How Indian Providers Are Reshaping the Future of Enterprise Operations

Global Capability Centers (GCCs), once back-office cost-saving hubs, have evolved into nerve centers of strategic innovation. Nowhere is this transformation more evident than in India, which has cemented its status as the world’s GCC powerhouse.

In 2023, over 300 GCCs were set up globally, with India accounting for nearly 45% of these. This trajectory is no accident. The country offers a unique blend of deep talent pools, cost efficiencies, and an increasingly sophisticated digital infrastructure. According to the Economic Survey of India 2025, the GCC sector is expected to contribute over $110 billion to India’s economy by 2030, up from an estimated $46 billion in 2024.

The original premise of GCCs was simple: labour arbitrage. Western multinationals set up operations in India to take advantage of lower costs for IT services, customer support, and back-office functions. But the playbook has changed dramatically. Today’s GCCs are not just cost centers but strategic hubs, driving global R&D, digital transformation, and AI-led innovations.

India’s edge extends beyond sheer numbers. Bangalore, Hyderabad, and Pune have emerged as epicenters of high-value GCC operations, particularly in artificial intelligence, data analytics, and cybersecurity. As the Economic Survey highlights, India now boasts over 1.6 million professionals working in GCCs, with an annual growth rate of 11%.

The Provider Playbook

Perhaps the most striking shift is the changing nature of how GCCs are set up. Traditionally, multinational corporations built GCCs independently. But today, providers—ranging from IT giants like TCS and Infosys to specialist firms like ANSR—play a pivotal role in launching and scaling these centers.

According to industry estimates, over 50% of all new GCCs now involve external providers in some capacity, up from less than 25% five years ago. The Build-Operate-Transfer (BOT) model, in particular, has seen exponential growth—accounting for nearly 40% of provider-assisted GCC setups. As talent shortages and cost pressures intensify in the West, companies are increasingly turning to providers to accelerate their India expansion.

Providers supporting GCCs fall into three broad categories:

1. Traditional System Integrators: Firms like TCS, Infosys, and Accenture have long played a role in GCC operations, but they are now deepening their focus on setup and transformation.

2. Big Four Consulting Firms: Deloitte, EY, PwC, and KPMG have expanded beyond advisory services to offer managed services, which is integral in structuring GCC models.

3. Specialist GCC Enablers: Niche firms such as ANSR focus exclusively on GCC setups, leveraging deep local expertise to ensure rapid deployment.

Strategic partnerships are reshaping this ecosystem. Accenture’s recent $170 million investment in ANSR signals a wave of consolidation, while alliances between consulting firms and real estate developers are redefining how enterprises approach site selection and talent acquisition.

The future of GCCs will be defined by a deeper integration of digital capabilities, evolving business models, and strategic collaborations between enterprises and providers. Several key trends will shape this space:

1. Hybrid Operating Models: Enterprises are likely to adopt hybrid models that blend elements of BOT and Assisted Virtual Models. This will allow them to maintain operational flexibility while ensuring a strong provider-backed foundation.

2. AI and Automation-Led Transformation: GCCs will become the driving force behind enterprise-wide digital transformation, leveraging AI, machine learning, and hyper-automation. Providers will play an increasingly significant role in developing, implementing, and scaling these solutions across global markets.

3. Geographic Expansion: While India remains the dominant player, enterprises are looking at complementing Indian GCCs with secondary hubs in Vietnam, Eastern Europe, and Latin America. Providers with multi-region capabilities will have a distinct advantage in this evolving landscape.

4. Greater Focus on ESG and Compliance: As regulatory frameworks tighten across industries, GCCs will be expected to integrate environmental, social, and governance (ESG) principles into their operations. Providers with expertise in compliance, sustainability, and risk management will become essential partners.

5. Talent Wars and Upskilling: With demand for highly skilled professionals outstripping supply, enterprises and providers will need to invest heavily in talent development. Upskilling initiatives, collaborations with Indian universities, and industry-academia partnerships will be critical to sustaining long-term growth.

In essence, the relationship between enterprises and providers is shifting from a transactional, service-based model to a strategic partnership. Providers are no longer just enablers but co-creators of value, shaping the future of GCCs as engines of innovation and transformation.

India’s Policy Support

India’s policymakers have recognised the strategic importance of GCCs and have introduced several initiatives to support their expansion:

1. Tax Incentives & Ease of Doing Business: The Indian government has streamlined regulatory approvals for foreign investments in the GCC space, reducing red tape and offering tax incentives under the Special Economic Zones (SEZ) policy. The extension of lower corporate tax rates for new investments is also expected to drive further GCC expansion.

2. Infrastructure Development: The creation of dedicated IT and business parks, such as the Hyderabad Knowledge City and Bangalore’s IT corridor, has provided world-class infrastructure tailored to GCC operations. Enhanced digital connectivity and data center investments further strengthen India’s attractiveness.

3. Skill Development Initiatives: Programs like the National Skill Development Corporation (NSDC) and partnerships with universities aim to upskill the workforce in emerging areas such as AI, cybersecurity, and cloud computing—critical functions for next-generation GCCs.

4. Data Protection and Compliance: India’s evolving regulatory landscape, including the Digital Personal Data Protection Act, is aligning more closely with global compliance standards. This gives multinational companies confidence in setting up advanced operations in India.

Beyond the Hype

For all its promise, the future of India’s GCC ecosystem is not without challenges. Rising real estate costs in key metros, increased competition from Southeast Asia, and evolving regulatory landscapes pose potential risks. However, India’s structural advantages—abundant talent, strong digital infrastructure, and a maturing startup ecosystem—offer compelling reasons for continued dominance.

The next frontier for GCCs in India will likely be defined by hybrid models, combining traditional setups with virtual and decentralised workforces. Enterprises are also expected to double down on AI-driven automation, further integrating their Indian operations into global decision-making frameworks.

In short, India’s GCC story is no longer just about cost savings. It is about strategic value creation on a global scale. And in this race, the winners will be those who can seamlessly integrate talent, technology, and transformation at scale.