The Rise of Global Capability Centres (GCCs) in India: Growth, Trends, and Future Outlook
- Swapnil
- Feb 26
- 3 min read
"The future belongs to those who prepare for it today." — Malcolm X
India has emerged as a powerhouse for Global Capability Centres (GCCs), attracting multinational corporations (MNCs) seeking cost-efficient and high-quality talent for their global operations. From being simple back-office support units, GCCs have evolved into strategic hubs driving innovation, digital transformation, AI-powered solutions, and custom software development for enterprises worldwide.
Growth Trajectory and Market Expansion
Current Landscape
India is now home to approximately 1,700 GCCs, generating $64.6 billion in export revenue and employing over 1.9 million professionals as of FY 2024. The sector has experienced a 24% increase in the number of GCCs over the last few years, with 24 centres now surpassing the $1 billion revenue mark. (Economic Times)
Future Projections
By 2030, India is expected to host 2,100–2,200 GCCs, with total employment projected to reach 2.5–2.8 million. The market size is forecasted to expand to $99–$105 billion. (EY Report)
Key Drivers of GCC Growth in India
1. Skilled Talent Pool
India boasts a vast, English-speaking workforce with expertise in STEM fields. This talent base makes it an attractive destination for MNCs looking to establish GCCs that focus on AI, software development, CRM, ERP, data analytics, and web application development.
2. Cost Efficiency
India offers a significant cost advantage over Western markets in terms of salaries, infrastructure, and operational expenses. According to industry estimates, setting up a GCC in India can be 40–50% cheaper than in the US or Europe.
3. Government Support & Policy Incentives
Initiatives such as "Make in India" and state-level tax incentives have accelerated foreign investment in the GCC sector. Karnataka, for example, aims to double its GCC count to 1,000 by 2029, generating 350,000 new jobs in the process. (Reuters)
4. Sectoral Diversity
GCCs in India are no longer limited to IT and BPO services. The financial services, healthcare, automotive, and retail industries are also establishing advanced R&D, analytics, and innovation centres in India, focusing on custom software development and AI-driven solutions.
Key Statistics: India's GCC Sector
Metric | Current (2024) | Projected (2030) |
Number of GCCs | 1,700 | 2,100–2,200 |
Total Market Size (USD) | $64.6 billion | $99–$105 billion |
Workforce Employed | 1.9 million | 2.5–2.8 million |
GCCs Crossing $1 Billion Revenue | 24 | Expected to double |
Recent Corporate Investments
Several global firms have announced major expansions of their GCCs in India:
Final Thoughts
The rise of GCCs in India highlights the country’s role as a strategic business hub for MNCs. With a growing talent pool, cost efficiencies, and government support, India is poised to continue its dominance in the GCC landscape. As companies increasingly look to India for AI-driven innovation, web design, ERP solutions, and data analytics, the country’s GCC sector is set to reach new heights in the coming years.
India’s position as a global GCC leader is now well-established, making it a prime destination for businesses looking to scale operations efficiently while leveraging world-class talent and technological advancements.