(This is for information purposes only. This should not be construed as a recommendation or investment advice even though the author is a CFA Charterholder. Please consult your financial adviser before taking any investment decision. Safe to assume the author has a vested interest in stocks / investments discussed if any.)
(Update 26Jan2026 is available at the end of the blog)
Global Capability Centres (or GCCs) are office establishments used by global companies (or multinational companies) that concentrate workers and infrastructure at GCCs and use them for a variety of functions, like:
back-office functions,
corporate business-support functions,
contact centers and help desks,
IT support functions like, app development and maintenance, and
remote IT infrastructure.
These are sometimes called as Centres of Excellence.
These GCCs are also used for automation, innovation and business analytics. The global practice of offshoring has enabled India as a magnet since the early 2000s.
After and during the COVID-19 Pandemic, the race for setting up GCCs has accelerated. The Pandemic disrupted several businesses globally forcing them to focus their efforts through GCCs in order to improve productivity, achieve economies of scale and efficient use of resources. GCCs are pivotal for business continuity.
India: World’s GCC Capital:
Countries like India, the Philippines, and Poland are popular locations for these centres due to their skilled workforce, cost efficiencies, and supportive business environments. India is a leader in GCCs and is considered as world’s GCC capital.
India’s prominence has been growing as a key destination for global business expansion.
As of March 2024, India has 1,700 GCCs and the total GCC units in India are 2,975. In 2019, India had 1,285 GCCs and 1,850 GCC units.
The break-up of GCC Units is as follows:
875 Bangalore
465 NCR
365 Bombay
360 Pune
355 Hyderabad
305 Madras
220 Others
Bangalore, National Capital Region of Delhi and Bombay are leading the pack. Tier 2 cities, like, Coimbatore, Ahmedabad and Baroda are emerging as key hubs.
Over 19 lakh workers have been employed in these centres.
Nearly 23 per cent of Global 2000 MNCs have set up their GCCs in India as of now.
Some of the global companies that have set up GCCs in India are: Accenture, Cognizant, IBM, Deloitte, EY, HSBC, JP Morgan Chase, Dell Technologies, Siemens, Wells Fargo and GE.
The US-headquartered hospitality firm Marriott International is establishing a new tech accelerator in Hyderabad, India which is expected to open in early 2025 and will be the company's first overseas global capability centre (GCC).
Last week, Karnataka state government unveiled a plan to double the GCCs by 2029 and it plans to offer a variety of incentives for MNCs (multinational companies). The government further wants to encourage setting up GCCs in tier 2 and 3 cities, like, Mysore, Hubli and Mangalore -- looking beyond Bangalore.
Uttar Pradesh state government is also drawing up plans for establishing GCCs in the state.
Gujarat state government’s Semiconductor Policy 2022-2027 has promoted physical and digital infrastructure – encouraging in setting up more GCCs.
A major portion of the growth of GCCs in India is accounted for by Engineering and R&D services. The main attraction for GCCs is India’s talent pool and cost advantages.
These centres typically focus on areas such as: Technology Innovation, IT Services, Finance and Accounting, Human Resources, Research and Development and Customer Support.
According to a report by Nasscom-Zinnov, 70 per cent of Fortune 500 companies will expand their presence to India by 2030.
The current revenue from GCCs in India is about USD 65 billion and it is expected to touch USD 100 billion by 2030.
MNCs that have set up GCCs in India between 2019 and 2024 are:
Conditions required for setting up a GCC:
Talent Pool: You need to attract skilled professionals; and you train and develop programmes for upskilling employees.
Infrastructure: Office space is needed with IT systems, cyber security apparatus and communication tools.
Government policy: Stable policies and incentives are required to encourage global firms to set up their shop.
It is expected that global capability centres will play a big role in India's economic growth in the next 10 years.
P.S.: The following update is added on 26Jan2026 after the blog was written on 07Oct2024:
Update 26Jan2026:
Technology is now a core driver of global companies' business.
Many global companies have been setting up offices (called global capability centres or GCCs) for their core functions in India in recent years (a curated list of such companies that opened up GCCs in India in 2025 is given below).
Among them is a big retail giant from the US, Costco.
If a company like Costco Wholesale only wanted to ‘fix bugs’ in its legacy systems, it could have stuck with an outsourcing partner.
By launching a dedicated GCC in Hyderabad in 2025, it’s signaling that Technology is now a core driver of its business, not just a back-office function.
Threat and Opportunity of GCCs for Indian legacy IT software companies:
Global capability centres directly erode the revenues of listed Indian IT firms by insourcing high-margin innovation and discretionary projects previously outsourced to third-party vendors (like IT firms in India).
The intense competition for talent has ignited a wage war where global capability centers offer significant salary premiums, forcing listed IT companies to increase compensation and accept lower operating margins.
Major global corporations are shifting away from traditional vendor relationships to gain absolute ownership over their intellectual property and data, particularly for core AI and digital engineering initiatives.
Listed IT firms are attempting to recapture lost revenue by pivoting to a GCC-as-a-service model, where they earn consulting and management fees by helping their own former clients build and operate these internal hubs.
While individual market shares are being cannibalised, the collective expansion of global capability centers has pushed India's total tech export pool toward a milestone of 300 billion dollars by 2026.
GCCs pose a severe threat by cannibalising high-margin innovation projects and outbidding legacy firms, like, Infosys and Tech Manindra, for tech talent, which puts significant pressure on traditional outsourcing margins.
Conversely, GCCs create a strategic opportunity for legacy firms to reinvent themselves as "GCC Enablers" by providing specialized consulting and Build-Operate-Transfer services to global corporations entering India.
Compare and contrast GCCs in India versus Indian IT Software Services exporters, like, TCS, Wipro and Coforge >
GCCs build products and platforms for one global parent; legacy IT firms deliver projects for many external clients.
GCC roles offer deeper end-to-end ownership; IT firms focus more on limited, task-focused delivery and execution.
GCCs invest heavily in AI, cloud and core engineering; IT firms still balance modern tech with legacy work.
GCC careers reward technical depth and product thinking; IT firms reward scale, process and people management.
Chart >
Announcements by major global companies to set up their global capability centres in India in 2025 and later:
Timeline of new GCCs being opened in India >
Jan2026: L’Oreal to set up GCC in Hyderabad
Jul2025: Costco Wholesale chooses Hyderabad to set up its first GCC
Dec2025: Charles Schwab to Open GCC in Hyderabad
Oct2025: Southwest Airlines to establish its global innovation centre in Hyderabad
Jul2025: LTIMindtree Launches GCC-as-a-Service
Jun2025: Netherlands-based Heineken to set up GCC in Hyderabad
Apr2025: Vanguard chooses Hyderabad to set up its first GCC in India
Mar2025: Germany-based semiconductor manufacturer Infineon Technologies in GIFT City, Gujarat
Mar2025: McDonald’s chooses Hyderabad to set up global capability centre
Feb2025: Infosys to open global capability centre (GCC) in Bangalore for Lufthansa Group
Jan2025: Eli Lilly to set up global capability centre in Hyderabad
Nasscom-Zinnov Report Sep2024: India GCC Landscape Report
Disclosure: I've got a vested interest in Indian stocks and other investments. It's safe to assume I've interest in the financial instruments / products discussed, if any.
Disclaimer: The analysis and opinion provided here are only for information purposes and should not be construed as investment advice. Investors should consult their own financial advisers before making any investments. The author is a CFA Charterholder with a vested interest in financial markets.
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