The future of Global Capability Centers (GCCs) in India

Global Capability Centers (GCCs) are offshore facilities set up by multinational companies in various countries to handle processes like customer service, research and development, IT services and more. GCCs are an integral part of a parent organization, helping gain access to a diverse talent pool and achieve cost-effectiveness. They contribute to the global economy by reducing the cost of operations, boosting productivity, streamlining efficiency, creating various job opportunities and technological innovations.

India, with its extensive IT talent pool, supportive policies and lower costs, is a popular destination for multinational companies to set up their GCCs. Currently, India houses approximately half of all global GCCs (1750) and is expected to house 2,550 GCCs with a $110 billion market value by 2030. 

Here are some factors that make India the leading hub for GCCs:
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Large workforce and diverse expertise

India’s large population of diverse job seekers willing to upskill and reskill prove advantageous for GCC growth. Approximately 1.3 million employees work for India’s GCCs, and over 60% of graduates from the top STEM universities choose to work for GCCs.

Favorable ecosystem

Over the past few decades, India has seen massive digital growth -- with cities like Bangalore, Pune, Chennai and Hyderabad providing a strong technological infrastructure. The geographical advantage of India allows easy global collaboration with its strategic location and flexible time zone difference.

Operational efficiency and cost savings

India provides reliable and cost-effective resources, leading to cost savings for companies. The government offers a flexible business environment with added incentives like tax benefits, streamlined regulatory processes and infrastructure support. The availability of skilled labor and advanced technological infrastructure enhances operational efficiency, and the competitive cost structure helps companies achieve significant savings compared to other global markets. 


The future of GCCs in India is bright. With sustained development and expansion into Tier-2 cities, retention and the growth of top talent, continued innovation and lower regulatory and compliance hurdles, GCCs have the potential to offer great value to their parent companies for the long haul.

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