"Discover why India is the top destination for Global Capability Centres (GCCs). Explore India’s GCC market size, success stories, best practices, and future outlook in this detailed white paper."
- srkgamechangers
- Sep 21
- 3 min read
(A) Introduction:
India has become the world’s leading destination for Global Capability Centres (GCCs), hosting over 1,600 centres for 1,000+ multinational corporations. Once limited to back-office work, today’s GCCs in India drive digital innovation, AI, R&D, and global business operations.
This white paper explores the growth of GCCs in India, the economic impact, real-life examples of successful GCCs, and the best practices for setting up a GCC in India.
(B) Why Set Up a Global Capability Centre (GCC) in India?
India is widely recognized as the GCC capital of the world. Multinational corporations prefer India due to:
Skilled Talent Pool: 5 million STEM graduates annually with expertise in AI, cloud, and analytics.
Cost Advantage: 40–60% lower operating costs compared to the US or Europe.
Government Support: Digital India, Startup India, and special SEZ/STPI incentives.
Deep Ecosystem: Tech majors, startups, research institutes, and global consulting networks.
(C ) Economic Impact of GCCs in India
The GCC sector in India is now a $110 billion industry with strong growth potential:
Market Growth: Direct output reached USD 76 billion in FY25, projected to hit USD 110 billion by 2030.
GDP Contribution: Contributes about 2% of India’s GDP and 4% of services GDP.
Employment: Over 2.1 million professionals directly employed and 10.4 million total jobs created (direct + indirect).
Export Powerhouse: Net exports of USD 62 billion in FY25, projected to reach USD 116 billion by 2030.
(D) GCC Success Stories in India:
Real-world examples show how India-based GCCs are innovation engines:
Hexagon (Hyderabad): Runs its largest R&D hub globally, partnering with IIT Hyderabad.
AstraZeneca (Chennai): Built VR-based training and supported COVID-19 vaccine development.
Infosys’ new GCC Center in Kharadi, Pune is set up as a CoE focusing on AI, generative AI, business-tech transformation, and innovation-led delivery. This is not just about scaling operations; it’s about pushing into higher value work.
Novartis (Hyderabad & Mumbai): 9,000+ professionals working on drug development and clinical trials.
(E) Pune Case: Leveraging Domain Strength, Innovation & Quality Infrastructure:
Pune is emerging as a “micro-market mosaic” for GCCs — domains such as BFSI, ER&D, fintech, automotive tech, are each gravitating to locations (Hinjawadi, Kharadi, Balewadi etc.) that match their specific needs.
Key Practices in Pune
• Establishing CoEs early for AI/ML and innovation-led delivery (Infosys, SA Technologies) rather than waiting until scale.
• Prioritizing employee experience through choice of office space, amenities, connectivity (Entrata’s move to ABIL Boulevard).
• Committing to diversity (e.g., Cummins’ 55% women hires) to improve employer brand and retention.
• Lean cost structure: saving 20-30% on real estate and operating costs versus more saturated metros, without major tradeoffs on connectivity or infrastructure.
• Micro-market specialization enabling more domain-aligned GCC setup (engineering in certain zones, financial services in others) benefiting both the GCC and the local community.
Tier-2 Cities: The Next Wave of GCC Growth in India
Beyond Bengaluru and Hyderabad, Tier-2 cities in India are attracting GCC investments:
Cities like Coimbatore, Kochi, Indore, and Jaipur are emerging GCC hubs.
25–30% lower costs compared to metros.
Strong university presence and growing infrastructure.
Jaipur jumped from rank 63 to 15 in Dun & Bradstreet’s City Vitality Index due to GCC expansion.
Best Practices for Setting Up a GCC in India
For organizations planning a GCC in India, these practices ensure success:
Choose the Right Location – Balance Tier-1 tech hubs with Tier-2 cities.
Hire and Train Talent – Build university partnerships, invest in upskilling.
Adopt the Right GCC Operating Model – Move from cost centre to innovation centre.
Leverage Digital Infrastructure – Ensure cloud readiness, cybersecurity, and compliance.
Stay Compliant – Follow data privacy, SEZ/STPI, and IP regulations.
Engage with Ecosystem Partners – Collaborate with startups, incubators, and academia.
Future of GCCs in India: Outlook 2030
By 2030, the India GCC sector will:
Cross USD 110 billion in annual revenue.
Employ 2.8 million direct employees with premium salaries.
Create global innovation hubs in Tier-2 cities.
Lead in AI, cloud, and sustainability-driven innovation.
Conclusion
India is the undisputed global leader in GCCs. With its talent pool, cost advantages, innovation ecosystem, and policy support, India offers a future-ready platform for multinational corporations.
For companies evaluating global strategy, setting up a GCC in India is a competitive necessity—not just a cost-saving measure but a long-term innovation investment.
