Mid-sized, Big Moves: How Mid-market GCCs Are Fueling Growth

Walk into your favorite coffee shop, and chances are the barista already knows your order. Over time, familiarity turns into trust. Trust turns into influence. Eventually, you stop looking at the menu, they just know what works for you.

That’s the journey Global Capability Centers (GCCs) have been on. From operational outsiders to deeply integrated partners. From just taking orders to co-designing the experience.

But here’s what’s changing.

It’s no longer just the tech giants and Fortune 500s placing those complex, high-stakes orders. Mid-sized companies – leaner, ambitious, and digitally hungry – are pulling up a chair, too. And they’re not asking for the basics. They’re crafting bold, innovation-first agendas. 

The rise of Mid-market GCCs tells us something important: this model isn’t exclusive anymore. It’s essential.

What Are Mid-market GCCs?

For years, the GCC playbook seemed reserved for the world’s biggest boardrooms. But that assumption is unraveling quickly.

Today, a growing number of Mid-sized firms, typically in the USD 100 Mn to USD 1 Bn revenue bracket, are establishing their own GCCs in India. These aren’t stripped-down versions of Enterprise setups. They are focused, high-impact centers that operate with precision, speed, and deep alignment to core business goals.

They’re what we now call Mid-market GCCs.

Unlike sprawling Enterprise hubs with thousands of employees, Mid-market GCCs are intentionally lean. The average headcount? Just 448 people – a third of the size of their larger counterparts. But what they lack in scale, they more than make up in intensity. These centers are often tasked with product engineering, platform innovation, and even full-cycle ownership of digital initiatives.

In many ways, they behave less like innovation centers – and more like internal start-ups – with a direct line to the C-suite.

Why Now? What’s Driving This Surge

Mid-sized companies are under pressure.

The pace of tech change is accelerating. Talent is expensive and scarce. Customers demand speed and personalization. Traditional operating models just can’t keep up. For these firms, setting up a GCC is not a luxury. It’s a strategic unlock.

India, with its deep talent pool, cost advantages, and maturing start-up-style culture, provides the perfect testbed for building innovation muscle. And the numbers speak for themselves:

• Over 480 Mid-market GCCs are now operational in India
• Together, they employ more than 210,000 professionals
• In the last five years alone, 110+ new centers have been set up, 35% of all new GCC activity

And these aren’t support functions. They are transformation engines.

Mid-market GCCs are 1.3X more likely to operate as digital innovation hubs. Nearly 47% of global Product Management talent in these setups is now based in India. And while they may be smaller, they’re disproportionately influential, driving over 60% of Enterprise Product/Platform Portfolios and accelerating leadership pipelines 20% faster than traditional setups.

Policy Tailwinds and a National Bet

The Indian government is laying the groundwork for the next wave of Mid-market GCC growth. From tax breaks to talent development, India’s central and state governments are creating fertile ground for these centers.

Policies like the Production Linked Incentive (PLI) scheme, coupled with infrastructure support, have made India a magnet for Mid-sized firms looking to set up innovation centers. Karnataka, for instance, has introduced a new framework to attract Mid-sized firms to cities like Bengaluru, Mysuru, and Mangaluru, offering reduced rental costs, streamlined regulatory approvals, and payroll subsidies – creating the right conditions for these firms to scale quickly and effectively.

The Strategic Questions Leaders Must Ask

Still, a Mid-market GCC is not a checkbox initiative. It’s a commitment. And like any commitment, it demands honesty.

• Are they ready to move beyond cost-saving to strategic growth?
• Do we have the leadership and cultural depth to build globally distributed teams?
• Can we architect a model where a 500-person team in India is not peripheral—but central to business strategy?

Because make no mistake, the cost savings are real. But the real win is strategic leverage.

The Bottom Line?

Think of Mid-market GCCs as the synapses of global businesses. Just like neural networks in the brain, they connect talent, technology, and strategy to create new pathways for growth. This is where ideas are born, products are built, and competitive advantages take shape.

In a world where speed and innovation are currency, standing still is falling behind – and owning the pieces means nothing if someone else is making the moves. The companies that act now will define their industries for the next decade. Those that hesitate may find themselves struggling to catch up in a world that won’t wait.