By Aditya Jayaraman, Country Head – India, Hexaware
The first phase of Global Capability Centres (GCC 1.0) in India was defined by cost arbitrage—leveraging labour cost advantages to deliver operational efficiency and support functions for global enterprises. While this model established India as a reliable destination for business process outsourcing and transactional tasks, it often limited GCCs to support roles, with little ownership of core business outcomes or innovation.
As global business needs evolved, so did the expectations from GCCs. The emergence of GCC 2.0 marks a decisive shift from cost centres to value creators and innovation hubs. Today’s GCCs are no longer focused solely on efficiency; they are at the forefront of core product development, R&D, and digital transformation, driving strategic value for their parent organisations. This transition is powered by the convergence of deep domain expertise accrued over the years, advanced process architectures, and the rapid adoption of generative AI and digital technologies.
India’s Unique Position in the New GCC Era
India stands at the forefront of this evolution. Its unmatched talent density, potential to operationalise AI at enterprise scale, and proactive government policies create an environment where GCC 2.0 can thrive. This makes India the logical destination for global enterprises seeking to build future-ready centres.
India is already home to more than half of the world’s GCCs, a development that mirrors the country’s rise as a dependable, high-skill technology base. Gartner projects that India’s IT spending will cross $176 billion by 2026, while the Association of Chartered Certified Accountants (ACCA) estimates that GCCs already contribute around 2% to the country’s GDP. More than 1,700 centres employ 1.9 million professionals and generate $64.6 billion in revenue. By 2030, that number could approach 2,400 centres, employing nearly 2.8 million people and expanding the sector to $105 billion.
GCCs as Strategic Hubs and Centres of Excellence
For global enterprises, the rapid growth of India’s GCC industry signals a structural reorientation in how technology capabilities are built and sustained, with the focus shifting from mere functionality to strategic ownership. Mandates have moved beyond cost efficiency and process execution, as centres now define digital product roadmaps, build enterprise data and analytics strategy, architect cloud-native platforms, and shape global AI roadmaps.
Many GCCs also operate as Centres of Excellence, which serve as playgrounds for new ideas that, in turn, help set the direction for how parent organisations grow. This is particularly relevant in an era where companies need fast, iterative innovation backed by robust engineering depth.
Geographic Expansion and Policy Support
India’s GCC network is also broadening geographically. According to Nasscom’s Future of Work report, more than 50% of GCCs and product organizations are expanding to tier-2/3 cities to leverage the available talent and cost savings. The Union Budget 2025’s proposal to establish a National Framework to promote GCCs in smaller cities reinforces this shift.
Across India, state governments are moving quickly to position themselves as anchors for the next wave of GCC expansion, creating a policy environment that signals long-term commitment and readiness for high-value global work.
Karnataka has taken the lead with the country’s first dedicated GCC policy, offering everything from rental reimbursements to electricity duty waivers, while building innovation districts beyond capital city Bengaluru to widen the talent pool. Maharashtra and Uttar Pradesh have followed with their own targeted incentives—ranging from tax benefits and capital subsidies to plug-and-play infrastructure in emerging cities—so that GCCs can scale without the pressures of saturated metros.
States like Gujarat are leveraging hubs such as GIFT City to attract financial and technology centres with integrated regulatory and infrastructural support, whereas Telangana and Madhya Pradesh are strengthening their broader IT and R&D ecosystems to draw GCCs in advanced domains like AI, analytics, and engineering. Taken together, these state-led initiatives reflect a coordinated effort to build predictable policy environments, deepen talent pools, and accelerate setup timelines. For global firms, this translates into a clear message: India is not just open for GCC growth; it is actively reorganising its state-level architecture to make that growth frictionless and future-ready.
Sustainability and the Future of GCCs
The transformation of GCCs is also shaping how enterprises think about sustainability. With these centres sitting at the crossroads of digital transformation, automation, and operational efficiency, they are uniquely positioned to embed ESG considerations into core decision-making. The shift is already visible as GCCs modernise legacy systems, design energy-efficient architectures, and adopt green-certified campuses that run increasingly on renewable energy. Their influence is pushing ESG beyond a compliance lens and into the realm of long-term business strategy.
The Evolving Role of India’s IT Service Providers
As GCCs transition from support functions to innovation hubs, India’s IT service providers are also playing an increasingly strategic role in the ecosystem. Rather than being displaced, major IT services firms are becoming vital partners to GCCs—helping organisations establish GCCs, collaborating on large-scale transformation programs and modernisation initiatives, and providing niche expertise that complements the in-house capabilities of GCCs. This symbiotic relationship enables global enterprises to accelerate their digital journeys, with GCCs focusing on strategic ownership and innovation, while IT service providers deliver the scale, operational rigor, and specialised skills required for complex transformation. This unique, collaborative ecosystem is a key differentiator for India, combining the maturity of its IT services sector with the agility and innovation of next-generation GCCs.
Conclusion: India’s GCCs as Growth Engines
As global enterprises confront economic volatility and rapid technological acceleration, India’s GCCs will serve as both stabilisers and growth engines. Their rise marks a turning point: India is no longer contributing to global technology progress from the sidelines. It is increasingly shaping that trajectory.