Global Capability Centres (GCCs) in India have evolved dramatically over the past few decades, transitioning from cost-driven back-office hubs, to strategic powerhouses at the forefront of global innovation, particularly in artificial intelligence (AI).
Today, India is leading the charge in this space with over 1,700 GCCs, driving core functions such as R&D, engineering and product development, while helping multinational corporations streamline operations.
Unlike IT vendors, the GCCs operate as a subsidiary of a traditional company doing work only for that company, leveraging expertise in AI, cloud computing, and data analytic.
Reports estimate the GGC revenue to grow by 14 per cent in 2024-25, contributing to 4.5 per cent of India’s GDP and generating over USD 150 billion in IT and IT services export.
India is also poised to capture 40 per cent of the USD 210 billion expected market opportunities with over 35 per cent of Fortune 500 companies looking to offshore a significant portion of their SG&A functions (such as HR, finance, procurement, marketing, and sales support) to GCCs.
THE BACKSTORY
GCCs in India had a humble beginning in the 1990s as cost-effective solutions. India has since built on its prior status as the global ‘BPO Capital’.
Initially focused on IT support and back-office tasks, GCCs expanded in the early 2000s when India became a hub for Business Process Outsourcing (BPO), capitalizing on its affordable labour and English-speaking workforce. By 2012, Nasscom reported that the BPO sector generated nearly USD 28 billion and employed millions in customer support and back-office roles, paving the way for India’s shift to the more advanced, value-driven GCC model.
The transition from delivery-oriented operations to strategic innovation hubs began by the mid-2010s with BFSI, retail, telecom, and manufacturing driving the demand.
The reason: Rapid adoption of AI, cloud, and IoT technologies by these sectors.
FACTORS & DRIVERS
India has emerged as a hub for AI innovation and value creation due to a combination of strategic, economic, and technological advantages. Below are the key reasons:
Vast and Skilled Talent Pool: India’s abundant digital skills have emerged as the strategic differentiator, fuelling the rise of GCCs. The country’s robust education system, producing over 2.25 million STEM graduates annually, with more than 200,000 professionals skilled in AI and data science, ensures a steady supply of qualified professionals. This talent pool is not only large but also diverse, enabling innovative problem-solving for global markets.
A recent NASSCOM-Deloitte report projects that the Indian AI talent pool will grow from 6,00,000-6,50,000 engineers to over 1.25 million by 2027.
Cost Optimisation & Efficiency: The cost of operating a tech company here is significantly lower than in countries like the US and UK. The GCCs in India are delivering over 50 per cent net cost optimization to their parent enterprises with 50-70 per cent lower average salaries for comparable roles. This cost-quality ratio allows GCCs to access high-calibre AI talent and infrastructure at a fraction of the cost, making India an attractive destination for AI R&D centres.
GCCs in India are now seen as strategic investments.
Robust Digital Infrastructure & Ecosystem: Over 1,000 AI startups are concentrated in hubs like Bengaluru, Hyderabad, and Pune, driving innovation across sectors like healthcare, fintech, and logistics. This vibrant ecosystem along with advanced infrastructure and connectivity supports GCC operations and fosters collaboration with startups, and academic institutions for innovation.
In 2024, 86 per cent of GCCs were actively engaged in AI and Machine Learning projects, up from 65 per cent in 2019.
Strong Investment and Government Support: In Budget 2025, the government announced a national framework to guide states in promoting GCCs in tier II cities by enhancing talent availability, infrastructure, and industry collaboration. This is in addition to the incentives being provided for setting up Special Economic Zones (SEZs) with tax benefits, and implementing policies to promote innovation and R&D.
Karnataka recently released the state’s first Global Capability Centre (GCC) Policy 2024-29, targeting to establish 500 GCCs initially and achieving the target of 1,000 by 2029, cementing India’s position as a global tech hub.
Madhya Pradesh, Uttar Pradesh, Tamil Nadu and Andhra Pradesh are also racing to attract multinational companies to establish GCCs.
Shift from Execution Arm to Value Creation Hub: GCCs in India have transitioned from mere back-office operations to strategic assets for multinational corporations (MNCs). These centres now play a pivotal role in driving research and development (R&D), end-to-end product ownership, and global leadership roles. This shift attracts MNCs to leverage India’s capabilities for a competitive edge.
The EY India GCC Pulse Survey 2024 reveals that the adoption of AI within GCCs in India is accelerating, with nearly 70 per cent driving digital transformation and AI innovation for their parent organisations. They focus on high-impact areas like AI, data analytics, and cloud computing.
The sector is projected to grow to USD 110 billion by 2030, with AI as a key driver. Cities like Bengaluru, Hyderabad, and Pune are at the forefront, transforming India into a powerhouse for AI-driven solutions.
Strategic Enabler in Business Innovation: The centres have transformed into innovation hubs that drive R&D, integrate advanced technologies, and align with global sustainability goals. They are central to corporate strategies and align with parent companies’ visions, driving end-to-end value creation.
These are now seen as “transformation hubs” and “centres of excellence” that shape global strategies. For instance, Shell’s Bengaluru GCC supports global sustainability goals through digital solutions for supply chain efficiency.
THE SCRIPT GETS BIGGER
These technology and operations arms of MNCs in India are one of the biggest stories in 2025 and it is worth USD 151 billion.
The number of such offshore units, surpassing the USD one billion export revenue mark in financial year 2023-24, has doubled from 12 to 24 in the five years leading to financial year 2024, according to research by Pune-based consultancy Wizmatic.
India now hosts over 17,00 GCCs across Bangalore, Hyderabad, Chennai, Mumbai, Delhi NCR and Pune. This number is expected to reach 2,550 with the market size of the centres touching USD 110 billion by 2030, according to an HSBC report. A Nasscom-KPMG report, on the other hand, estimates India to have 1,900 GCCs, generating USD 60 billion in revenue and employing two million people, by the end of this year.
According to the ANSR Q3 GCC report, India has the potential to accommodate over 32 per cent of Forbes 2000 enterprises. It is projected to host GCCs of more than 620 such companies by 2030. Currently, 825 dedicated offshore units of over 450 of such companies are operating here and employing close to 1.3 million professionals.
The report further notes that not only large corporations but also mid-market players and smaller enterprises are looking to set up facilities here to leverage the country’s cost advantage, skilled workforce with expertise in emerging technologies and a stable business environment.
The numbers back these data. Walmart, Citi Global Services India, Salesforce, AMD, Gentell, Siemens Healthineers and Hitachi Energy are all scaling up aggressively. Even Airbnb, the online marketplace for home stays and vacation rentals, and Cardinal Health, the USD 162-billion US healthcare distribution company, have recently set up high-value GCCCs here.
Companies are also increasingly moving beyond traditional hubs like Bengaluru, Hyderabad, and Delhi NCR to tier-2 cities such as Coimbatore, Indore, and Jaipur, driven by cost-effective talent and supportive state policies.
Ahmedabad, Visakhapatnam, Trivandrum, Kolkata, Bhubaneswar, and Coimbatore have also emerged as preferred cities for GCCs.
The Ministry of Electronics and Information Technology (MeitY) is working on a comprehensive policy framework for expansion of GCCs into smaller towns and cities, by offering tax breaks, regulatory clarity, and incentives for specialised centres.
Conclusion
The journey of GCCs in India reflects the evolution of yet another growth story in the areas of technology, driven by a combination of a big pool of skilled workforce, cost advantages, a startup ecosystem, advanced tech-infrastructure, and a favourable investment and policy support. While challenges remain, the convergence of AI expertise, R&D capabilities, and global trust positions these centres at the forefront of the future of AI on a global stage. The GCCs are not just supporting global enterprises but also redefining how the world innovates.