In a world where digital is no longer optional and businesses are expected to evolve at the pace of innovation, Global Capability Centers (GCCs) are no longer back-office operations; they’re strategic engines. Multinational corporations (MNCs) aren’t just outsourcing for savings anymore. They’re building deeply integrated hubs that drive agility, enable product acceleration, and support enterprise transformation from the inside out.
India, with its rich tech ecosystem and deep talent pool, has emerged as the heartbeat of this shift. As of early 2025, the country hosts more than 1,700 GCCs employing close to 1.9 million people; a figure projected to surge past 2.8 million by 2030. The question for global firms isn’t whether to set up a GCC, but how to get it right.
This article takes a closer look at the Global Capability Center model: what it is, how it’s evolved, what it enables, and why it’s become a cornerstone of global business strategy.
Think of a Global Capability Center, also known as a Global In-house Center (GIC) or Captive Center, as a fully owned offshore or nearshore unit of a multinational company. It’s not outsourcing in the traditional sense. These centers offer full control, seamless alignment with enterprise goals, and complete ownership of the work and the IP it generates.
The early versions of Global Capability Centers focused on predictable support functions such as IT tickets, customer service, finance operations. But those days are long gone. Today’s GCCs are running enterprise-grade systems, developing digital products, designing AI models, and anchoring global R&D.
In many firms, these centers aren’t just aligned with strategy—they help define it.
The story of Global Capability Centers begins in the 1990s. Back then, the model was straightforward: move repeatable, rules-based tasks offshore to reduce costs. India, with its engineering talent and cost advantage, became the obvious choice. The early GCCs were transaction-driven, focused on support desks, data entry, claims processing.
But as India’s digital infrastructure matured in the 2000s, so did the expectations from these centers. The second wave brought in software engineering, advanced analytics, and domain-specialized functions. Policy moves like the Special Economic Zones (SEZs) and growing onshore-offshore collaboration helped push this shift forward.
Since 2015, we’ve entered a third wave. Today’s GCCs are innovation hotbeds. AI labs, cloud-native platforms, and cyber defense teams are all being built and scaled out of India.
Look at JPMorgan Chase’s setup in Bengaluru. What began as a traditional IT support base now powers core AI research shaping global risk and compliance frameworks. That’s the arc of transformation.
The range of responsibilities handled by Global Capability Centers has expanded dramatically over the years. What started as function-specific support has evolved into a wide-ranging operational backbone that cuts across business lines, domains, and geographies. Today, these centers are instrumental in powering large-scale digital transformation efforts, co-developing products, and delivering critical enterprise outcomes end-to-end.
Below are the most common service areas:
This functional depth explains why Global Capability Centers are increasingly treated not just as support entities but as co-innovation partners and transformation catalysts.
India’s lead in the GCC space is not by accident. As of 2025, the country is home to over 1,700 operational GCCs with close to 1.9 million employees. This base is projected to grow to between 2.5 and 2.8 million by 2030.
According to a recent industry report, Global Capability Centers in India are expected to generate between 425,000 and 450,000 new jobs in 2025 alone. Much of this growth is driven by high-value sectors such as BFSI (Banking, Financial Services, and Insurance), manufacturing, and retail-tech.
Pune’s rise is especially notable—mid-sized GCC companies are picking it for its cost efficiency and access to high-quality engineering talent.
Here’s what makes Global Capability Centers a compelling choice for global enterprises:
Setting up a high-performing Global Capability Center goes far beyond simply choosing an affordable city. It demands a thoughtful approach that connects business objectives with executional realities. From how work gets done to how teams are structured and supported, every layer matters. The success of a GCC often hinges on how well it’s planned across operations, technology, and organization design. Here are the key factors to consider:
Choosing the right city or region to set up a Global Capability Center can significantly influence its performance and longevity. Below are the critical location-selection considerations:
Legal and regulatory compliance is a foundational element in establishing and operating a Global Capability Center. Non-compliance can lead to reputational damage, financial penalties, and operational disruption.
Early engagement with legal advisors, regulatory consultants, and government liaison teams is essential for a smooth and compliant GCC setup.
Here are some of the ongoing challenges the sector continues to grapple with:
Several MNCs have turned their GCCs into global performance engines. A few standout examples:
These GCC companies exemplify how strategic alignment and operational excellence can yield significant business impact.
The global GCC sector, valued at $128.5 billion in 2023, is projected to grow to over $300 billion by 2032, with a CAGR of 13.51%. India will remain central to this transformation.
Key trends to watch include:
Global Capability Centers have transcended their origins as cost-saving hubs to become essential enablers of enterprise transformation. With a talent-rich ecosystem, digital maturity, and strong policy support, India stands at the forefront of the global GCC sector.
For organizations evaluating global expansion, Global Capability Centers represent a strategic, scalable, and sustainable solution. For GCC companies, continued investment in innovation, leadership, and ecosystem partnerships will determine success in the decade ahead.
As we look to 2030 and beyond, Global Capability Centers will not just support global business—they will redefine it.
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