India’s booming Global Capability Centre (GCC) ecosystem is redefining the country’s economic and employment landscape. With strong policy backing, skilled talent, and cost advantages, GCCs are transforming from offshore back offices to innovation powerhouses, generating millions of jobs, boosting GDP, and expanding beyond metros into Tier II and Tier III cities.
A Strategic Shift in Global Business Operations
Global Capability Centres (GCCs) are redefining India’s role in global business. What started as back-office operations in the 1990s has evolved into innovation-driven centres leading digital transformation, R&D, and global decision-making. “India is the preferred centre for GCCs,” said Union Commerce Minister Piyush Goyal, citing the country’s expanding talent pool and global influence.
India now hosts over 1,800 GCCs, employing 2.1 million professionals and contributing more than 1.5% to the national GDP. This number is projected to grow rapidly, with 2 million new jobs expected over the next five years across emerging tech roles like AI, cybersecurity, and data science.
Tier II Cities Join the Revolution
While cities like Bengaluru and Hyderabad remain GCC hubs, a new wave of expansion targets Tier II and III cities. “We’re already seeing this shift,” said Siemens Technology’s CEO, Pankaj Vyas. Cities such as Coimbatore, Indore, Jaipur, and Madurai attract firms thanks to lower costs and a growing talent base.
Companies like Cognizant and Infinx Healthcare have opened delivery centres in Gandhinagar and Madurai. According to Nasscom-Zinnov, 7% of GCCs now operate in Tier II/III cities, up from 5% in FY19—a clear sign of decentralised growth.
Skilling Challenges in a Fast-Moving Market
Despite abundant graduates, employability remains low, just 42.6%, per the Mercer-Mettl India Graduate Skill Index 2025. “To mitigate risks from automation, rapid reskilling will be essential,” said Milind Shah, MD, Randstad Digital. Employers are demanding technical skills and soft skills like communication and creative thinking.
Tier II and III cities are key to inclusive growth, but skilling gaps must be addressed. Experts suggest co-developing curricula with universities, upgrading infrastructure, and fostering GCC-academia collaboration to build a future-ready workforce.
Office Space Surge Reflects Demand
The growth in GCCs is also reshaping India’s commercial real estate. According to ANAROCK Research, GCCs accounted for 37% of the 141 million sq ft of office space leased in 2023-24. Bengaluru led with 24 million sq ft, followed by Hyderabad and Chennai.
Peush Jain of ANAROCK notes that the Union Budget 2025-26 further supports this expansion by introducing a national framework to attract GCCs and fuel growth in emerging cities.
Beyond Tech: Sectoral Expansion and Innovation
While IT and BFSI dominate, sectors like healthcare, manufacturing, retail, and transportation are ramping up their GCC presence. “For fintech players, India is not just a development hub—it’s a strategic location,” said Gurjodhpal Singh, CEO of Tide.
Over 95 healthcare GCCs, 200+ BFSI centres, and companies like Carl Zeiss, Sanofi, and BlackRock are investing heavily. Sanofi alone is committing €400 million in its Hyderabad hub by 2025.
Challenges and the Road Ahead
As the GCC ecosystem matures, new challenges are surfacing—attrition, regulatory compliance, and cybersecurity top the list. A CIEL HR study found 52% of GCC employees are actively job-hunting, while 73% of organisations cite security intelligence as a significant priority.
India must streamline policies, enhance digital infrastructure, and align education with industry needs to remain competitive. “We must shift from a cost to value model,” said Siemens’ Vyas, “driving innovation, not just operations.”
With the right policies, infrastructure, and skilling frameworks, India’s GCCs are not just supporting global companies—they’re shaping the future of work.
Leave a Comment
You must be logged in to post a comment.