India’s Global Capability Centers (GCCs) are no longer just offshore support units. They have become strategic hubs driving global innovation, decision-making, and product development, reflecting India’s rise as a center for talent and enterprise.
From modest beginnings focused on cost efficiency, the GCC ecosystem now stands as a key indicator of India’s economic transformation, demonstrating how the country is moving up the global value chain.
The Scale of the GCC Ecosystem
With over 1,800 GCCs, India hosts more than half of the world’s global capability centers, employing 1.9 million professionals, a number expected to exceed 3 million by 2030. The sector generates over $100 billion in annual revenue and has grown nearly 14% between FY23 and FY25, driven by a combination of digital talent, competitive economics, and a maturing innovation ecosystem.
Interestingly, GCC growth is no longer confined to metros. Tier-2 cities like Ahmedabad, Kochi, Indore, Coimbatore, and Jaipur are emerging as cost-effective, talent-rich alternatives. These cities offer 20–30% lower operating costs, improved infrastructure, and proactive state policies, expanding India’s GCC footprint beyond traditional hubs.
A Shift From Support to Strategy
The year 2025 marks a structural transformation in how multinationals view India. GCCs have moved beyond transactional work to anchor some of the world’s most advanced capabilities. Today, India-based centers lead initiatives in:
- Artificial Intelligence and Machine Learning
- Cloud, DevOps, and Cybersecurity
- Product and Platform Engineering
- Life Sciences, Digital Health, and Biotech
- Global Innovation and R&D mandates
This evolution from “cost arbitrage” to capability creation underscores India’s emerging role as a trusted innovation partner. The upcoming National Policy on GCCs promises to further accelerate high-value operations by offering clarity, stability, and long-term confidence for global enterprises.
Hyderabad Emerges as a Rising Star2025 has seen Hyderabad surpass Bengaluru as India’s hottest GCC destination, attracting 41 of the 85–95 new GCCs established this year. Its mix of infrastructure, governance, talent, and cost advantages has made it a magnet for multinational corporations.
Bengaluru retains its leadership in deep-tech and advanced R&D, but Hyderabad’s rise signals a more balanced and resilient national innovation ecosystem, reflecting the diversity and depth of India’s GCC landscape.
Trends Shaping 2025
Several trends define India’s GCC sector today:
- Value Over Cost: GCCs now influence global product roadmaps, AI strategies, and data initiatives, rather than simply executing tasks.
- Employment Momentum: The sector expects 425,000–450,000 new jobs in 2025, taking total employment above 2.1 million.
- Tier-2 City Growth: Smaller cities offer cost-effective, talent-rich alternatives for enterprises.
- Sector Diversification: BFSI, tech, life sciences, pharma, engineering, and automotive GCCs are scaling rapidly.
- Talent Premium: Demand for AI, cybersecurity, engineering, and cloud skills is reshaping hiring and leadership strategies.
- Regulatory Complexity Drives Tech: With 537+ regulatory obligations, GCCs are digitizing governance and risk management systems.
Mapping India’s GCC Hubs
Each city has carved a distinct capability identity:
- Bengaluru: Deep-tech, advanced R&D
- Hyderabad: Fastest-growing innovation hub
- Chennai: Automotive, industrial services, engineering
- Pune: BFSI and product engineering
- Delhi NCR: Technology, consulting, pharma
- Mumbai: Global finance, BFSI
This city-specific specialization makes India’s GCC ecosystem highly versatile and globally competitive.
The Multiplier Effect on Urban Economies
GCCs create ripple effects beyond direct employment. For every direct job:
- 1 indirect job emerges in telecom, facilities, security, and support services.
- Nearly 3 induced jobs appear through household consumption in retail, mobility, education, and housing.
This multiplier effect positions GCCs as engines of urban economic growth, fueling both employment and local consumption.
A Defining Decade Ahead
Looking forward, GCCs are poised to become the nerve centers of multinational operations. While the 2000s were dominated by India’s IT services boom, the coming decade will be defined by GCC-led innovation, digital transformation, and global capability building, firmly placing India on the global corporate map.
