The Rise of Global Capability Centres (GCCs)

Why they matter today, how they’re evolving and why they’re more than just cost centres?

If you’ve been anywhere near the Indian tech scene in the last few years, you’ve probably heard the term Global Capability Centre or GCC thrown around a bunch. At first glance, it sounds corporate-y, but these centres are one of the most exciting shifts happening in India’s economy right now.

What Exactly Is a GCC Today?

Think of a Global Capability Centre as a company’s strategic “thinking and doing” hub outside of its headquarters. Instead of handling just basic back-office tasks, a GCC is a fully owned unit where a multinational runs important business functions like software engineering, product design, data analytics, AI labs, finance, R&D, basically the engine room of next-gen work for the whole company.

Originally, these were called captive centres or global in-house centres, and their role was pretty straightforward: do the work that’s too costly or complex to manage back home.

Why GCCs Matter Now?

India’s Unmatched Scale :

According to industry data reported by ET GCCWorld, India hosts over 1,700 GCCs, employing nearly 1.9 million professionals across cities like Bengaluru, Hyderabad, Chennai, Pune and Gurugram. That’s more than half of all GCCs worldwide.

And it keeps growing. As reported by ET GCCWorld and Flexiple Insights, the number of GCCs in India could cross 2,200 by 2030, driven by expansion into both metro and Tier-2 cities.

The Shift Beyond Cost:

Earlier, a GCC was mainly about salary arbitrage. Hire great talent at lower costs and save money.

Now, the game has changed.

According to EY, nearly 92% of GCC leaders say their centres go well beyond cost optimisation and actively contribute to innovation and global business strategy.

So instead of being a “support unit,” GCCs are becoming innovation powerhouses, building products, leading R&D, owning global processes and unlocking new value for their parent companies.

Digital and AI Leadership from India:

ET GCCWorld and Flexiple Insights report a significant proportion of Indian GCCs are investing heavily in advanced analytics, AI and GenAI capabilities. Many organisations are choosing to incubate these capabilities inside their GCCs because of the depth of talent and the speed at which teams can experiment and scale.

For global leadership, this represents a shift in where innovation originates. Increasingly, it is India-based teams that are building and refining solutions for international markets.

From Cost Centres to Innovation Hubs

The most important transformation is cultural. Initially, GCCs were measured on efficiency metrics. But today, they are measured on business impact. This has led to three clear changes-

• Firstly, GCCs are moving ahead from execution to ownership. Many centres now own end-to-end global platforms and product lines, rather than contributing to isolated components.
• Secondly, GCC leaders are part of enterprise decision-making. As reported by EY, a growing share of GCCs manage complete global processes and participate in strategic planning alongside headquarters teams.
• Thirdly, the talent profile has shifted. Now, GCCs increasingly attract senior technologists, architects, product managers, data scientists. This elevates the centre’s role from merely delivering results to more leadership and managerial responsibilities.

GCCs and BPM Providers: A Complementary Model

A common concern is whether the rise of GCCs reduces the relevance of BPM providers. In practice, the opposite is true.

BPM providers continue to play a critical role in delivering scale and operational excellence across various processes, including customer support, finance operations, HR, and compliance. As highlighted in ET GCCWorld discussions, many organisations operate hybrid models where BPM partners manage process efficiency and GCCs focus on value creation. The result leads to a more resilient and flexible operating model.

For leaders, the question is not GCC versus BPM, but how to design the right balance between the two.

Why India Continues to Lead?

India’s leadership in the GCC space is driven by more than talent availability. According to ET GCCWorld, factors such as ecosystem maturity, digital readiness, leadership depth and expanding Tier-2 city infrastructure are accelerating the next phase of GCC growth.

The economic impact is significant. India’s GCC ecosystem is projected to generate over $100 billion in annual value by 2030, making it a cornerstone of the country’s global services economy.

Global Capability Centres may have begun as cost-efficient back offices, but today they are strategic engines powering innovation and high-value work at scale.

They are creating meaningful employment, shaping global decisions, and positioning India as a core hub in the world’s business ecosystem.

Rather than replacing BPM providers, GCCs are expanding the services landscape through collaboration, specialisation, and smarter operating models. One thing is clear: GCCs are not the future. They are the present, and their influence on India’s growth story is accelerating.