The Evolving Landscape of GCCs in India: Trends and Prospects

Introduction

Global Capability Centers (GCCs) have become a cornerstone of India’s rapidly expanding technology and services landscape. Initially focused on basic operational tasks, GCCs in India have evolved into critical technology hubs that manage complex processes and drive global innovation. The growth of GCCs has been both swift and significant, positioning India as a key player in the global technology ecosystem. As we examine the current state of GCCs in India, it is clear that these centers are not merely cost-saving outposts; they are increasingly becoming transformational hubs for global companies.

Current State of GCCs in India

According to a recent NASSCOM report, there are close to 1,600 GCCs operating in India, generating an impressive $46 billion in revenue between 2015 and 2023 ^1. This evolution has seen Indian GCCs transition from handling basic back-office tasks to managing complex technologies and processes across various industries. By adopting industry best practices, such as agile methodologies and continuous improvement initiatives, GCCs have firmly established themselves as central to their parent organizations' global operations.

These centers are no longer limited to executing predefined tasks; they are now at the forefront of deploying specialized skills in cloud computing, artificial intelligence (AI), machine learning (ML), natural language processing (NLP), cybersecurity, and the Internet of Things (IoT). The strategic focus of these centers has expanded to support their headquarters and global operations by driving innovation, efficiency, and scalability.

GCCs as Transformational Hubs

The Indian GCC ecosystem has emerged as a sandbox for innovation, technology, and transformation for global enterprises. These centers have moved beyond engineering and are now venturing into new markets, managing value-added, business-critical operations, and accelerating global growth. GCCs are increasingly integrating business and technology, clearly demonstrating their understanding of both aspects.

The ANSR Quarterly GCC Report highlights that 80% of new GCCs are prioritizing AI and ML capabilities, underscoring their role as catalysts for technological advancement ^2. This shift reflects a broader trend where GCCs are no longer just support functions but are pivotal in driving organization-wide initiatives that shape the future of global businesses.

Adoption of Advanced Technologies

The rapid adoption of automation and AI, particularly Generative AI (GenAI), is a key focus area for GCCs. These centers leverage cutting-edge technologies to streamline processes, enhance decision-making, and drive innovation. With India’s robust IT infrastructure and skilled workforce, GCCs are ideally positioned to lead in areas such as AI, ML, data analytics, and cloud computing.

This technological focus is not just about staying current; it is about building the capabilities that will define the next generation of global business operations. By prioritizing advanced technologies, GCCs ensure they remain indispensable to their parent companies and continue to drive value across the global value chain.

Future Outlook

The future of GCCs in India is poised for significant growth and innovation. According to EY’s latest report, the domestic GCC market size is projected to reach $110 billion by 2030, driven primarily by software exports, a key component of India’s service exports ^3. The number of GCCs in India is expected to increase from the current 1,600 to 2,400 by 2030, with the potential to rise further to 2,550 as India solidifies its position as a global technology and services hub.

This anticipated growth is indicative of India’s expanding role in the global market. The establishment of new GCCs, projected to rise to 115 per year from the current 70, further underscores the country’s growing importance in the global technology ecosystem.

Conclusion

Global Capability Centers in India have undergone a remarkable transformation, evolving from basic support functions to becoming central hubs of innovation and technology. As they continue to adopt and integrate advanced technologies, GCCs are set to play an even more critical role in the global operations of their parent companies. The future of GCCs in India is bright, with significant growth on the horizon, positioning India as a leader in the global technology and services market.

For industry leaders, the message is clear: India’s GCCs are not just a part of the global operation—they are the future of it. As we look ahead, the continued evolution of GCCs will be pivotal in shaping the global business landscape, driving innovation, and ensuring competitive advantage on the world stage.