What Makes Bengaluru the #1 Choice for Fortune 500 GCCs?
Bengaluru, long hailed as India’s tech capital, has evolved from a tech labour haven to becoming an undisputed innovation hub for Fortune 500 companies, propelled by their global capability centres (GCCs). Karnataka’s IT & BT minister Priyank Kharge recently showcased Bengaluru’s dominance in a post on X. The city boasts the highest number of Fortune 500 companies in the country, with a staggering 400 of them setting up shop here. But what exactly makes the place such a compelling destination for the world’s biggest corporations? A Thriving Talent Pool and Culture of Innovation Industry leaders unanimously agree that Bengaluru’s appeal comes from its access to an outstanding talent pool, reputation as a technology innovation hub, and proven ability to scale businesses effectively. Kimberly-Clark, known for its brands like Huggies, Kleenex, and Kotex, chose Bengaluru for the several strategic advantages it offers. “The primary reason for Bengaluru, in my opinion, is the access to a great talent pool here,” Sreekanth Jayabalan, VP and CIO, told AIM. He cited a few key drivers: “Access to good talent and real innovation, a supportive ecosystem, and the ability to support the scaling of our solutions and improve our speed to market globally.” Not Just a Back Office Anymore What makes Bengaluru even more enticing is the fact that many GCCs are not limited to back-office support but are also driving innovation, particularly in AI and digital transformation. “Our vision is to have agents talk to each other, where you give them a high-level task, and they are able to split it up into multiple tasks,” explained Jayabalan. “We have set up an AI global center of excellence, which is run out of the GDC in Bangalore.” This focus on innovation has already translated into tangible business benefits for them. Jayabalan shared that their team developed an AI-powered solution called Maestro, which has resulted in substantial cost savings. Beyond Cost While many companies are drawn to India for the obvious cost advantages, Roche is a prime example of a company that has redefined the role of GCCs. Unlike many centres focused on cost management, Roche’s India centre is driven by a strong focus on innovation. “Most centres are established not only for innovation but also to manage costs and house large support teams. Typically, innovation constitutes just 10% of the workforce, while 90% focuses on operational support,” Raja Jamalamadaka, country head at Roche Information Solutions India, told AIM. “However, at Roche, the structure is the opposite—our centre is built primarily for innovation. This makes us a true, future-focused centre dedicated to developing breakthrough products that set Roche apart,” he revealed. This innovation-first approach is visible in the work being done at Roche’s India centre. Jamalamadaka explained how the team is at the forefront of developing products that lead to significant technological advancement. “Our teams specialise in software engineering, data and analytics, and digital platforms like ServiceNow, which are essential for any modern organisation. Additionally, our innovation efforts sometimes lead to patent filings.” A Model for IT and AI Another compelling example of Bengaluru’s prominence in the tech space is the success of Daimler Truck Innovation Centre India (DTICI), a GCC based in Bengaluru. Established three years ago, it has been delivering world-class IT and engineering solutions for the parent company. “We set up DTICI in Bengaluru three years back and I think we’ve made tremendous progress in innovating for the parent organisation in many areas,” Raghavendra Vaidya, managing director and CEO of DTICI, told AIM. “Our goal is very simple: to provide world-class engineering and IT solutions to our customers and our products.” Building on this success, DTICI took a significant leap forward last year by placing data and AI at the core of its strategy. “We decided that the accountability of making data and AI and the business benefits of that will be driven from Bangalore,” Vaidya added. Beyond these, the other Fortune 500 companies in Bengaluru include Walmart, Target, Lam Research, Tesco, BlackRock, RTX, Carl Zeiss AG,IBM,Goldman Sachs,Cargill and more.
The GCCs are not limited to back-office support but are also driving innovation, particularly in AI and digital transformation.
The GCCs are not limited to back-office support but are also driving innovation, particularly in AI and digital transformation.
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Shalini is a senior tech journalist, exploring the latest advancements in AI. When she's not reporting on the latest innovations, you can find her immersed in her next literary adventure.