How GCC’s Are Turning The Game Around For India From Big Bet Cites To Smaller. Which Countries Are Challenging India’s Supremacy In This Space?

India’s Global Capability Centres or GCC’s are on a winning streak, and the numbers speak for themselves. Projected to grow into a $100 billion industry by 2030, these centres are transforming the global corporate scenario while creating opportunities back home. Employing over 1.9 million professionals today, the sector is already raking in a hefty $64.6 billion in annual revenue.

But that’s just the beginning, let us look into how GCCs are rewriting India’s success story.

Not Just Service Providers Anymore

Gone are the days when GCCs were seen merely as back-office support hubs. Over the past five years, more than half of these centres have stepped up their game, evolving into strategic transformation hubs. They now handle high-impact functions ranging from R&D and innovation to portfolio management.

According to a recent report, the GCC industry in India is forecasted to employ over 2.5 million professionals by 2030. This growth isn’t just about numbers—it’s about significance. These centres are becoming critical cogs in the machinery of global operations, proving that India is much more than just a cost-efficient option.

AI Is The Secret Sauce

The buzzword? Artificial Intelligence. By 2026, over 70% of India’s GCCs are expected to incorporate advanced AI technologies. Imagine machine learning driving operational analytics, AI-enabled customer support enhancing user experiences, and cutting-edge R&D paving the way for the future.

This focus on technology isn’t just a feather in the cap for GCCs—it’s the entire crown. India’s knack for innovation is turning these centres into global frontrunners.

Why India? Cost + Quality = Win-Win

One of India’s strongest cards is its unbeatable cost advantage. Operational expenses here are up to 40% lower than in Eastern Europe. But it’s not just about the savings; companies are getting top-notch quality as well.

“India’s highly competitive cost structure spans across labour, infrastructure, and operational expenses, making it a compelling destination for corporations prioritising cost efficiency without compromising on quality,” says the report.

And there’s more. Establishing GCC operations in India is like buying an insurance policy against regional disruptions. It’s a risk diversification strategy that ensures uninterrupted operations while fostering cross-border collaboration.

The Voices Behind the Revolution

This optimism isn’t based on a hunch. The report comes from comprehensive surveys involving over 100 GCC leaders in India, along with deep dives into industry data and expert insights. The collective verdict? India’s GCC sector is not just growing—it’s soaring.

India’s Global Capability Centres (GCCs) are breaking boundaries, literally. While the likes of Bengaluru, Hyderabad, and Pune continue to shine as tier-I stars, a quieter revolution is brewing in tier-II and tier-III cities. Emerging hubs like Ahmedabad, Kochi, Coimbatore, and Indore are stepping into the spotlight, with GCCs in non-metro locations projected to grow by 15-20% by 2025, according to data from ANSR.

The Rise of Non-Metro Hubs
Why the sudden interest in smaller cities? The answer lies in a potent mix of factors:

—Growing tech talent pools: Non-metro cities now house over a million tech professionals excelling in AI, cybersecurity, and big data.

—Favourable policies: Both the Union and state governments are rolling out incentives to attract GCCs to smaller towns. States like Uttar Pradesh and Madhya Pradesh are crafting policies to rival established hubs.

—Cost efficiency: Lower costs of living and operational expenses make tier-II and tier-III cities a compelling choice for global players.
Hybrid work models: With flexible working gaining ground, businesses are more open to setting up operations in locations beyond metros.

Talent Boom in Educational Hubs

Educational hubs in smaller cities are feeding the GCC ecosystem with a steady stream of skilled professionals. The demand for jobs in tier-II and tier-III locations is expected to grow by 35-40% in the next two years. Ahmedabad, Kolkata, Coimbatore, and Jaipur are becoming go-to locations for IT/BPM talent, while Coimbatore and Vadodara are carving niches in engineering and R&D.

However, tier-I cities are not being overshadowed. Bengaluru, Hyderabad, Pune, and Chennai remain the magnets for niche, high-end talent in specialised roles. This balanced growth ensures that GCCs have a rich and diverse talent pool across the country.

Over 1,800 GCCs, representing more than 1,400 unique global companies, have been established in India. Since 2022 alone, over 100 new centres have opened their doors, reflecting the rapid pace of growth. These centres currently occupy 240 million square feet of Grade A office space, a number expected to exceed 280 million square feet by 2026-27.

Three sectors dominate India’s GCC scene – IT/ITeS, Banking, Financial Services, and Insurance (BFSI) and Manufacturing.
Together, these sectors account for 78% of the space occupied by GCCs. This concentration underscores India’s strengths in technology, finance, and industrial expertise, making it a global leader in complex, high-value operations.

Stiff Competition And Some, Around The World

When it comes to Global Capability Centres (GCCs), India enjoys a dominant position, but competition from other countries is steadily rising.

Here’s a glimpse into the key players challenging India’s supremacy in this space –

1. The Philippines
Strengths: The Philippines is a strong contender, particularly in business process outsourcing (BPO) and customer support services. Its workforce is known for excellent English language skills and cultural affinity with Western markets, making it a preferred destination for voice-based processes.

Challenges: However, the Philippines is less competitive in areas like high-end IT services, R&D, and emerging technologies such as AI, giving India a lead in those domains.

2. Eastern Europe

Countries like Poland, Romania, Hungary, and the Czech Republic have emerged as hubs for IT services, finance, and R&D.

Strengths: Proximity to Western Europe ensures time zone compatibility and highly skilled, multilingual workforce suited for specialised IT, BFSI, and analytics roles.

Challenges: Higher operational costs compared to India.
Smaller talent pool, which limits scalability for large-scale operations.

3. China

Strengths: China boasts a strong focus on manufacturing and engineering R&D, making it a preferred choice for technology-intensive industries like automotive, electronics, and industrial equipment. Its government-backed innovation ecosystems further solidify its position.

Challenges: Limited English proficiency compared to India. Also, geopolitical concerns and global companies diversifying supply chains away from China have tempered its appeal.

4. Mexico and Latin America

Countries like Mexico, Colombia, and Costa Rica are rising as GCC destinations, especially for North American companies.

Strengths: Close geographical proximity and time zone alignment with the U.S. and a growing talent base in IT, finance, and customer service.

Challenges: Smaller talent pool and higher costs compared to India.

5. Vietnam

Strengths: Vietnam is gaining attention for its cost competitiveness and growing expertise in IT services, particularly in software development and testing.

Challenges: Limited scalability compared to India and relatively young GCC ecosystem, which needs time to mature.

6. Malaysia and Singapore

Strengths: These countries are emerging as hubs for high-end financial services, IT consulting, and regional headquarters for GCCs.
Malaysia offers cost advantages similar to India, with multilingual capabilities while Singapore attracts GCCs as a strategic location for regional leadership and decision-making.

Challenges: Smaller talent pools and higher costs in Singapore.

Why India Still Leads
India’s scale, cost advantages, and talent pool in advanced areas like AI, machine learning, and R&D make it hard to beat. Additionally, its government’s proactive GCC policies and strong ecosystem of IT/BPM and engineering expertise provide a solid foundation for growth.

While competitors are nipping at its heels, India’s ability to adapt and lead in cutting-edge technologies keeps it ahead of the curve. However, staying competitive will require continued investments in skill development, infrastructure, and policy support in the GCC sector.