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When Victoria’s Secret opened its first store in Mumbai’s Palladium Mall in 2022, it was looking to tap into India’s growing consumption boom and increasingly affluent shoppers. But beyond expanding its retail footprint, the American lingerie brand also saw a strategic opportunity in India’s deep pool of skilled technical talent. To support and accelerate its global digital transformation strategy, Victoria’s Secret established a Global Capability Centre (GCC) in Bengaluru. The goal was clear: to leverage India’s expertise in digital innovation to enhance customer experience, streamline operations, and drive growth across global markets.

Today, India has become an innovation hub for global brands such as Neiman Marcus, IKEA, H&M and, most recently, Albertsons Companies. About 30% of global retail and consumer packaged goods (CPG) giants have chosen India as the base for their GCCs.   

While such centres were traditionally concentrated in sectors such as IT-ITeS, BFSI, and pharmaceuticals, the past few years have seen a notable shift. Multinational retail companies are increasingly setting up GCCs in Bengaluru, Hyderabad and Chennai to drive functions such as e-commerce, data analytics and AI-driven personalisation.

So, what’s prompting these enterprises to run their GCCs in India? Let’s take a closer look.

The retail industry is labor intensive and requires talent possessing both technical and non-technical skills. With the overall retail sector in India growing at 7% year-on-year in May this year, the demand for talent is only going to increase. Availability of human capital for customer-facing roles, inventory management, store operations and merchandising — which do not necessarily require technical skills — can support the entire shopping experience. Additionally, for technical skills like data analytics and digital marketing, along with opportunities for upskilling, the country offers massive human capital and keeps the workforce future-ready.

Take for example, Victoria’s Secret GCC in Bengaluru. When the iconic lingerie brand decided to drive its digital transformation strategy out of India, it tied up with ANSR, the global firm experts in establishing GCCs in the country. Forming a strategic partnership with the American retailer, ANSR understood the challenges of access to local expertise, navigating the regulatory landscape, and acquiring the right talent. However, in a short span, the Bengaluru GCC of Victoria’s Secret has emerged as a key hub driving the company’s digital transformation with a workforce of over 600. The India team used experience centres and Point-of-Sale labs to test with real users and gather feedback, making sure the retailer’s technology meets customer needs.

According to an ANSR report published last year, the surge in global retail and CPG brands setting up GCCs in India is fuelled by success stories such as Walmart, Target, IKEA, and others. This shows no signs of slowing down with 25 new centers expected within the next three years.

Experts point out that government support and policy frameworks are key factors in the growth of GCCs. National-level initiatives — such as SEZ tax breaks, a unified policy framework for GCCs, and clear guidelines on transfer pricing and GST compliance are helping drive this momentum. States across India are also rolling out tailored policies and incentives to attract GCCs. These often include financial benefits like subsidies on operational expenditure or payroll, as seen in Uttar Pradesh, which also offers skill grants. Similarly, Karnataka offers rental refunds, electricity duty waivers, and promotes the development of tech parks. Gujarat extends benefits related to the Employee Provident Fund (EPF) and various loan schemes. Tamil Nadu and Telangana are offering capital subsidies and streamlining processes through single-window clearance systems. The country’s robust digital infrastructure including high-speed fiber internet, over 180 large-scale data centres, and the Smart Cities Mission, are also driving the GCC growth. 

Beyond the numerous schemes and policies, there is also the lure of an increasing consumer base. In 2024, about 5.7% of the population had over ₹20 lakhs as their annual household income. This is only going to grow in the future with a projected growth of more than 4% by 2034. According to data, India is projected to be the third largest economy in the world by 2030. 

Today, the narrative of retail GCCs is beyond cost arbitrage, or access to one of the best talents, it is about competitive advantage in the global marketplace.