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A Global Capability Center (GCC) also known as a Captive Center/Global In-house Center (GIC) — is an offshore unit set up by a global enterprise to perform a wide range of strategic, technical, and operational functions.
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.
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