Global Capability Centers (GCCs) in India have evolved significantly, emerging as not just enablers, but strategic pillars of global business transformation. By leveraging advanced skillsets, deep business acumen and expertise in emerging technologies, GCCs now play a pivotal role in shaping and achieving the parent organization's overall strategic goals.
However, to sustain this momentum and navigate an increasingly complex global landscape, GCCs must build a strong foundation—one that is based on a people-first approach. This approach, which prioritizes the well-being, growth and development of employees, not only fosters a positive work culture but also leads to higher productivity, better innovation and greater business success.
People-centricity: The cornerstone of resilient GCCs
If the 2020 pandemic proved one thing, it is that resilience is non-negotiable. Disruptions are inevitable and organizations that adapt quickly will thrive. The post-pandemic era has accelerated remote and hybrid work adoption, further strengthening India's GCC talent pipeline. For GCCs, resilience begins with a people-centric approach and a future-ready operating model. To ensure continuity and success, organizations must focus on three critical areas:
- Expanding Talent Horizons Beyond Metro Cities
- Cultivating a Culture of Change and Innovation
- Evolving from Execution to Innovation Ownership
Expanding talent horizons: Unlocking potential beyond metros
For years, GCCs in India have concentrated in major IT hubs in Bengaluru, Hyderabad, Pune, Chennai and Delhi/NCR. However, as these cities become increasingly saturated, the next opportunity lies in emerging locations such as Coimbatore, Nagpur, Vizag, Bhubaneswar, Lucknow, Trivandrum, Madurai and Kochi. These cities offer:
- Access to a skilled workforce from top educational institutions
- Improved cost efficiencies and lower operational expenses
- Strengthened regional economies through industry-academia partnerships
- Enhanced business continuity and operational resilience
Adopting hybrid work models has further accelerated this shift, allowing GCCs to tap into the growing, cost-effective talent pools of tier-2 and tier-3 cities. With rapidly improving skill levels, these regions enhance workforce diversity and operational efficiency.
Despite their growing strategic importance, most GCCs in India remain relatively small in scale. Only about 5% have a headcount exceeding 5,000 employees and even among Fortune 500 companies, the median GCC headcount is around 1,550. This variation in size highlights both the potential for expansion and the challenges associated with scaling operations.
By leveraging these emerging talent hubs, GCCs can diversify their workforce, drive inclusive growth and strengthen their competitive edge in the global market.
Cultivating a culture of change and innovation
Beyond geographical expansion, GCCs must continuously refine their operational models to stay ahead. A strong culture of innovation is essential to drive business impact and long-term success. Key focus areas include:
- Technology-driven productivity: Leveraging AI, automation and cloud computing to streamline workflows and enhance efficiency.>
- Robust Governance Frameworks: Ensuring global alignment, compliance and agility in operations.
- Embedding ESG Principles: Prioritizing sustainability, responsible business practices and social impact.
Evolving from execution to innovation ownership
The era of transactional outsourcing is long gone. According to the NASSCOM report, India's Global Capability Centers (GCCs) have evolved remarkably. A decade ago, 70% of GCCs functioned primarily as support centers—today, that number has dropped to just 5%. As the sector continues to expand, with projections indicating over 620 GCCs from Forbes Global 2000 companies by 2030, the next phase will be driven by AI-powered automation, deep-tech specialization and leadership in high-value decision-making. This shift will redefine operational excellence and position India's GCCs as global hubs for innovation, strategic leadership and enterprise-wide efficiency.
The road ahead: A people-first strategy for sustainable growth
While technology plays a crucial role, the true differentiator for GCCs will be their people. Investing in talent development, fostering a culture of innovation and adopting a people-first mindset will be essential to sustaining momentum. This transformation will be critical to developing strong leadership pipelines, enabling cross-functional collaboration and upskilling talent in emerging technologies.
By taking full ownership of innovation and driving enterprise-wide transformation, India's GCCs have the potential to shape the future of global business strategy. Their success will strengthen India's position as a global innovation hub and redefine the role of GCCs in delivering strategic value worldwide.
