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Market Reports

India’s Global Capability Center (GCC) Landscape

Market Reports - ​​India’s Global Capability Center (GCC) Landscape

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Quick Facts: Global Capability Centers in India

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Overview of Global Capability Centers in India

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Types of Global Capability Centers

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Global Capability Centers Hubs in India

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Key Megatrends Shaping Global Capability Centers

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Government Initiatives

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Why Invest in India?

Quick Fact: Global Capability Centers in India

  • India hosts over 1,800 global capability centers (GCC), providing employment to more than 2 million individuals.
  • These GCCs together contributed INR 5.4 trillion in 2024 and are anticipated to surpass 8.5 trillion by 2030.
  • Bengaluru, Hyderabad, Delhi NCR, Mumbai, Pune and Chennai continue to be the leading hubs for global capability centers.
  • The Indian government has established special economic zones (SEZs) to facilitate the setup of GCCs, offering companies access to a range of tax incentives and other benefits.
  • Due to its skilled workforce, 75% of the top 1,000 global R&D centers have established a presence in India.
  • Union Budget 2025 has introduced a national framework aimed at driving the growth of GCCs in Tier-2 cities.
  • India is projected to experience a 15-20% increase in non-US companies establishing GCCs in the next two years, with the UK, Germany, Japan and Nordic countries at the forefront of this shift. 

Overview: Global Capability Centers in India

Global Capability Centers (GCCs), also known as Global In-house Centers (GICs), are offshore facilities established by MNCs to manage various business functions for their parent organizations. These centers operate as internal entities within the global corporate structure, providing specialized services such as IT support, R&D, customer service and other business tasks. Initially, GCCs were set up in India to leverage cost advantages, focusing mainly on back-office operations like customer support, data processing and IT services. India’s skilled labor force and lower operational costs made it an attractive destination for these centers.

Over time, the role of GCCs in India has expanded significantly. While they once primarily provided cost-effective solutions for routine business functions, they have evolved to handle more critical business functions. Today, GCCs in India play a pivotal role in areas such as R&D, digital transformation, analytics, cybersecurity and innovation. These centers are no longer just delivery-focused; they have become innovation hubs, contributing to the global corporate strategies of their parent companies.

Key sectors driving the demand for GCCs in India include banking and financial services, retail, telecom and manufacturing, all of which are rapidly adopting technologies like AI, cloud computing and IoT. With advancements in technologies such as GenAI, these centers are expected to continue their transformation, focusing on automation, optimization and operational efficiency to reduce costs and deliver critical strategic capabilities.

Sector - wise Distribution of GCC during 2022 - 24

Types of Global Capability Centers

Shared Service Center

  • A Shared Services Center (SSC) is a centralized unit that provides support for various business functions across different departments within an organization. It includes the use of people, processes and technology to deliver services such as IT support to multiple business units.
  • SSCs can operate from different physical locations and cover multiple business functions. India has become a popular destination for global companies to set up SSCs due to its large pool of affordable talent.
  • Delhi NCR, Bengaluru, Pune, Hyderabad and Chennai are the top cities for this, while Tier-3 cities like Jaipur, Chandigarh and Kochi also offer benefits like lower operational costs and a better quality of life. Major global corporations and banks, including GE, American Express, Bank of America and others, have established SSCs in India.

R&D Center

  • India has become a key global destination for research and development (R&D), with significant growth across various sectors, including information technology, pharmaceuticals, automotive, aerospace and renewable energy.
  • Major cities such as Bengaluru, Hyderabad, Pune, Chennai and Delhi-NCR are home to some of the world’s largest R&D centers, with a concentration of highly skilled talent and advanced infrastructure.
  • These cities provide a collaborative environment for multinational companies and startups alike, fostering innovation in both product development and process improvements.

Knowledge Center

  • India has emerged as a prominent hub for knowledge centers, spanning sectors like information technology, finance, healthcare, education and manufacturing.
  • Key cities such as Bengaluru, Hyderabad, Chennai, Mumbai and Delhi-NCR host a significant number of global and domestic knowledge centers, where research, data analysis, product development and strategic decision-making take place.
  • India has various knowledge centers, including those focusing on Indian Knowledge Systems (IKS), smart grid technologies and startup initiatives. Some notable examples include the National Knowledge Network (NKN), the Smart Grid Knowledge Center (SGKC) at Manesar and the Indian Knowledge Systems (IKS) initiatives under the Ministry of Education.

Innovation Center

  • India has numerous innovation centers, ranging from science centers to technology hubs and incubator programs. 
  • These centers play a crucial role in fostering innovation and entrepreneurship across various sectors, from science and technology to life sciences. 
  • These centers capitalize on India’s thriving startup ecosystem, highly skilled workforce and advanced infrastructure to drive cutting-edge solutions.

Customer Service Center

  • India has become a global leader in customer service centers, supporting a wide range of industries including telecommunications, IT services, finance, e-commerce and healthcare.
  • Major cities like Bengaluru, Mumbai, Pune, Chennai and Noida are key hubs for these centers.
  • The country’s strengths in language diversity, cost efficiency and a strong service-oriented workforce have made it the go-to destination for outsourcing customer service functions.

Global Capability Centers Hubs in India

  • Karnataka
    Karnataka is a major hub of GCC in India. Bengaluru, a key city, is home to more than 750 GCCs, employing approximately 560,000 professionals. These centers span various sectors, including banking, IT, manufacturing and healthcare, reflecting Bengaluru’s diverse industrial landscape. Prominent multinational companies such as Microsoft, Goldman Sachs and Shell operate large-scale GCCs in the city, driving global innovation and operational efficiency.
  • Tamil Nadu
    Tamil Nadu has become a prominent destination for Global Capability Centers (GCCs), hosting over 350 such centers across the state, with more than 300 located in Chennai alone. In addition to Chennai, other cities like Coimbatore, Salem, Madurai, Vellore and Tirunelveli are emerging as viable locations for GCCs, driven by the availability of a large talent pool and supportive local policies.
  • Gujarat
    Gujarat is rapidly emerging as a strategic destination for Global Capability Centers (GCCs), bolstered by the state government’s proactive initiatives and the establishment of the Gujarat Global Capability Center Policy 2025–30. This policy aims to position Gujarat as a leading hub for GCCs, offering a conducive environment for multinational companies to set up operations. A notable example is Infineon Technologies, which inaugurated its Global Capability Center in Ahmedabad. Additionally, Google has announced plans to establish a global fintech operations center in GIFT City, Gujarat’s International Financial Services Centre.
  • Telangana
    Around Telangana, Hyderabad has become a prominent hub for Global Capability Centers (GCCs), attracting multinational companies across diverse industries. Major companies like Microsoft, which has its largest software development center outside the U.S. and Sanofi, expanding its global capacity center, have established significant operations here. Additionally, Korcomptenz has set up AI-focused R&D hubs in the city.
GCC in India by Cities, 2024

Key Megatrends Shaping Global Capability Centers

Digital Transformation

  • The integration of AI, automation, cloud computing and data analytics is driving digital transformation in GCCs, improving operational efficiency and enabling real-time decision-making.
  • Digital tools are facilitating remote work, global collaboration and seamless communication, making GCCs more agile and responsive to market demands.

Geographical Diversification

  • Expanding GCCs across different regions helps companies reduce exposure to geopolitical risks and disruptions, ensuring business continuity.
  • By establishing a global presence, companies can better cater to local markets, enhance customer relationships and drive regional growth.

Sustainability and Green Initiatives

  • GCCs are increasingly adopting sustainable practices and renewable energy sources to reduce environmental impact and align with global sustainability goals.
  • Implementation of carbon offset programs and partnerships with environmental organizations to neutralize emissions.

Talent and Workforce Evolution

  • As digital technologies advance, GCCs are investing in upskilling their workforce to remain competitive, ensuring employees are proficient in emerging technologies.
  • The rise of remote work enables GCCs to access a broader and more diverse talent pool globally, enhancing recruitment and retention strategies.

Government Initiatives

Special Economic Zones (SEZs)

Setting up a Global Capability Center (GCC) in a Special Economic Zone (SEZ) in India offers significant tax benefits and regulatory relaxations. These incentives, including tax exemptions and other support, are designed to attract and encourage the growth of GCCs in India, making them an attractive option for businesses looking to establish operations in the country. 

  • 100% tax exemption on export profits for the first 5 years
  • 50% tax exemption for the next 5 years
  • 50% deduction on reinvested profits for an additional 5 years
  • No GST on services provided by SEZ-based GCCs
  • GCCs in SEZs can repatriate profits without additional tax burdens

Government Incentives for Tier-2 & Tier-3 Cities

Some states like Uttar Pradesh offer additional support, like:

  • Land subsidies
  • Exemption on stamp duty for land and office purchases
  • Capital investment subsidy
  • Operating cost support

FDI Liberalization

India allows 100% FDI in most sectors like IT, banking, financial services and healthcare. The liberalized Foreign Direct Investment (FDI) policy in India plays a crucial role in attracting investment to Global Capability Centers (GCCs), facilitating economic growth, and enhancing India’s position as a key hub for business and technological innovation.

  • The relaxation of FDI norms simplifies the process for foreign companies to set up or expand their GCCs in India.
  • India’s large, skilled workforce, especially in technology and engineering, attracts global investors to set up or grow their GCCs.
  • With increased foreign investment, there is an ongoing enhancement in infrastructure, including better connectivity, data centers and office spaces, further facilitating the growth of GCCs in India.

Why Invest in India?

Abundant and Skilled Talent Pool

  • Largest STEM (Science, Technology, Engineering and Mathematics) Graduate Base: India produces over 2 million STEM graduates annually, making it the largest source of tech talent globally.
  • Cost-Effective Workforce: High-quality talent is available at 30–40% lower costs compared to Western markets.
  • Multilingual Capabilities: Language diversity supports global customer service and cross-border operations.
  • Experience in Advanced Roles: A growing number of professionals are skilled in analytics, AI/ML, cybersecurity and cloud technologies.

Supportive Government & Regulatory Environment

  • Favourable Policies: State and central governments offer incentives (tax breaks, subsidies land at concessional rates) to attract GCCs.
  • Ease of Doing Business: Simplified compliance processes and growing digital governance reduce regulatory friction.
  • GIFT City & SEZ Benefits: Special Economic Zones and GIFT City offer tax benefits and streamlined foreign investment policies.
  • Robust IP and Data Protection Laws: Strengthened legal frameworks around IP and data enhance investor confidence.

Mature GCC Ecosystem

  • Strong GCC Base: India hosts the largest number of GCCs in the world, across sectors like BFSI, healthcare, retail and technology.
  • Tier-1 & Tier-2 City Penetration: Cities like Bengaluru, Hyderabad, Pune and emerging hubs like Kochi and Noida support scalable operations.
  • Strong Ecosystem of Partners: Availability of local IT service providers, infrastructure vendors and consulting firms eases setup and operations.
  • Proven Global Success Stories: Firms like Microsoft, Google, Goldman Sachs and Walmart have long-standing, scalable GCC operations in India.

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