Global capability centres, once viewed as back-end support arms of multinational corporations, have evolved into strategic assets driving innovation, research, and high-value services. India is now the undisputed global hub for these centres, accounting for 45–50% of all GCCs globally. With over 1,800 centres employing 2.1 million professionals, their contribution to India’s GDP—currently over 1.5%—is set to rise.
From IT and product development to quality audits and financial analytics, GCCs have moved well beyond routine tasks. Microsoft, Goldman Sachs, AstraZeneca, and Bosch are among the companies that have established large-scale operations in India, primarily in metros such as Bengaluru, Hyderabad, Pune, and Chennai.
READ | ELI scheme will boost female participation in manufacturing
While the concentration of GCCs in metro cities has driven India’s rise in the sector, it has also created structural constraints. According to ANAROCK Research, in 2023 and 2024, GCCs leased 52.88 million square feet—or 37%—of the 141.43 million sq ft of total gross office space in India’s top seven cities. Bengaluru alone accounted for nearly half of the GCC leases, followed by Hyderabad at 19%. Such clustering raises costs, strains infrastructure, and limits the opportunity for broader regional development.
Taking GCCs beyond Tier I cities
Recognising the imbalance, the Union government is now working to push GCC growth beyond Tier I cities. Following an earlier Budget announcement, the IT Ministry is preparing a framework aimed at expanding GCCs into Tier II and Tier III towns. The plan includes reforms in building bylaws, creation of digital infrastructure, and strengthening academia-industry linkages to ensure a steady supply of industry-ready talent.
States like Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, Gujarat, and Madhya Pradesh have already introduced tailored policies to attract GCCs. These include land subsidies, regulatory facilitation, and skilling initiatives aligned with emerging technologies such as AI and Industry 4.0.
Talent and cost advantage in emerging cities
A key enabler of the decentralisation push is India’s wide base of technically skilled graduates. Employability among Tier I college graduates stands at 48.4%, with Tier II and Tier III colleges following closely at 46.1% and 43.4%, respectively. These numbers suggest that the talent pool is both deep and geographically dispersed.
Cost advantages are another driver. Real estate and operational costs in cities like Indore, Coimbatore, Visakhapatnam, Madurai, and Bhubaneswar are significantly lower than in traditional hubs. Improved physical and digital connectivity, including fibre infrastructure and dedicated tech parks, further add to their appeal.
Firms like Cognizant and Infinx Healthcare have already established GCCs in these emerging locations. According to a Nasscom-Zinnov report, Tier II and Tier III cities accounted for 7% of GCCs in FY24—up from 5% in FY19—a modest but meaningful shift.
GCCs: Broader strategic realignment
The trend also reflects a broader strategic shift among global firms to diversify operations and mitigate concentration risk. The post-COVID China+1 strategy, concerns over geopolitical risk in Eastern Europe, and supply chain disruptions have made India an attractive hedge. This has drawn companies in BFSI, pharma, manufacturing, and even aerospace to consider India for core design, analytics, and compliance work—not just support functions.
India’s expanding GCC ecosystem is increasingly playing a leadership role in global decision-making. Centres are now delivering end-to-end product ownership and participating in AI-led digital transformation for their parent organisations.
The $110 billion opportunity
The Indian GCC market stood at $72 billion at the start of 2025, a significant leap from $40.4 billion in FY19. If the current trajectory holds, it is expected to reach $110 billion by 2030, with over 2,400 GCCs operating in the country.
To achieve this, the government will need to sustain its policy momentum. It must encourage greater sectoral diversity beyond IT—especially in pharmaceuticals, AI, and advanced manufacturing. Incentives, regulatory clarity, and infrastructure support will be key to sustaining investor confidence.
With India becoming a microcosm of global enterprise, GCCs are no longer just outsourcing centres—they are a critical piece of the country’s economic architecture. By extending their footprint beyond the metros, India has the opportunity to drive more inclusive, balanced, and innovation-led growth.