nasscom in partnership with Zinnov released a comprehensive five-year landscape report on the Global Capability Centers (GCC) ecosystem. The report does a detailed deep dive on the GCC sector in India across growth levers, talent transformation, ecosystem partnerships, and digital capabilities including AI.
The last 5 years have seen a rapid expansion in the GCC ecosystem, and India remains well-positioned for future growth through prioritization on skills development, cybersecurity, and progressive policy frameworks. The country’s emphasis on high-end engineering roles and strategic partnerships also enables it to meet the evolving needs of global companies, fostering sustainable practices and driving innovation.
GCC landscape
⦁ Between FY2019 and FY2024, more than 400 new GCCs and 1,100 new centers have been established in India, bringing the total number of GCCs to over 1,700.
⦁ As of FY2024, GCCs in India generate $64.6 billion in export revenue and employ over 1.9 million people.
⦁ The average GCC talent has expanded by ~24% since FY2019 and is estimated at 1130+ employees in FY2024.
⦁ Over 90% of the GCCs operate as multi-functional centers, supporting technology, operations, and product engineering.
⦁ India is the “GCC Capital of the World” with the largest base of 17% of global technology capability centers
⦁ While the initial wave of GCC growth was driven by large enterprises, more mid-market enterprises and unicorns are also setting up GCCs in India. Around 40 global unicorns have an India GCC presence as of 2024.
⦁ Although the Indian GCC landscape has become more diverse, the Americas continue their dominance with over 1000+ GCC units.
⦁ Over 220 GCC units are housed in emerging locations (Tier-II and Tier-III cities) in the country. Ahmedabad, Kochi, Thiruvananthapuram, and Coimbatore are building critical mass.
GCC maturity roadmap
The report highlights the GCC Maturity Roadmap and showcases how GCCs have moved up the maturity scale, with almost 53% of GCCs in the Portfolio and Transformation Hub stages. This is demonstrated by the following facts –
⦁ ER&D GCCs, contributing $36.4 billion in revenue, have grown 1.3 times faster than the overall GCC growth rate, indicating a shift towards higher-value work.
⦁ Over the past five years, Global Roles in India have expanded significantly, with more than 6,500 such positions now established. Interestingly, this includes 1100+ women leaders holding Global Roles.
⦁ Nearly a quarter of global engineering roles are now based in India, with industries like Aerospace, Defense, and Semiconductor focusing on next-generation technologies. Additionally, Semiconductor firms and tech multinationals are increasingly establishing product teams in India, fostering innovation.
⦁ Multiple partnership models with Service Providers enable GCCs to accelerate their journey. Risk mitigation, capability augmentation, leveraging sector best practices, a symbiotic partnership is being built in the ecosystem.
GCCs leading the AI transformation
Given the exponential growth of AI and its potential to impact all products and services, GCCs in India are increasingly focused on building AI capabilities and driving the AI transformation for their internal enterprise. Capabilities include:
⦁ Talent pool of over 120,000 AI professionals, with 30% of AI COEs housed in Software & Internet GCCs.
⦁ Over 185+ GCCs have set up dedicated AI / ML COEs and are building myriad use cases across customer experience, risk assessment, demand forecasting, model deployment, and coding assistants.
⦁ More mature GCCs are further developing expertise in full-stack development, AI, IoT, and cybersecurity to create advanced solutions for both global and emerging markets.
Sindhu Gangadharan, Chairperson, nasscom, said, “GCCs have rapidly evolved from being operational hubs to becoming true engines of innovation and strategic growth. Their maturity in digital capabilities, engineering excellence, and advanced technology solutions is truly remarkable. As they advance along the maturity curve, they are increasingly positioned to lead global agendas, secure critical managerial roles, and shape decision-making processes, setting the stage for India to become a global leader in digital transformation and sustainable business practices.”
Pari Natarajan, CEO, Zinnov spoke about the future of the GCC Landscape saying, “India has undeniably become the GCC capital of the world. Today we have more than 1700 GCCs in India with more than 1.9 million installed talent. And it’s not just the scale. India’s GCCs are also driving high-value charters, where we are witnessing a shift towards portfolio and transformation hubs, with increasing product ownership from India. The new digital tech narrative, including Gen AI, automation, and productivity charters, is being largely driven through the Centers of Excellence model. What’s truly exciting is how India has become a microcosm of global organizations. Every business unit and function now, has some representation here, making our GCCs the nerve centers of global tech advancement. This critical mass is reshaping global innovation dynamics. As we look ahead to 2030, we expect that 70% of Fortune 500 companies will be expanding their presence to India. The writing is on the wall – India is no longer just participating in the global tech narrative – we’re authoring it.
GCC growth outlook
By 2030, the GCC market in India is estimated to grow to $99-105 billion, with the number of GCCs reaching 2,100-2,200 and headcount rising to 2.5-2.8 million. With a strong focus on innovation, these centers have the potential to transform into sandboxes for solutions tailored to diverse markets. They can unlock new growth by monetizing “India to India” services, leveraging local market insights, and expanding their domestic footprint. GCCs can lead the charge in embedding
