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India is seeing a new breed of smaller tech hubs called Nano Global Capability Centre (GCC). Unlike large global centres, these lean teams are growing fast and changing how companies work across borders. They are not just a trend—they’re becoming a key part of India’s tech story.

Unlike traditional GCCs, employing thousands and spanning multiple functions, Nano GCCs operate with teams as small as 25 to 250 people. Their strength lies in specialisation. Concentrating on high-value domains such as AI, machine learning, advanced analytics, cloud engineering, semiconductors and biotech, these centres act as innovation testbeds. They allow global firms to prototype, test and scale cutting-edge solutions at speed, without the drag of bureaucracy.

Mid-sized and smaller global firms are increasingly choosing Nano GCCs to tap into India’s talent without the overheads of traditional models. The agility of Nano GCCs is their biggest draw. Their compact design reduces operational complexity, accelerates decision-making and shortens time-to-market. For enterprises battling disruption in AI, automotive, fintech, or healthcare, this speed is critical. They are also cost-efficient by design, operating on lean infrastructure while delivering targeted value. Especially for the mid-market companies that may not have the budgets to build sprawling GCCs but aim to leave a global footprint in innovation and R&D.

Crucially, Nano GCCs double up as risk diversification hubs. By tapping into India’s Tier II and Tier III cities—Coimbatore, Jaipur, Bhubaneswar, or Vadodara—they allow companies to avoid talent saturation in metros and expand closer to new pools of digital talent.

India’s policy environment is also adding momentum. Initiatives such as Digital India, Startup India and SEZ incentives, along with state-level GCC policies in Karnataka, Gujarat and Telangana, are making it easier for firms to set up quickly. These policies dovetail with India’s rich talent pipeline, powered by skilling programmes like Skill India, ensuring Nano GCCs have access to niche expertise in AI, cybersecurity and engineering.

Early adopters are proving the model’s promise. MemryX, a US semiconductor firm, opened a Nano GCC in Bengaluru to accelerate AI research at the edge. Kapitus, a financial services company, built a 100-member GCC in Chennai focused on business analytics and IT services. Biotechnology major Illumina has set up a compact genomics centre in Bengaluru, driving innovation in healthcare. These examples demonstrate how Nano GCCs are not only lowering the entry barrier for global firms but also embedding India deeper into high-value innovation chains.

By 2030, India’s GCC market is projected to touch US$110 billion and Nano GCCs are poised to be a significant contributor to that growth. Their flexibility, sectoral diversity and cost advantage make them the perfect bridge for global companies aiming to combine innovation with efficiency.

In essence, Nano GCCs are more than just a smaller version of traditional GCCs. They represent a paradigm shift—from scale-driven delivery to specialisation-driven innovation. For India’s tech ecosystem, they might be the next step in its growth.