Global Capability Centres: India’s Pivotal Role in Driving Global Transformation

What started as a cost-saving strategy for multinational corporations has evolved into a sophisticated engine for global innovation and transformation. Global Capability Centres (GCCs) have become a cornerstone of India’s economic and technological landscape, transcending their initial role as mere support hubs. Today, with over 1,800 GCCs spread across the country, India stands as an undisputed leader in hosting these centres, enabling organisations to drive efficiency, build capabilities, and reimagine their future.

The journey of GCCs in India began humbly in the early 2000s, when global corporations sought to establish captive centres in the country. The allure of India’s low-cost talent pool, coupled with affordable real estate, catalysed the establishment of centres focused on back-office operations, IT support, and business process outsourcing (BPO). In their infancy, these centres handled routine activities like data processing, document management, and customer service.

However, as organisations realised the untapped potential of India’s talent ecosystem, these centres evolved. Captive units transformed into Global In-house Centres (GICs) and later matured into GCCs. This transformation was driven by a shift in focus—from operational efficiencies to high-value outcomes like digital innovation, end-to-end product lifecycle ownership, and research and development (R&D).

Today, GCCs in India are hubs of digital transformation, leveraging cutting-edge technologies such as artificial intelligence, machine learning, blockchain, and advanced analytics. They serve not only as operational extensions of their parent organisations but as strategic partners that drive innovation and growth.

The numbers speak volumes about India’s dominance in the GCC ecosystem. Over the last two years alone, more than 100 GCCs have entered the country, bringing the total count to 1,800 across 1,400 global firms. The top seven cities—Bengaluru, Hyderabad, Chennai, Pune, Mumbai, Delhi-NCR, and Kolkata—house over 240 million square feet of Grade A office space occupied by GCCs.

Bengaluru, often referred to as India’s Silicon Valley, accounts for a staggering 42% of the space occupied by GCCs. Meanwhile, Hyderabad and Chennai, with their robust infrastructure and thriving talent pools, have emerged as formidable contenders, together with Bengaluru leasing three-fourths of the GCC-occupied space in the last 18 months. This shift underscores India’s growing appeal as a global innovation powerhouse, where GCCs are increasingly seen as transformation hubs rather than mere cost centres.

The rise of GCCs in India is no coincidence—it is a testament to the country’s ability to meet the diverse and evolving needs of global corporations.

1. 1. Talent Pool Depth and Diversity: India’s workforce is young, dynamic, and skilled across a wide spectrum of domains, from engineering and IT to finance and healthcare. The focus on high-value activities like product conceptualisation, data science, and R&D has allowed GCCs to unlock new dimensions of value.
   2. Cost-Effective Operations: While cost remains a consideration, the emphasis has shifted towards the value derived from India’s high-quality talent and its ability to drive innovation at scale.
   3. Expanding Technological Capabilities: GCCs in India are at the forefront of adopting new-age technologies. Their contributions in areas such as AI, blockchain, and advanced analytics are helping parent organisations stay competitive in an ever-changing global marketplace.
   4. Strategic Autonomy: Increasingly, headquarters are entrusting GCCs in India with greater autonomy, granting them end-to-end ownership of critical business operations. This includes not just technological functions but also business-critical operations, resulting in elevated accountability and innovation.

The GCC story in India is far from over. The next phase of growth will see these centres take on even greater strategic importance. Already, GCCs are venturing into uncharted territories, managing high-value, business-critical operations that integrate both business and technology dimensions.

Centres of Excellence (CoEs) in India are increasingly being established to manage multifunctional portfolios, from engineering R&D to IT and financial services. Moreover, global organisations are beginning to contract more senior, strategic roles to their Indian GCCs, underscoring their confidence in the country’s capabilities.

India’s rise as a global hub for GCCs is a remarkable tale of adaptation, resilience, and innovation. From their origins as cost-saving back-office units to their current role as transformation hubs, GCCs in India have fundamentally reshaped the way global corporations operate. As the demand for digital transformation, innovation, and strategic value creation grows, India’s GCCs are poised to play an even greater role in shaping the future of global business.

The journey of GCCs in India is not just a success story—it is a blueprint for how organizations can leverage talent, technology, and trust to drive enduring global impact.