A Global Capability Center (GCC) is a wholly-owned, offshore unit of a multinational company that performs strategic, technical, and operational functions like R&D, IT, finance, and engineering. The parent company maintains full control over the GCC, which is a strategic extension of the organization, often established in countries with access to skilled talent and favourable operating costs. Over time, GCCs have evolved from handling basic back-office tasks to becoming centers of innovation and value creation. 

Bharat is rapidly becoming a global hub for Global Capability Centres (GCCs), evolving from cost-saving back offices to centers of innovation and strategic operations. This is driven by a large, skilled STEM (science, technology, engineering, and mathematics) workforce, a strong digital infrastructure, cost advantages, and government support. Companies are increasingly shifting their GCCs to Bharat for AI, R&D, and digital talent, viewing it as a strategic engine for innovation. More importantly Bharat’s time zone provides an advantage for “always-on” operations as strategic location. 

Growth and economic impact

• The number of GCCs in Bharat is projected to grow significantly, from over 1,700 in FY24 to an estimated 2,200 by FY30.
• These centers are projected to employ up to 2.6 million professionals.
• The GCC ecosystem is a major contributor to Bharat’s economy, contributing upwards of $46 billion annually. 

Emerging and core cities

• Core hubs: Bengaluru, Hyderabad, Pune, Chennai, Mumbai, and Delhi NCR are the main centers for GCCs.
• Growing hubs: Cities like Vizag, Ahmedabad, Indore, Thiruvananthapuram, and Kochi are also emerging as important GCC locations. 

Bharat’s rise as a powerhouse for Global Capability Centers (GCCs) has been a result of sustained, strategic progress rather than a singular leap. It is the cumulative outcome of decades of growth driven by a highly skilled talent pool, robust infrastructure, a culture of innovation, and deliberate policy planning.

From being regarded as a low-cost outsourcing hub, GCCs in Bharat have evolved significantly—Bharat is now an active player in digital transformation, empowering the business growth of companies globally. With more than 1,800 GCCs operating, Bharat now employs over 2.16 million people in the sector. This reflects the country’s incredible human capital and capability to provide high-value Digital and BPM (Business Process Management) services through GCCs.

This shift has changed Bharat—not just as a place for support services, but as a key partner for research, product development, and leadership. The transformation of Bharat from being a mere back-office service provider to a global digital hub has created the right platform for the rapid expansion of GCCs. In the previous five years, more than 400 new centres and over 1,100 new units have been established In Bharat and this is an unprecedented scale. 

GCCs also seek employees not only for support service positions but for higher-level roles such as:

• AI & Automation
• Cybersecurity
• Data Science
• Product Management

Undoubtedly, Bharat offers the required support with its skilled manpower in these areas.

Bharat’s geographical location is also an advantage. Situated between the US, Europe, and Asia Pacific, Bharat enables round-the-clock operations, making it ideal for “follow the sun” service models—ensuring rapid decisions, prompt attention, and seamless continuity.

Our data protection laws and the digital platform like- India Stack ensure that Bharat is safe, stable, and attractive place for long-term investments in GCCs. India Stack is a set of open APIs and digital public goods that form Bharat’s public digital infrastructure to enable government, businesses, and developers to create innovative solutions. It facilitates presence-less, paperless, and cashless service delivery by providing digital identity (Aadhaar), digital signatures (eSign), secure document storage (DigiLocker), and instant payments (UPI).

GCCs in Bharat have moved from Cost Centres to Innovation Engines

GCCs in Bharat have grown beyond back-office tasks. Today, they lead core business functions:

• 53% of GCCs focus on transformation, up from 18% a decade ago
• 44% have become portfolio hubs
• 6,500+ global roles are based in Bharat, expected to grow to 30,000+ by 2030

Bharat’s GCCs are now innovation labs where ideas are built, tested, and scaled. 

Sector-Specific Centres of Excellence

Bharat’s economic development is often regionally concentrated:

• Bengaluru: IT and Digital
• Hyderabad: BFSI and Pharmaceuticals
• Pune: Manufacturing and Engineering (now expanding in BFSI)

Almost 90% of GCCs operate as multi-functional centres, supporting:

• Technology
• Operations
• Product Engineering

Economic Impact: How GCCs Boost Bharat’s Growth

Bharat’s GCC economy is valued at $68 billion USD and is projected to projected to rise to between $154 and $199 billion by 2030 by FY 2030.

• 2.16 million people are directly employed with a job creation potential of 20–25 million roles by the end of the decade, including 4–5 million direct positions.
• Support employment multiplies this by 2–3x
• GCCs boost urbanization, construction, digital skills, and Tier 2 city development

ER&D (Engineering Research and Development) GCCs are growing 1.3x faster than the overall GCC segment, indicating a shift toward more complex, high-value work.

Bharat is also becoming a centre for AI transformation, with:

• 120,000+ AI/ML professionals
• 185+ dedicated AI/ML CoEs
• Rapid growth in full-stack development expertise

Bharat is capable in scaling complex, tech-heavy operations, especially in AI and R&D.

Emerging Opportunities: Beyond the Obvious

Bharat’s GCCs are expanding into new domains, including:

• Generative AI
• Clean energy
• Healthcare analytics
• Advanced manufacturing

Accelerating Technology adoption in the below areas mentioned provides greater opportunities and scope for GCCs in Bharat.

• 44% use Hybrid Cloud
• 40% use Advanced Analytics
• 38% rely on SaaS platforms (Software as a Service. It is a cloud-based software delivery model where a provider hosts applications and makes them available to customers over the internet, often through a subscription, eliminating the need for users to install or manage the software themselves.)

80%+ of top global companies are renegotiating BPM (Business Process Management) contracts—shifting from people and process to data insights, outcomes, and value.

Healthy competition among the States in Bharat 

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 Bharat’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. Vizag is proving to be a strong contender in the race to be one of the leading centres for GCC. The Sattva Group is investing ₹1,500 crore in a large integrated facility in the Madhurawada IT cluster, Vizag. In a major push to bolster the digital economy and attract global investments, the Government of Andhra Pradesh has signed a landmark Memorandum of Understanding (MoU) with ANSR, a global leader in establishing and scaling Global Capability Centres (GCCs). 

Navigating Challenges to Sustain GCC Leadership

Despite strong momentum, Bharat must address several challenges:

Talent Attrition and Wage Inflation

• High turnover and salary hikes in niche tech roles
• Raising operational costs and talent instability

Regulatory Hurdles in Cross-Border Data Flows

• Data localization and compliance under laws like GDPR (General Data Protection Regulation measures formed by the European union). 
• Especially impacts BFSI and healthcare sectors

Rising Competition from Emerging Destinations

• Vietnam, UAE, and Poland offer:
  • Investor-friendly policies
  • Faster clearances
  • Lower costs

Infrastructure Gaps in Tier 2/3 Cities which is the weakest link in Bharat’s GCC value chain 

• Lack of urban amenities and transport
• Limits scalability and investment attractiveness

Strategic interventions in the above areas are essential to retain Bharat’s GCC edge. 

At the GCC Business Summit in September, 2025 held in Vizag CII suggested roadmap for Bharat’s next phase of global leadership in knowledge industries, which include the following key initiatives. 

First, a legislatively backed National GCC Council should be established to guide strategy, ensure cross-ministry coordination and centre–state alignment, facilitate investments in talent, infrastructure, and innovation, and function as a “touchless lifecycle manager” for global investors. 

Second, next-generation Digital Economic Zones (DEZs) should be created to integrate physical and digital infrastructure, harmonise regulations, and provide world-class facilities and incentives. These DEZs would also serve as plug-and-play models for GCCs in emerging areas such as artificial intelligence, machine learning, space technology, logistics, smart cities, and quantum analytics.

Third, the framework proposes deepening industry–academia partnerships to align education with GCC skill needs, while establishing Centres of Excellence in domains like AI, cybersecurity, engineering R&D, and product innovation. Leadership pipelines must also be developed in Tier-2 and Tier-3 cities to avoid overconcentration in metros, supported by incentives for reskilling and upskilling through tax benefits and co-investment schemes.

Fourth, national GCC growth should be integrated with initiatives such as Smart Cities and Gati Shakti to promote Tier-2 and Tier-3 cities as alternative hubs. This requires addressing gaps in transport, utilities, and Grade-A office infrastructure, thereby ensuring balanced and inclusive regional growth.

Fifth, GCCs should be encouraged to act as R&D powerhouses for global companies, supported by corporate venture capital arms and innovation linkages with start-ups. Incentives for ESG-led innovation—ranging from green infrastructure to responsible AI adoption—should be built in, ensuring alignment with Bharat’s net-zero commitments and sustainability goals.

Finally, the framework calls for clear performance metrics for job creation, innovation, exports, and regional spread, with feedback loops for continuous policy improvement and adaptive strategies to respond to global market and technology shifts.

Let us hope that the Union Government in coordination with the States will prepare a roadmap in the lines suggested by CII and also work towards its effective implementation in the near future.