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In this CNBC TV18 conversation, Karthik Padmanabhan, Managing Partner at Zinnov, unpacks why India has become the epicenter of Global Capability Centers (GCCs).
A Global Capability Center (GCC), commonly referred to as a Captive Center or Global In-House Center (GIC), leverages the global talent pool and cost efficiency of the regions they operate in. A GCC is an offshore or nearshore entity fully owned and operated by a parent company. These centers provide a wide array of specialized services, ranging from information technology (IT) and research and development (R&D) to complex back-office functions. GCCs play a pivotal role in driving innovation, enhancing cost efficiency, and accessing diverse global talent pools at optimal cost.
India stands out as the top choice for GCCs due to its deep tech-talent pool, cost arbitrage, strong infrastructure, and innovation-driven ecosystem. While markets like Vietnam, Poland, and the Philippines offer niche advantage, India leads in talent depth and digital maturity. While other countries face challenges like cost and talent gaps, India stands as the go-to destination for GCC setup and transformation. Its mature ecosystem, strategic partnerships, and strong compliance frameworks help companies navigate regulations, talent retention, and cybersecurity with ease—making India the most resilient and future-ready choice.
By 2030, India is expected to be home to 2,100-2,200 GCCs, employing around 2.5-2.8 million professionals.
The current market size of India’s GCC ecosystem stands at $64.6 billion. By 2030, it is expected to exceed $99 to $105 billion.
Bengaluru is the GCC capital of India, also known as the ‘Silicon Valley of India,’ due to its thriving ecosystem, robust infrastructure, access to a deep talent pool, and an environment that fosters mobility and innovation. It hosts more than 875 GCCs in India, accounting for almost 29% of the total GCCs in the country.
Along with Bengaluru, Hyderabad is gaining momentum as a GCC hub due to its world-class infrastructure for office spaces, strong digital connectivity, SEZs, and business-friendly policies. Hyderabad is home to over 355 GCCs, accounting for almost 21% of the total GCCs in India. Emerging Tier I GCC cities include Chennai, Mumbai, and NCR, collectively contributing close to 92% of total GCCs in India. Other emerging hubs include Tier II cities such as Ahmedabad, Gujarat, Indore, Thiruvananthapuram, Kochi, Kolkata, Coimbatore, Bhubaneswar, and Jaipur, which contribute around 7% of the total GCCs in India
Top companies such as JP Morgan Chase, HSBC, Bosch, UnitedHealth Group, Oracle, American Express, Qualcomm, Ericson, Standard Charter Bank, Shell Technology Center, Intel and Walmart have setup GCCs in India.
AI is transforming GCCs by automating repetitive tasks, enhancing predictive analytics, improving customer experiences, and driving innovation. Companies are embedding AI-driven decision-making to optimize global operations, accelerate new product development, enhance process efficiency, and achieve faster time-to-market for solutions built for the world.
Flexible work models like remote work, flextime, and hybrid structures are becoming the norm, with GCCs increasingly adopting hybrid setups and the SUN model to attract and retain top talent while maintaining productivity and security.
The future of GCCs in India will be shaped by AI-driven intelligent automation, expansion into Tier II and III cities, enhanced focus on Cybersecurity and Data governance, integration of sustainability and ESG initiatives, and deeper collaboration with global headquarters to drive strategic innovation.
Unlike GCCs, which are wholly owned extensions of an enterprise, GBS integrates internal service delivery with external partnerships, establishing a shared governance model that provides both reach and scalability. GBS emphasizes enterprise-wide standardization and efficiency.
With 23+ years of expertise in setting and transforming 200+ GCCs, Zinnov’s approach to a frictionless GCC setup has helped customers reduce time to set up and time to value by 50%. The proven 3-phase model—Design, Implementation, and Governance—ensures hassle-free setup and operations.
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