The rapid proliferation of Global Capability Centres (GCCs) is fuelling India’s ascent as a global digital powerhouse. These strategic hubs, set up by multinational giants are driving innovation, artificial intelligence (AI) breakthroughs, and cutting-edge software development. From fintech and healthcare to manufacturing and retail, GCCs are transforming India’s tech landscape, making the country an indispensable force in the global digital economy. As corporations seek agile, high-impact solutions, India’s ability to deliver at scale and speed has turned it into the ‘ultimate destination’ for technology-led transformation.
According to JLL, the number of GCCs in India is expected to surpass 2,500 in the next 3-4 years, up from the current count of over 1,950. Of these, the number of billion-dollar GCCs has doubled from 12 to 24 over the past five years. Consulting firms predict continued growth in the GCC sector, driving value and job creation in the coming years. Fortune 500 companies, from Walmart to Germany’s Bosch, view India as a prime destination for hiring artificial intelligence specialists. Businesses are increasingly relying on Indian talent for advanced engineering and research, reflecting the country’s growing expertise in complex technological domains.
What’s Driving India’s Rise as a GCC Hub
Unmatched Talent Pool: India is home to one of the largest pools of highly skilled professionals, particularly in software development, artificial intelligence, cybersecurity, and data analytics. With millions of engineers and IT professionals graduating from premier institutions each year, India provides an unmatched talent pipeline for GCCs looking to scale their operations. The India GCC Growth Outlook 2024 report projects that GCCs in India will generate around 4.5 lakh jobs this year, with the total workforce expected to reach 1 million by 2029. By 2030, the sector aims for a 50% expansion in its talent pool, driven largely by the rising demand for technology and finance roles.
Cost Efficiency with High-Quality Output: While labour costs in India remain significantly lower than in Western economies, the country has moved beyond being just a cost-effective destination. Indian companies are delivering high-value functions, including AI-driven research, cloud computing, and digital transformation solutions, providing GCCs with both affordability and quality.
Strong Digital and IT Infrastructure: India’s rapid progress in digital infrastructure development has fuelled the growth of GCCs. Government initiatives such as Digital India, Make in India, and the National AI Strategy have created a favourable environment for digital businesses. Technology firms are enabling high-speed internet connectivity, robust data centres, and cloud computing adoption to further reinforce India’s readiness for advanced technology-driven operations.
Pro-Business Regulatory Environment: The Indian government has actively introduced policies to attract foreign investments and streamline business operations. Reforms in FDI policies, simplified compliance structures, and data security regulations have made it easier for global enterprises to set up and expand GCCs in the country.
GCC Expansion beyond Traditional Tech Hubs
While Bengaluru has long been considered India’s Silicon Valley, GCCs are now expanding their footprint across multiple cities. As a result, India is expected to have multiple Silicon Valleys. Hyderabad, Pune, Mumbai, NCR, Chennai, and Ahmedabad have become thriving centres for technology innovation and R&D. Of these, Ahmedabad and Hyderabad, in particular, are emerging as India’s next Silicon Valley, attracting major global corporations due to their robust and cutting-edge infrastructure, policy incentives, and highly skilled talent base. These cities are seeing exponential growth in high-tech campuses, world-class office spaces and innovation hubs, making them ideal destinations for next-gen GCC operations.
Additionally, GCCs are now venturing into Tier 2 cities such as Mysuru and Coimbatore and smaller towns, tapping into an expanding talent pool and leveraging lower operational costs. According to Deloitte, companies can achieve approximately 30% savings on talent costs and up to 50% on real estate expenses while operating in these cities. This shift also leads to regional economic growth and new innovation corridors beyond traditional metro hubs.
ICT Firms Powering GCC Growth
Information and Communications Technology (ICT) companies play a crucial role in the success of GCCs by providing the digital backbone that supports seamless global operations. From advanced cloud computing and cybersecurity solutions to AI-driven automation and data analytics, these firms enable GCCs to drive efficiency, innovation, and scalability. They help establish high-speed connectivity, enhance enterprise security, and develop cutting-edge software solutions that power digital transformation across industries. As GCCs expand into Tier 2 cities and beyond, ICT firms will be instrumental in building the necessary infrastructure, ensuring seamless integration with global networks, and building a robust ecosystem to accelerate next-generation technology development.
India: The Next Digital Powerhouse
With the exponential growth of GCCs, India is well on its way to becoming the next digital powerhouse. The combination of a vast talent pool, a thriving innovation ecosystem, and an enabling business environment has positioned the country as the epicentre of technological advancements. As these centres continue to expand, India will not only shape the future of global digital services but also solidify its position as a key driver of the world’s technology evolution.
The article has been written by Pinkesh Kotecha, Managing Director and Chairman, Ishan Technologies
