC ecosystem as a global innovation powerhouse.
Depending on the scale and complexity of the operation, it typically takes between 3 to 6 months to set up a fully functional GCC in India. With the help of a GCC consulting and setup expert and a robust setup playbook, companies can fast-track this process and achieve operational readiness in record time.
Not at all. While technology companies were the early adopters of the GCC model, today it spans across industries like healthcare, BFSI, automotive, retail, energy, and even media. In the automotive sector, global OEMs and suppliers are using their India GCCs to drive EV innovation, autonomous mobility, software-defined vehicle development, and advanced simulation. Retail giants are leveraging India centers for personalized customer experiences, supply chain optimization, and AI-powered pricing and inventory management systems. Global pharmaceutical companies are running advanced drug discovery, clinical trials analytics, and regulatory tech programs from India, accelerating innovation timelines and ensuring compliance at scale. Financial institutions, too, are building AI-driven underwriting models, real-time fraud detection, and digital banking experiences—all from their Indian capability centers. This cross-industry adoption underscores the strategic value of India not just as a talent hub, but as a global engine for innovation and transformation.
The Indian GCC ecosystem is set to grow into a $100+ billion market by 2030, reflecting its pivotal role in global enterprise transformation. With more than 1,700 GCCs already operational in Tier I cities like Hyderabad, Bangalore, Chennai, Mumbai, Pune, and NCR—and with newer cities like Coimbatore, Bhubaneswar, and Ahmedabad joining the fold—the ecosystem is rapidly expanding. By 2030, India is expected to house over 2,000–2,200 GCCs, marking a significant surge in both scale and strategic influence.
es, mid-market companies are increasingly adopting the GCC model as they seek to scale efficiently, drive innovation, and tap into global talent. While GCCs were historically the domain of large enterprises, falling entry barriers, modular operating models, and India’s mature GCC ecosystem have made it feasible for mid-sized firms to establish their own capability centers.
Mid-market GCCs are often leaner, more focused, and more digitally native compared to their enterprise counterparts, making them well-positioned to experiment, pivot, and scale quickly.
By 2030, this segment is expected to contribute significantly to the next wave of GCC growth in India, especially in emerging tech hubs and Tier II cities.
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