In Brief

The UK’s Gateway to Resilience: India’s GCC 3.0 report provides an in-depth analysis of how UK enterprises can address macroeconomic pressures, digital skill shortages, and supply chain vulnerabilities through Global Capability Centers (GCCs) in India. The study explains the evolution of GCCs from cost-saving units to GCC 3.0 models—innovation-led hubs driving R&D, AI, digital transformation, and resilience.

Overview

This report examines the growing strategic importance of India as a destination for Global Capability Centers (GCCs) and its role in strengthening the competitiveness of UK enterprises. Key sections of the report cover:

• The UK business environment in 2025, marked by economic slowdown, inflationary pressures, and regulatory challenges.
• India’s position as a global leader in talent, technology, and innovation ecosystems, projected to contribute $100 billion to GDP by 2030 through GCCs.
• The shift from traditional outsourcing to GCC 3.0 models, where Indian centers drive advanced analytics, cybersecurity, automation, and product development.
• Industry-specific insights into how UK companies in banking, pharmaceuticals, energy, aerospace, telecom, and consumer goods are leveraging India’s GCC advantage.
• A case study on Lloyds Banking Group, detailing its transition from offshore BPO to a full-fledged GCC 3.0 model in Hyderabad, supporting digital transformation and global competitiveness.

The report concludes with actionable recommendations for UK enterprises to establish or expand their GCCs in India using BOT, COPO, and Flexi models, enabling resilience, cost optimization, and innovation.

Key Highlights

• UK Business Landscape 2025: GDP growth slowing to 1.0% by 2026, rising debt, and persistent inflationary pressures.
• Talent Gaps in the UK: 75% of IT firms face challenges in sourcing skilled talent; India produces 1.5 million STEM graduates annually.
• India’s GCC Market: 1,800+ GCCs, employing 2.5 million professionals, contributing 1% of India’s GDP, and expected to reach $100 billion by 2030.
• GCC 3.0 Evolution: Transition from back-office cost centers to innovation-driven hubs delivering AI, cybersecurity, R&D, and advanced product engineering.
• UK Industries in India: HSBC, NatWest, Standard Chartered, Barclays, AstraZeneca, BP, Rolls-Royce, Vodafone, Unilever, Deloitte, and others operating large GCCs in India.
• Case Study – Lloyds Banking Group: Investment of £4 billion with a new technology hub in Hyderabad employing 4,000 engineers, focusing on AI, cloud, and digital banking.
• Strategic Recommendations:
  • Build GCCs in India as digital backbones for AI, automation, and data analytics.
  • Establish Centers of Excellence (CoEs) in critical domains like cybersecurity and cloud.
  • Use India’s COPO + Digital Twin models for efficient and scalable GCC setup.
  • Diversify global operations through India to mitigate geopolitical and supply chain risks.