GCCs are rapidly expanding in India, bringing global challenges to our doorstep while leveraging Indian talent for solutions. According to NASSCOM, approximately 364,000 new jobs are anticipated in this sector by 2025. Initially established for cost efficiency, Global Capability Centers (GCCs) have evolved into hubs of innovation, adding new capabilities and teams at a breakneck pace.
Shonalie Gupta, Co-Founder of The People IQ Advisory, a fast-growing HR and talent strategy firm, has over two decades of experience in leading large workforces. She observes that India’s GCC landscape is undergoing rapid transformation, offering companies a strategic advantage in the global economy. The sector is projected to reach USD 110 billion by 2030, attracting mid-size US and UK firms, not just large enterprises. The appeal is no longer just cost benefits but also India’s highly skilled workforce.
"Initially, GCCs in India handled operational tasks at lower costs compared to the US or Europe," Shonalie explains. "However, over time, they became centers for innovation, leveraging India’s talent in AI, data science, cybersecurity, and cloud computing. Today, companies like Target, Bank of America, and HSBC use GCCs to prototype new solutions, test emerging technologies, and take calculated risks that might not be feasible in their home markets."
The BFSI sector pioneered the adoption of GCCs, but now industries from retail to hospitality and airlines are investing in them. "Everyone needs a core technology play," Shonalie notes. "Software companies and banks were early movers, but now automotive, engineering, retail, and even food chains are entering the fray. Digital transformation is a priority for Fortune 500 companies, making skills in DevOps, application development, data analytics, cloud computing, cybersecurity, and AI highly sought after."
Several factors contribute to the GCC boom in India. Government policies, plug-and-play real estate, efficient local partners, and untapped potential in tier-II cities play a crucial role. Karnataka has announced a dedicated GCC policy, Telangana has been proactive, and GIFT City Ahmedabad is offering strong incentives.
"Real estate is another key driver," Shonalie adds. "Following the DLF model in Gurgaon, world-class infrastructure has emerged in Hyderabad, Bangalore, Mumbai, and Gurgaon. There’s still significant untapped potential in cities like Nagpur, Jaipur, and Coimbatore. But the real reason for GCC growth is India’s ability to provide talent at scale and long-term cost efficiency."
Despite their success, GCCs face HR challenges. The long notice period in India—typically two months compared to two to four weeks elsewhere—slows hiring. "An Australian tech leader told me that for a niche role, he gets 8-10 applicants in Melbourne, of which five are relevant," Shonalie shares. "In India, he gets 20-30 relevant applicants, offering better choices. But the long notice period complicates hiring, as candidates often use it to negotiate elsewhere, leading to offer dropouts. India Inc. needs to rethink its approach to make hiring timelines more competitive."
GCCs are here to stay and will play a significant role in shaping India’s work culture. As global corporations continue investing in India, GCCs will not only absorb talent but also define the qualitative evolution of India’s workforce in the years ahead.
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