Why Global Enterprises Are Choosing India for Their Capability Centers

While international businesses compete to reinvent, the debate has moved from ‘whether to globalize’ to ‘how to globalize more intelligently?’ 

During this strategic transformation, Global Capability Centers (GCCs) have emerged as a cornerstone of enterprise transformation, transcending cost efficiency to become drivers of innovation, agility, and growth. GCCs are now increasingly pivotal in driving enterprise innovation, AI-led reinvention, and sustainable growth. 

India has decisively emerged as the global leader of this movement. With over 1,950 locations and employment opportunities of over 1.9 million professionals,, India is commonly referred to as the GCC Capital of the World. The industry is expected to reach a value of over $105 billion by 2030, as estimated by a NASSCOM report, solidifying India as the go-to destination for GCC setup.  

India’s Talent Engine: The Foundation of GCC Success 

India produces 28% of global STEM graduates and houses 23% of the world’s software engineering workforce. This talent advantage is a crucial factor for global enterprises to accelerate their GCC setup in India. This talent is not limited to scale alone—it offers depth across specialized and emerging domains: 

• Over 120,000 AI/ML professionals embedded across Indian GCCs 

• Cloud infrastructure and DevOps engineers 

• Digital product architects and cybersecurity specialists 

More than 185 Indian GCCs now provide dedicated AI/ML Centers of Excellence. These capabilities ensure that organizations constructing their Global Capability Center in India are using talent that is not only delivering but also innovates. 

The Rise of Innovation Hubs in Global Enterprises 

The role of the GCC in India has evolved significantly. It is no longer a support function; it is a value-creating engine. Between FY2019 and FY2024, GCCs in India grew 1.3x faster than overall GCCs . In sectors like aerospace, financial services, and healthcare, India-based centers are now driving: 

• GenAI-powered risk and compliance analytics 

• Advanced medical simulations using AI 

• Real-time fraud detection systems 

• Cloud-native digital product development 

These developments demonstrate that the GCC in India is not just about efficiency but is a key component of enterprise transformation strategies. 

The Value + Impact Equation 

While providing innovation, GCCs in India continue to maintain a competitive cost advantage. Organizations can expect: 

• Up to 45% operational cost savings over 3–5 years 

• Lower capital investment in real estate and infrastructure 

• Enhanced ROI through favourable fiscal policies and exchange rates 

For CFOs and boards who are under pressure to do more with less, GCC setup in India provides a remarkable blend of short-term cost savings and long-term value. 

Enabling Ecosystem and Policy Support 

India’s policy framework actively supports the GCC model through: 

• SEZs and technology parks offering tax incentives 

• Progressive state policies in Karnataka, Telangana, and Uttar Pradesh 

• Simplified business incorporation and IP protection laws 

Additionally, the surrounding environment of startups, academic institutions, and digital service providers allows for accelerated innovation cycles. For organizations engaging in GCC consulting, must know that greenfield friction is minimal, and ecosystem integration is seamless that makes India an ideal location. 

Tier-II Cities: The Next Frontier 

GCCs in India has expanded beyond metro cities. Tier-II locations such as Bhubaneswar, Coimbatore, Vadodara, Kochi, and Ahmedabad are now renowned hubs. These cities offer: 

• 25–30% cost arbitrage over metros 

• Improved digital and physical infrastructure 

• Robust talent pools fuelled by local engineering and business schools. 

Over 82,000 professionals are already working across these non-metro GCCs. For global enterprises seeking distributed centers, this expansion enhances talent access while promoting regional economy.  

Future-Ready and Inclusive Workforces 

India’s talent system is increasingly diverse. A 2025 NASSCOM study found that 39% of Gen Z professionals are identified as neurodivergent. Indian GCCs are embedding inclusive practices by adopting: 

• Neurodiversity hiring frameworks 

• Adaptive onboarding and training systems 

• Employee resource groups and mentorship programs 

Such forward-thinking workforce strategies further enhance the strategic rationale for a GCC setup in India, especially for companies prioritizing innovation, equity, and resilience. 

What Lies Ahead 

By 2030, India is projected to host: 

• Over 2,200 Global Capability Centers 

• A workforce exceeding 2.8 million professionals 

• 50+ million square feet of dedicated GCC real estate 

Notably, 53% of GCCs are now classified as “transformation hubs,” which is an increase from 18% a decade ago . For organizations pursuing enterprise-wide reinvention, the GCC in India now serves as an extension of the global leadership team. 

India offers more than operational advantages; it represents a future-focused investment destination. The future of enterprise agility and innovation will be shaped where capability, cost, and culture intersect. This intersection is in India.