‘GCCs Maintain a Mortality Rate Under 1%’
There is little doubt behind global capability centres (GCCs) being resilient and enduring contributors to India’s economy. Known for their ability to sustain operations over the long term, GCCs have emerged as critical pillars of India’s economic landscape. These centres, set up by multinational companies, are designed to support a wide range of business functions, including technology development, innovation, analytics, and customer service. During the India Ideas Conclave 2024, Lalit Ahuja, co-founder and CEO of ANSR, said that GCCs have a failure rate of less than 1%. “GCCs are forever,” Ahuja said, while highlighting their long-term value and potential to become “historical manifestations” of economic stability. The economic footprint of GCCs in India is already significant. As of now, GCCs generate a net economic value of approximately $34 billion, which is expected to grow to nearly $75 to $80 billion by 2025. Beyond their revenue, their broader economic impact is even more impactful. “The economic value they add to India as a country is far higher – almost three times the direct revenue that comes from the GCCs,” explained Gaurav Gupta, Deloitte India’s GCC industry lead, in a podcast with ET Now. GCCs, established by multinational companies, serve as hubs for innovation, technology development, and business operations, making India a preferred destination for global corporations. The Rise of GCCs in India The foundation of India’s GCC journey was laid in the late 1990s and early 2000s, as multinational corporations, primarily from the United States and Europe, recognised these advantages and began setting up operations in the country. Located in Bengaluru, one of the oldest GCCs in India is Texas Instruments (TI) . It is the first multinational company to establish a software design and R&D centre in India in 1985. Over the past three decades, TI’s India centre has evolved into a critical R&D hub, with engineers contributing to almost every product developed globally by TI. In 2002, TI India expanded its focus to include the design of 3G wireless chipsets and the development of Wireless LAN (WLAN) chipsets. Later in 2005, TI India partnered with Indian manufacturer BPL to create the first cell phones. These were designed and manufactured in India, tailored to the specific needs of the Indian market, and based on TI chipsets and reference designs. In December 2010, TI established Kilby Labs in Bengaluru to mark its first international expansion of the research program beyond the US. The labs focus on innovation in energy efficiency, bio-electronics, and life sciences. Other early adopters include companies like GE, American Express, and Citibank established captive centres in cities like Bengaluru, Hyderabad, and Pune and utilised India’s cost-effective business environment and its pool of skilled professionals. Initially, these centres focused on IT services, software development, and business process outsourcing (BPO). These laid the groundwork for what would eventually become a transformative movement in global business operations. The seamless connection between India’s inherent strengths and the strategic goals of these multinational corporations led to the rapid growth of GCCs. What Experts Think Furthermore, industry experts emphasise that the success and continued growth of GCCs are deeply tied to their ability to adapt to a constantly changing global environment. In a conversation with AIM, Yashasvi Rathore, manager of legal services at Inductus GCC mentioned, “Keeping into context the market trends and our own research based analytics, the global business landscape is highly dynamic, influenced by technological disruptions, geopolitical shifts, and evolving workforce expectations.” Inductus GCC offers global organisations access to India’s talent pool and efficient operational ecosystem. “India’s GCC sector has proven its resilience and adaptability, but its long-term success depends on consistent innovation, policy alignment, and talent optimisation,” Rathore added. These centres are now seen as critical extensions of their parent organisations, capable of using India’s skilled workforce to stay competitive. However, their success also depends on external factors, including economic shifts and global dynamics, which shape their trajectory. When AIM asked the same question to Siva Kumar Padmanabhan, MD and head of global innovation and technology centre at AstraZeneca India, he said, “I think that’s a really bold statement, right? We are very focused on building a sustainable entity or organisation that can weather the storms and be ready for the future. But there are a lot of factors. No GCC can say that everything is in their control. Because GCCs are a part of the global enterprise. Economics change. Things change.” He further explained that the key to successful GCCs is their ability to consistently stay relevant to the global enterprise and their customers. They are built on a strong foundation designed to sustain and evolve over decades, constantly adapting and innovating. Staying relevant requires a commitment to self-disruption, proactive rethinking approaches, deploying newer  technology, and driving innovation. GCCs as a Disruptive Force There are many GCCs in India that are redefining their roles and continuously disrupting themselves by embracing cutting-edge AI-based technologies. These centres are no longer just operational extensions of their parent companies but are becoming innovation powerhouses that drive global strategies and transform industries. For example, Kimberly-Clark, a global leader in baby and child care brands like Huggies, Kleenex, Andrex, Cottonelle, Scott, and Kotex, has been using technology to stay ahead. In an interview with AIM, the company shared that in addition to using Microsoft Azure and OpenAI, it is also building proprietary AI solutions. Its global AI centre of excellence in Bengaluru is spearheading groundbreaking projects like KC-GPT, a custom version of ChatGPT enriched with the company’s proprietary data to enhance its operations and consumer engagement. Similarly, Fluence has adopted a unique approach that sets it apart from many organisations. While most delegate limited or ancillary tasks to India, Fluence entrusts its Indian teams with critical responsibilities. Dhanya Rajeswaran, country managing director of Fluence India, revealed, “For the first time in two years, we now have the global product leader for our next-gen product sitting out of India and designing that product.” Ultimately, the success of GCCs in India lies in their ability to adapt, innovate, and anticipate future challenges. By making the best use of advanced technologies and nurturing a forward-thinking mindset, these centres are not just contributing to their parent organisations but are also shaping the future of global business.
As of now, GCCs generate a net economic value of approximately $34 billion, which is expected to grow to nearly $75 to $80 billion by 2025.
As of now, GCCs generate a net economic value of approximately $34 billion, which is expected to grow to nearly $75 to $80 billion by 2025.
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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.