Why India Remains the Top Choice for Global Capability Centers (GCCs) in 2025
India has long been a preferred destination for Global Capability Centers (GCCs) due to its cost efficiency, skilled workforce, and strong digital infrastructure. However, 2025 is expected to mark a new era of expansion, with AI, automation, and next-gen innovation playing a critical role in reshaping GCC strategies.
With over 1,700 GCCs already operating in India and a projected rise to 2,200 by 2030, multinational corporations (MNCs) are doubling down on their India presence. This article explores the top GCC market trends in 2025, helping businesses make informed decisions about expanding in India.
1. The Growth of GCCs in India: Latest Market Statistics for 2025
The Indian GCC market is expanding rapidly, driven by increasing demand for AI-driven operations, cloud services, and digital transformation.
Key GCC Market Statistics for 2025
- India accounts for nearly 50% of the world’s GCCs, making it the largest hub globally.
- GCCs contribute over $46 billion to India’s GDP, with a projected increase to $100 billion by 2030.
- Top cities for GCCs in 2025: Bengaluru, Hyderabad, Pune, Chennai, Gurugram, and emerging Tier-2 hubs.
- Over 2 million professionals are employed in Indian GCCs, with 2.5-2.8 million jobs expected by 2030.
These numbers highlight India’s dominance in the GCC industry, making it an attractive market for companies looking to set up, expand, or relocate their global operations.
2. Why Companies Are Expanding Their GCCs in India
Companies across industries, from banking and healthcare to manufacturing and retail, are expanding their GCCs in India. Here’s why:
a) Access to Skilled Talent
India produces 1.5 million+ engineers annually, with strong expertise in AI, cybersecurity, blockchain, data science, and cloud computing. The availability of mid-to-senior level professionals with global experience adds to India’s attractiveness.
b) Cost Savings Without Compromising Quality
Setting up a GCC in India can lead to 30-60% operational cost savings compared to the US, EU, or Singapore. Competitive salaries, lower real estate costs, and a thriving startup ecosystem make India a cost-effective choice.
c) Government Support & Business-Friendly Policies
Initiatives like Digital India, Make in India, and the Special Economic Zone (SEZ) policies offer companies tax incentives, infrastructure benefits, and fast-track approvals for GCC expansion.
d) AI & Automation-Driven Digital Transformation
GCCs in India are evolving into AI-powered innovation hubs, leveraging machine learning, robotics process automation (RPA), and cloud-based solutions to drive business efficiency.
3. Emerging GCC Market Trends in India (2025)
To stay ahead in the GCC expansion race, companies need to keep up with these key trends shaping the Indian GCC market in 2025.
a) GCC Expansion into Tier-2 Cities
While Bengaluru, Hyderabad, and Pune remain dominant, companies are increasingly looking at Tier-2 cities like Indore, Kochi, Chandigarh, and Jaipur due to:
- Lower operational costs
- High-quality local talent
- Better work-life balance for employees
b) Industry-Specific GCCs
Rather than generic outsourcing, GCCs are now sector-focused, including:
- BFSI GCCs: AI-driven fraud detection, cybersecurity, digital banking.
- Healthcare GCCs: Telemedicine, AI-driven diagnostics, biotech research.
- Retail & E-commerce GCCs: Supply chain analytics, AI-powered marketing.
c) The Rise of Deep-Tech & R&D GCCs
Companies like Google, Microsoft, and Amazon are shifting from basic support functions to R&D-driven GCCs, investing in AI, IoT, blockchain, and quantum computing.
d) The Future of Work: Hybrid GCC Models
The hybrid work model is reshaping how GCCs operate. Companies are focusing on:
- Flexible workspaces & remote hiring strategies.
- Upskilling employees in next-gen technologies.
- AI-driven HR analytics to improve talent retention.
e) Data Security & Compliance Becomes a Top Priority
With the rise in cyber threats and global data regulations (GDPR, India’s Data Protection Bill), companies are investing heavily in cybersecurity infrastructure, cloud security, and regulatory compliance.
4. Challenges Facing GCC Expansion in India
Despite the strong market potential, companies setting up GCCs in India must navigate certain challenges:
a) High Competition for Skilled Talent
As demand for AI, cybersecurity, and cloud computing experts rises, companies face challenges in talent retention and wage inflation.
b) Infrastructure Bottlenecks
While major cities offer world-class IT parks and office spaces, issues like traffic congestion, high rental costs, and energy supply remain concerns.
c) Regulatory & Compliance Complexity
Companies must stay compliant with India’s evolving data protection laws, tax policies, and SEZ regulations to ensure smooth GCC operations.
5. Key Strategies for Companies Looking to Expand Their GCCs in India
To ensure a successful GCC expansion in 2025, businesses should focus on these strategies:
a) Choosing the Right Location
- Tech & R&D GCCs: Bengaluru, Hyderabad, Pune
- Financial Services GCCs: Mumbai, Gurugram
- Manufacturing & Supply Chain GCCs: Chennai, Indore
- Emerging Talent Hubs: Kochi, Chandigarh, Jaipur
b) Prioritizing AI & Automation in GCCs
Leveraging AI, RPA, and blockchain can help GCCs achieve higher efficiency, cost savings, and competitive advantage.
c) Strengthening Employee Upskilling & Retention
With India’s high GCC employee churn rate, companies should:
- Offer competitive salaries & benefits.
- Invest in AI-driven learning platforms for upskilling.
- Provide hybrid work flexibility to attract top talent.
d) Ensuring Compliance with Indian & Global Regulations
Setting up robust data protection policies, cybersecurity frameworks, and GDPR-compliant processes is crucial for sustainable GCC growth.
Conclusion: What the Future Holds for GCCs in India
The GCC market in India is set to expand rapidly in 2025, driven by AI-led innovation, industry-specific specialization, and deep-tech R&D investments. Companies planning to expand their GCC operations in India must adopt a strategic approach, embrace automation, and invest in talent retention to stay ahead in this highly competitive market.
With India positioned as the world’s leading GCC hub, 2025 presents a golden opportunity for MNCs to leverage India’s strengths for long-term success in the global market.
