India’s GCCs: Evolution from efficiency centres to innovation hubs
1 Apr 2025 / 06 min read
India’s rise as a global powerhouse for enterprise innovation is one of the most significant economic transformations of the past three decades. What began as a cost-saving experiment by multinational corporations in the late 1990s has evolved into a strategic ecosystem driving cutting-edge technology and business innovation.
As global businesses grapple with digital disruption, AI-led transformation, and geopolitical shifts, India’s Global Capability Centers (GCCs) have emerged as critical engines of enterprise reinvention—powering everything from AI-driven automation and cloud computing to cybersecurity and deep-tech R&D.
A recent GCC Industry Brief by Inductus (Feb 2025) underscores the scale and speed of this transformation. With over 1,800 GCCs employing 1.9 million professionals, the sector is projected to grow from $64.6 billion in 2024 to $110 billion by 2030.
Companies like Microsoft, Cisco, JPMorgan Chase, and Sanofi are expanding their footprint in India, leveraging the country’s 5.5 million-strong IT workforce and government incentives such as SEZ benefits, tax breaks, and FDI-friendly policies. This growth is not limited to traditional hubs like Bengaluru, Hyderabad, and Pune—emerging cities like Indore, Coimbatore, and GIFT City are fast becoming preferred destinations for GCC investments, reinforcing India’s position as a global hub for high-value business operations and technology-led innovation.
This trajectory, however, was set in motion decades ago. In 1985, when a pioneering American engineering company set up its first R&D center in Bangalore, it relied on a bullock cart to transport its satellite dish—critical for seamless communication with its U.S. headquarters. A moment that symbolized India’s transition from an agrarian economy to a technology leader? Perhaps. But few could have predicted that this modest beginning would lead to India becoming the GCC capital of the world.
Four decades after that first satellite dish helped bridge continents, India has a new moniker - the Global Capability Centers (GCC) capital of the world. One that is no longer just saving costs, but sitting right at the forefront of enterprise and digital transformation.
But this transformation has not been linear. It’s been a hockey stick curve, if anything, with the past decade playing a pivotal role in shaping this new identity. The scale of this transformation is also apparent beyond India’s leading GCC hubs of Bangalore, Hyderabad, Mumbai and Pune. In Indore, engineers at a leading telecom automation centre have filed hundreds of patents in just a few years, underscoring the city’s growing influence in global technology development.
Further south, Coimbatore is fast becoming a preferred destination for companies setting up GCCs, driven by its rich talent pool and competitive operational costs. Its strong entrepreneurial culture, engineering expertise, and robust educational ecosystem make it ideal for global enterprises seeking innovation and scalability.
Efficiency Centres or Innovation Powerhouses? The playbook has been evolving and how! Offshore cost centres handling back-office operations are old news. GCCs have steadily moved up the value chain. From the days of cost-saving capital centres in the early 2000s to Global In-house Centres (GICs) in the 2010s concentrating on operational excellence and innovation.
Today, this translates to AI-driven solutions, optimising supply chains with predictive analytics, and driving automation at scale—critical functions that shape the future of industries worldwide. For many enterprises, this evolution of their GCC model has required significant recalibration—rethinking their role, expanding capabilities, and investing in high-skill talent.
It’s a transformation that is also reflected in the numbers. A report by NASSCOM and Zinnov projects that India’s GCC market size will reach between $99 billion and $105 billion by 2030, up from $64.6 billion in fiscal 2024. The number of GCCs is also set to grow significantly, with estimates indicating that India will host between 2,100 and 2,200 centres by the end of the decade, employing up to 2.8 million professionals.
These figures highlight the increasing reliance of global enterprises on India’s GCC ecosystem for driving innovation, agility, and long-term business impact. Recent global investments in the country further validate this transformation. A leading German optical technology firm recently inaugurated its first GCC in Bengaluru, focusing on cloud computing, cybersecurity, and software services, with plans to double its Indian workforce to 5,000 within three years.
The Government of India and several state governments have been instrumental in accelerating the country’s GCC expansion by strengthening both policy frameworks and infrastructure. The Zinnov-NASSCOM report highlights key initiatives such as the Gujarat Semiconductor Policy 2022-2027 and the Madhya Pradesh IT, ITeS & ESDM Investment Promotion Policy 2023, which have enhanced physical and digital infrastructure in Tier-II and Tier-III cities, making them attractive destinations for new GCC setups.
Improved connectivity through initiatives like the Vande Bharat trains and the UDAN regional air connectivity scheme has further facilitated the decentralization of GCC operations beyond metropolitan hubs.
Furthermore, states like Karnataka and Tamil Nadu are developing dedicated GCC-focused policies—such as the Karnataka Data Center Policy and the Startup TN policy—to drive growth in emerging IT hubs. These are proactive measures that not only support global enterprises as they set up innovation-driven GCCs, but they also reinforce India’s position as a strategic destination for high-value business operations.
Indeed, India’s GCC journey has come a long way. But as global economic uncertainties, rapid technological disruptions, and shifting trade dynamics redefine industries, the next phase of growth will require GCCs to push beyond adaptation and take on a leadership role in shaping global business strategy. The integration of generative AI, deep-tech research, and sustainable business models will determine whether India’s GCCs remain reactive to global trends or become active architects of the future digital economy.
The decade before us is not just about India’s dominance in the GCC space—it is about whether these centers can drive a broader transformation that can cement India’s place as the epicentre of global enterprise reinvention.
