The evolution of Global Capability Centers (GCCs) has been nothing short of remarkable. As GCCs continue to shape India’s economic landscape, their impact goes beyond numbers. No longer just cost-optimization units, they have transformed into strategic hubs that drive operational excellence, promote global collaboration, invest in skill development, create high-value jobs and foster innovation.

In India, GCCs have shifted from traditional back-office functions to becoming integral players in global tech eco-system. Today, they operate as advanced tech and non-tech hubs deeply embedded within their parent organizations, serving as strategic assets that generate long-term, sustainable value. Amidst an increasingly uncertain and volatile global economic landscape, GCCs are proving to be indispensable, helping enterprises navigate complexities and emerge stronger. Their rapid expansion and rising influence are not just a passing trend — they are a testament to their critical role in shaping the future of global business.

The buzz around GCCs is quite pronounced and highly warranted backed by a host of compelling reasons as follows:

Great compensation, benefits and work environment

GCCs have established themselves as excellent paymasters and providers of great working environment that is conducive to fostering personal and professional growth. Additionally, for a variety of roles, they have typically offered higher salary increments than Indian IT service firms, aiming to retain top talent essential for sustaining rapid growth and deliver even greater value for their parent organizations.

Commercial real estate sector growth

Global Capability Centers (GCCs) are becoming a pivotal force in shaping India’s commercial real estate sector. Currently, they occupy a significant share of premium office space across the country’s top real estate markets, with demand set to surge as more GCCs establish their presence in major cities.

As one of the primary growth drivers, GCCs now account for nearly 30% of office space leasing, significantly influencing market dynamics and reinforcing their critical role in the sector’s expansion.

To support this growth, GCCs are investing in modern, high-quality, and sustainable office spaces designed for collaboration, innovation, and a dynamic work environment that meets the evolving needs of today’s workforce. In response, the Indian real estate market is rapidly adapting, developing specialized office spaces tailored to the unique requirements of GCCs.

Employment generation and Upskilling

Indian GCCs have created a fascinating case for global enterprises to recognize and leverage India’s enviable talent pool. This has created more tech and non-tech jobs in India and further reinforced India’s position as a hub for cutting-edge technological development.

GCCs currently employ around 2 million people, a number expected to grow significantly over the next 5 to 10 years. Projections indicate that by 2030, GCCs will employ over 3 to 4 million professionals. As hundreds of GCCs reach critical scale, this growth trajectory is only set to accelerate.

With several states introducing dedicated GCC policies, the emphasis on skilling and job creation is becoming even stronger. Additionally, the national framework announced in the recent Budget will further bolster India’s growing GCC ecosystem by enhancing talent availability and infrastructure development, particularly in Tier 2 cities.

One key challenge to address is with rapid setup time of GCCs, it leads companies to seek talent that can onboard quickly or within a short period. With increasing state-level focus and initiatives, the talent pipeline is expected to become more responsive, ensuring a steady supply of skilled professionals to meet growing demand.

Also, GCCs have become exceptional talent incubators, especially for engineers, finance, and HR professionals, driving workforce upskilling at scale. They offer outstanding learning and career growth opportunities, while also creating unparalleled avenues for mid and senior-level executives to step into global leadership roles.

Contribution to India’s Economy

Global Capability Centers (GCCs) are becoming one of the key pillars of India’s economic growth, reinforcing the country’s strategic position as a global leader in technology services. India now dominates the global value chain in technology services, solidifying its status as a preferred destination for innovation and talent.

The country’s thriving services sector, particularly software services, is a major driver of economic growth, with GCCs playing an increasingly significant role. They are also playing an important role in a transformative shift in India’s trade dynamics, where services exports now account for nearly 80% of goods exports. This shift is particularly impactful as services exports generate higher net earnings, free from the cost of imported components typical in goods trade.

According to the Economic Survey 2024, GCCs are projected to generate $121 billion in revenue by 2030—equivalent to approximately 3.5% of India’s current GDP—with $102 billion expected to come from exports, further cementing their contribution to the nation’s economic trajectory.

Innovation catalysts for Global Enterprises

In an era of rapid technological advancements and evolving business needs, enterprises are constantly exploring new ways to optimize operations, enhance efficiency, foster innovation, and drive long term value. As Indian GCCs increasingly evolve into microcosms of their parent organizations, they are uniquely positioned to spearhead enterprise-wide transformation.

These centers have become talent powerhouses, particularly in high-growth areas such as data science, full-stack development, AI, IoT, and hyper-automation. Mature GCCs are expanding their expertise beyond core technology functions, developing deep domain capabilities in product management, architecture, and strategic operations. This evolution enables them to deliver higher-value work while gaining a more comprehensive understanding of business contexts and workstreams. Beyond operational excellence, today’s GCCs are making a profound impact in R&D, data analytics, AI, and digital transformation. Many mature GCCs are now shifting their focus from cost efficiency to value creation, with some delivering 3X-5X returns on the investments made by their parent organizations.

In conclusion, India’s rise as a global GCC hub marks a transformational shift across multiple dimensions. With its vast talent pool, rapid technological adoption, the ability to deliver scalable, cost-effective solutions, the country is solidifying its leadership in the global GCC ecosystem. As more enterprises recognize the strategic advantages of GCCs, India is not just keeping pace—it is firmly on course to becoming the GCC capital of the world.

Sanjay Dora, CEO and Co-founder – Sansovi

Sansovi is end to end GCC solutions platform unifying talent, technology, innovation and infrastructure to empower businesses with seamless GCC setup and transformative operations.