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Global Capability Centres: Powerful Drivers of India’s Rise in the Global Economy

Global Capability Centres (GCCs) are strategic centres established by multinational companies to carry out specialized business operations worldwide. Although they initially emerged as cost-reduction centres, they have evolved into key hubs for innovation, technology, research, analytics, and talent development. GCCs are company-owned units providing services in information technology, accounting and finance, data analytics, human resources, research, and development. Their primary objectives are to improve operational efficiency, reduce costs, access skilled talent, and support global business strategies.

What Are Global Capability Centres (GCCs)?

GCCs help companies enhance productivity, innovation, and decision-making capabilities. They also provide skilled talent in fields such as artificial intelligence (AI). In today’s business environment, GCCs create high-skilled employment opportunities and contribute to economic growth. They also offer advantages such as managing global operations across different time zones, improving business-service quality, attracting foreign investment, and increasing exports.

India’s GCC Ecosystem: Scale, Revenue and Employment

According to a 2025 Zinnov report, there are approximately 3,200 Global Capability Centres (GCCs) worldwide, of which nearly 1,700—about 53%—are located in India. GCCs have become a critical pillar of India’s modern business ecosystem. Latest NASSCOM–Zinnov 2026 data show that 2,117 GCCs in India operate through 3,728 delivery units, employing around 2.36 million professionals and generating nearly USD 100 billion in revenue. As per Team Lease, India’s GCC sector contributed about USD 64.6 billion in export earnings. The Economic Survey 2025–26 recognizes GCCs as key to integrating India into global value chains. Deloitte’s 2026 IT outlook estimates that by FY2030, India’s GCC ecosystem could create a net economic impact of USD 470–600 billion, equivalent to 2.2–2.8% of India’s GDP. Including direct and indirect employment, the sector could support 20–25 million jobs. GCCs are strengthening innovation through patents, new products, AI-driven solutions, digital platforms, and specialized research. India’s GCC ecosystem is also boosting services exports and foreign exchange earnings. Its expansion is creating multiplier effects in real estate, telecommunications, transport, education, recruitment, and consulting. Leading multinational companies with large GCCs in India include JPMorgan Chase, HSBC, Wells Fargo, Barclays, Microsoft, Deutsche Bank, Standard Chartered, Amazon, Goldman Sachs, and Walmart Global Tech. Overall, GCCs are playing a pivotal role in making India’s business environment more modern, technology-driven, and globally competitive.

India’s National GCC Policy Framework and Government Initiatives

As of August 2026, India does not yet have an independent national policy specifically designed for Global Capability Centres (GCCs). However, in the Union Budget 2025–26, the government announced a national framework to help states promote GCCs. This framework gives particular importance to developing GCCs in Tier-2 cities. It focuses on skilled human resources, infrastructure, building regulations, and industry collaboration. The Ministry of Electronics and Information Technology is working on designing this national framework. At the same time, several states—including Karnataka, Gujarat, Maharashtra, Tamil Nadu, Uttar Pradesh, and Haryana—have already introduced their own GCC policies and schemes. According to reports published in August 2026, the central government is expected to finalize the national GCC policy framework during 2026. Proposed measures include single-window approvals and an institution-based digital locker system.

Key Challenges Facing India’s GCC Sector

As Global Capability Centres (GCCs) evolve from conventional cost-focused units into strategic hubs for technological innovation, they face several challenges, including a global shortage of specialized talent, rising employee costs, cybersecurity threats, data-privacy requirements, geopolitical tensions, and changing regulations. According to Ernst & Young’s 2025 GCC Pulse Survey, 66% of GCCs identified difficulty in attracting talent with specialized technical skills as a major risk, while 54% cited rising employee costs, 50% employee attrition, and 36% limited employee skill development. The growing use of artificial intelligence is creating additional challenges related to data security, ethics, and governance. The rapid expansion of GCCs in India has intensified competition for experienced professionals in artificial intelligence, cloud computing, cybersecurity, data engineering, and product development. Rising salaries and infrastructure costs are also challenging India’s traditional low-cost advantage. According to a 2026 CIEL–People Matters study, 58% of GCCs in India take more than 45 days to fill critical positions. Automation may reduce routine and repetitive jobs while increasing demand for advanced technology skills, making continuous reskilling and upskilling essential. However, only 27% of GCCs currently report clearly achieving AI-driven outcomes. GCCs also face urban congestion, high office and real-estate costs, employee-retention challenges, and concentration in major cities such as Bengaluru, Hyderabad, Pune, and Chennai. Frequent changes in taxation, labour laws, data-protection requirements, and technology regulations may further increase compliance costs.

How India Can Strengthen Its GCC Ecosystem

To overcome challenges and enhance their contribution to business, Global Capability Centres (GCCs) must continuously develop talent with specialized skills in artificial intelligence, machine learning, cybersecurity, cloud computing, and data analytics. They should strengthen reskilling and upskilling programmes to improve employee capabilities while establishing robust data-security measures, ethical standards, and AI-governance frameworks. GCCs should increase investments in R&D, patents, engineering, product development, and innovation. Governments and companies should encourage GCC expansion into Tier-2 and Tier-3 cities. Strong university–industry partnerships can align education with industry requirements and reduce skill gaps, while collaboration with Indian startups can accelerate innovation. GCC performance should be assessed not only by jobs created but also by revenue, exports, patents, productivity, innovation, and global business impact. Multinational headquarters should provide Indian GCCs with greater responsibilities and decision-making autonomy. This will help GCCs evolve from service-delivery centres into strategic business partners, strengthening India’s economic growth, innovation capacity, and global competitiveness.

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