Mid-Market GCCs in Karnataka are Emerging as Strategic Innovation Engines, Maturing 1.4X Faster than Peers: Zinnov–KDEM Study

Mid-Market GCCs in Karnataka are Emerging as Strategic Innovation Engines, Maturing 1.4X Faster than Peers: Zinnov–KDEM Study

Bengaluru, September 09, 2025: The Karnataka Digital Economy Mission (KDEM), in collaboration with global management consulting firm Zinnov, today released the “Karnataka Mid-Market GCC Report 2025: Lean, Local, and Globally Impactful,” spotlighting Karnataka’s leadership in India’s mid-market Global Capability Centers (GCCs).

The report underscores Karnataka’s position as the epicenter of India’s GCC mid-market growth, with the state housing over 50% of the 480+ centers (230+ mid-market GCCs) and employing 74,000+ professionals. These centers are not just expanding faster; they are maturing 1.4X quicker than larger peers, embracing product ownership, CXO-level leadership, and embedding AI-first strategies.

Mid-market GCCs now represent 27% of India’s total GCC ecosystem, and Karnataka continues to attract a disproportionate share of new setups, with nearly 50% of all new mid-market GCCs in India since 2023 established in the state.

Backed by India’s first dedicated GCC Policy, progressive talent and skilling initiatives, and the transformative ‘Beyond Bengaluru’ program, Karnataka provides access to world-class talent within a policy framework that blends speed, cost efficiency, and ecosystem depth reinforcing its position as the global launchpad for lean, high-impact innovation.

Announcing the findings, B.V. Naidu, Chairman, KDEM, said: “Karnataka is not just a hub, it is the backbone of India’s global innovation leadership. Hosting nearly half of India’s 480+ mid-market GCCs and 74,000+ professionals, our state is setting the benchmark for lean, high-impact innovation. These GCCs are redefining success with agility, talent density, AI-first mandates, global product ownership, and CXO-level leadership. Through India’s first GCC Policy and the ‘Beyond Bengaluru’ initiative, we are driving balanced, inclusive growth by unlocking the potential of emerging cluster cities making Karnataka the preferred destination for global enterprises and a strategic engine for India’s digital nation-building journey.”

Commenting on the study, Pari Natarajan, CEO & Co-founder, Zinnov, said: “Mid-market GCCs are rewriting the rules of global capability building. In Karnataka, more than 40% of these centers are already driving end-to-end product ownership and CXO-level mandates—a level of maturity that traditionally took a decade to achieve. What’s striking is that this acceleration is happening in just three to five years, signaling not only the quality of talent but also the depth of ecosystem integration here.

Looking ahead, as India’s GCC sector moves towards a USD 100 billion opportunity by 2030, Karnataka’s mid-market GCCs will be its sharpest growth lever—pioneering innovation in AI, cybersecurity, and cloud-native products while creating leadership pathways for Indian talent on a global scale. This is more than a Karnataka story; it is the India story of the next decade—where lean, high-impact centers in Bengaluru and beyond become the launchpads for the world’s next wave of digital reinvention.”

Key Findings from the Zinnov–KDEM Report

• Karnataka is Driving the Global Narrative on Lean Innovation Hubs
  • 230+ mid-market GCCs employing 74,000+ professionals the highest for any Indian state.
  • Operating at just 35% the size of larger peers but consistently delivering superior innovation and productivity.
  • Taking on end-to-end product mandates, global digital infrastructure ownership, and CXO-level roles.

• Bengaluru: India’s DeepTech Capital
  • Anchors over 240 mid-sized GCC units.
  • Houses 50% of India’s AI/ML talent and 38% of the digital workforce in mid-market GCCs.
  • Contributes 48% of all global mid-market GCC engineering talent and 50% of India’s product management talent in this segment.

• Accelerated, Inclusive Growth via Policy Support
  • Karnataka’s mid-market GCCs maturing 1.4X faster than national peers.
  • 65% of all new mid-market GCCs in India (since 2023) have been set up in Karnataka.
  • ‘Beyond Bengaluru’ initiative expanding growth into Mysuru, Mangaluru, Hubballi–Dharwad, and Belagavi, with 15–25% lower costs and attrition rates.

• Mid-Market GCCs Punching Above Their Weight
  • Driving AI, Cloud, Cybersecurity, and Analytics innovation.
  • Building AI Centers of Excellence, owning product charters, and embedding global leadership roles.
  • Companies like Flexera, Bazaarvoice, Planview, and HERE have scaled rapidly from Karnataka.

• Resilience Amid Global Uncertainty
  • Karnataka’s GCC ecosystem has maintained growth despite macroeconomic volatility, thanks to deep start-up linkages, university partnerships, and a future-ready talent pool.

Additionally, Dr. Ekroop Caur, IAS, Secretary, Department of Electronics, IT, Bt & S&T, Government of Karnataka, said, “This year marks a milestone in Karnataka’s journey as a global powerhouse for mid-market Global Capability Centres (GCCs). India today hosts over 480 mid-market GCCs, and Karnataka alone accounts for 230+ of them – nearly half of the national total. With more than 35% of India’s GCC workforce based here, the state has emerged as both India’s largest hub and its most ambitious. Backed by the country’s first dedicated GCC Policy (2024–29) and the ‘Beyond Bengaluru’ strategy, we are strengthening Bengaluru’s global standing while unlocking the potential of tier-II emerging cluster cities. Our vision is clear: by 2029, Karnataka will add 500 new GCCs, create 350,000 jobs, and generate US $50 billion in economic output. The findings from Zinnov reaffirm this trajectory showing how Karnataka’s mid-market GCCs are maturing faster, driving AI-first innovation, and setting global benchmarks. This convergence of policy vision, industry confidence, and talent depth cements Karnataka as the most trusted destination for GCC-led digital transformation.”

To read the full study here : Mid-Market Global Capability Center Report

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