India’s Thriving GCCs Drive Innovation and Growth for MNCs
What began as a cost-cutting initiative in the early 90s for India’s Global Capability Centers (GCCs), has now evolved into a thriving business that drives innovation and growth for multinational corporations (MNCs). Once focused on routine tasks like business process outsourcing (BPO) and IT support, India’s GCCs have evolved into innovation hubs that influence strategy and fuel business growth for global corporations. India’s flourishing GCC sector currently employs over 1.6 million professionals, and the growth is projected to continue. Ernst & Young predicts that by 2030, there will be over 2,400 GCCs generating jobs for about 4.5 million Indians. The market size is expected to surge to $110 billion by 2030, up from the current $45 billion. These GCCs will not only thrive in established centers like Bengaluru and Hyderabad but are likely to spread to Tier-II & Tier-III cities, driving innovation from every corner of the country. The Evolution of GCCs in India The story of GCCs in India began with MNCs recognizing the talent pool and cost advantages of offshore operations in the 1990s and mid-2000s. These early centers were focused on back-office work and IT services, laying the foundation for global businesses to tap into India’s skilled workforce while saving on operational expenses. As India’s tech landscape matured, so did the GCCs. By the late 2010s, these centers had ventured into higher-value services, such as advanced IT support, process optimization and more, no longer content with basic support. This shift marked the dawn of full-scale GCCs, which were now seen as crucial to driving strategic business growth. India’s booming IT sector became its backbone, transforming these centers from quiet back offices to vital extensions of global companies. The past decade and a half has seen GCCs successfully take over an uncharted territory. Today, they function as ‘Centers of Excellence’ (COEs), integrating the latest technologies, such as artificial intelligence (AI), machine learning and cloud computing. These centers aren’t just supporting anymore—they’re innovating. For example, Carrier Digital Hub India, based in the tech hubs of Bengaluru and Hyderabad, is leading innovation in deep tech. The hub leverages AI, machine learning, big data, cybersecurity, and IoT to create intelligent climate solutions. Kamal Sharma, Senior Director of Global Digital Connected Hubs at Carrier, emphasized India’s growing prominence, stating, “As the GCC landscape continues to evolve and expand, India’s position as the leading digital enabler of world business will only grow stronger.” Sharma was recently recognized by AIM Research as one of the Top 25 GCC Heads, India 2024. Carrier Digital Hub India, renowned for its technological excellence, attracts top diverse talent from premier institutes across India. In 2024, the hub was recognized as a Best Place to Work for Data Scientists by AIM and acknowledged as one of the most impactful Global Capability Centers in India by Deloitte and Economic Times. The examples of Indian GCCs adding value are countless, spanning sectors like healthcare, finance and manufacturing. GCCs promote a ‘2-in-a-box’ leadership model, where leaders from India collaborate closely with colleagues across the business. This blend of expertise empowers GCCs to deliver advanced digital capabilities that operations. In the healthcare sector, Indian GCCs are currently leading efforts in drug discovery and development by harnessing computational chemistry, bioinformatics and AI-driven platforms. These centers are accelerating the R&D of new drugs and bringing them to market faster than ever before. Balasubramanian Sankaranarayanan, CEO and President of Thryve Digital LLP, explains that establishing a GCC in a country like India presents an immediate 20% cost differential compared to working with service providers. Beyond healthcare, GCCs are also bringing valuable advancements to the insurance industry, with data-driven models, personalized products, and AI-powered solutions. “More than 50% of our time is saved using some of the advanced predictive models developed by our global capability team,” said Prawal Kalita, Managing Director at Marsh. India’s Secret Weapon: Talent Powerhouse for the Future If there’s one thing that powers GCCs in India, it’s our talent pool. With over 2.15 million STEM graduates every year and a tech demand-supply gap of only 25% (one of the lowest globally), India is a tech leader in the making. Nearly half of these graduates are now primed for AI-ML roles, but demand for skilled professionals has never been higher, with GCCs often surpassing traditional IT firms when it comes to hiring. The first quarter of FY25 alone saw a 46% increase in GCC hiring, underscoring continued growth. GCCs are not only hiring faster but also achieving greater gender diversity—women’s representation rose to 30% in 2023, up from 26.6% in 2020. As new GCCs spring up in India, it’s essential that they understand the nation, its diverse cultural fabric, languages and customs. “Culture sensitization within GCCs should start from the top and become part of the strategy, not an afterthought,” said Avinash Samrit, country head, India, at Clean Harbors. With a growing number of Indians employed at GCCs, flexible work hours and hybrid work models have become essential in today’s landscape. “The first question we usually get asked is, ‘How many days are you expecting to be in the office?’” said Mansee Singhal, partner at Mercer. She added that flexibility is fundamental to the employment equation these days and its absence can significantly impact a company’s overall value proposition. Indian GCCs place a great emphasis on developing AI capabilities and leading AI transformation within their organizations. Some of the most in-demand tech roles at GCCs include software engineers, developers, data specialists, AI and machine learning experts, cloud computing professionals and cybersecurity experts. Once humble cost centers, Indian GCCs have now become vital players on the global stage. They are poised to continue fueling digital transformation, innovation and growth, carving a niche for India as a global tech leader. With each passing year, these centers strengthen their roles as strategic enablers, not just supporting but shaping the future of international business.
Carrier Digital Hub India, based in the tech hubs of Bengaluru and Hyderabad, is leading innovation in deep tech. The hub leverages AI, machine learning, big data, cybersecurity, and IoT to create intelligent climate solutions.
What began as a cost-cutting initiative in the early 90s for India’s Global Capability Centers (GCCs), has now evolved into a thriving business that drives innovation and growth for multinational corporations (MNCs).
["GCCs"]
["artificial intelligence", "machine learning", "AI", "cloud computing", "R", "ML", "Git", "RAG", "Ray", "Aim", "GCCs"]
["AI", "artificial intelligence", "machine learning", "ML", "Aim", "Ray", "RAG", "cloud computing", "R", "Git"]
Siddharth is a media graduate who loves to explore tech through journalism and putting forward ideas worth pondering about in the era of artificial intelligence.