India has solidified its position as the leading hub for Global Capability Centres (GCCs), serving as a strategic base for innovation, efficiency, and cost-effectiveness. Hosting over 1,700 GCCs and employing more than 1.9 million professionals, India has become indispensable to global corporations.

With a thriving ecosystem, unparalleled talent pool, government support, and a focus on innovation, India offers unmatched advantages for companies looking to establish or expand their GCCs.

Let’s explore what makes India the ultimate destination for GCCs.

A Thriving Ecosystem for GCCs

India’s ecosystem for GCCs has evolved from being a back-office hub to a powerhouse of innovation and strategy.

Established Presence

India has long been synonymous with outsourced services, but its GCC ecosystem has transitioned into a global innovation network. Cities like Bengaluru, Hyderabad, and Pune now host some of the largest GCCs, spanning industries such as Banking, IT, healthcare, retail, industrial and e-commerce.

Diverse Industry Representation

The GCC ecosystem in India caters to multiple sectors, including banking, pharmaceuticals, and retail. These centres are integral to their parent companies, contributing not only to cost savings but also to strategic decision-making.

Supportive Infrastructure

India boasts an extensive network of IT parks, co-working hubs, and SEZs (Special Economic Zones), offering companies world-class facilities to establish their operations.

One interesting thing about the Indian GCC ecosystem is that India accounted for 50% of new GCC setups globally in 2022.

Collaborative Ecosystem

India’s GCCs thrive alongside universities, tech hubs, and a dynamic startup culture. Companies collaborate with startups to co-develop cutting-edge technologies, creating a mutually beneficial environment.

Talent Pool Advantage

India’s biggest draw for GCCs is its vast and highly skilled workforce, which combines technical expertise with cultural adaptability.

Highly Skilled Workforce

India produces over 1.5 million engineers annually, making it one of the world’s largest sources of technical talent. The workforce excels in areas like software development, data analytics, and automation, which are crucial for GCC operations.

Indian professionals are known for their proficiency in cloud computing, machine learning, and blockchain technologies.

Cost-Effective Talent

Compared to Western markets, hiring in India is significantly more affordable without compromising on quality. The cost of hiring professionals in India is 30-50% lower than in the US or Europe.

This cost advantage allows companies to scale their GCC operations efficiently.

Cultural Adaptability

Indian professionals are not only proficient in English but also adept at working across diverse cultures. This adaptability ensures smooth collaboration with global teams.

GCC teams in India often manage 24/7 operations, bridging time zones to provide round-the-clock support where cultural adaptability plays a critical role.

Upskilling and Training Initiatives

India prioritizes continuous learning, with government initiatives like Skill India and corporate partnerships focusing on upskilling professionals in emerging fields. Programs by companies like Google and Microsoft have trained millions in AI, cybersecurity, and data science, ensuring a future-ready workforce.

Investing in Indian talent brings not only technical expertise but also innovation and adaptability — key drivers of success for GCCs.

Government Support and Policies

India’s government actively fosters a favourable environment for global corporations to set up GCCs, offering incentives and simplifying business processes.

Favourable Business Environment

Initiatives like “Make in India” and “Digital India” encourage foreign investment and technology development. These policies have made India a magnet for global corporations looking to establish a long-term presence.

The Indian government’s push for digital infrastructure has attracted companies focusing on IT and innovation-driven sectors.

Tax Benefits and Incentives

Establishing GCCs in India comes with many tax benefits and incentives for corporations. Special Economic Zones (SEZs) offer tax exemptions, reduced tariffs, and other benefits to GCCs. GCCs operating in SEZs enjoy a 100% income tax exemption for the first five years, significantly reducing operational costs.

Ease of Doing Business

India’s ranking in the World Bank’s Ease of Doing Business index improved from 142nd in 2014 to 63rd in 2022, reflecting reduced bureaucratic hurdles and streamlined processes. Simplified procedures for company registration and compliance make setting up GCCs faster and more efficient.

Collaborative Governance

The Indian government regularly engages with global corporations to ensure that policies align with industry needs. Forums like the India Global Innovation Alliance encourage dialogue between policymakers and corporate leaders, fostering a collaborative environment.

Innovation and Digital Transformation

India has become a global leader in digital transformation, positioning itself as an essential hub for innovation-driven GCCs.

Technology Hub

India’s expertise in IT and software services makes it an attractive location for GCCs focusing on digital transformation. GCCs in India contribute to advancements in AI, machine learning, and blockchain, driving innovation for their global operations.

Focus on R&D

Many GCCs have shifted from back-office operations to R&D centres. For example, Microsoft’s R&D centre in Hyderabad is one of its largest globally, working on cloud computing and AI technologies.

Startup Ecosystem Synergy

India’s vibrant startup ecosystem complements GCC innovation. Collaborations with startups give GCCs access to emerging technologies and agile methodologies. With over 1,40,000 startups, India is one of the largest startup ecosystems globally.

Ready Digital Workforce

India’s workforce is well-versed in technologies like IoT, big data, and cloud computing, enabling GCCs to remain competitive. GCCs in India often pilot advanced analytics projects before scaling them globally.

Setting up a GCC in India allows companies to harness the innovative spirit of a dynamic ecosystem while driving global digital transformation.

Conclusion

India’s thriving ecosystem, vast talent pool, supportive government policies, and focus on innovation make it the ultimate destination for setting up GCCs.

Companies can achieve cost savings, operational efficiency, and strategic innovation by leveraging India’s unique strengths.

As global corporations continue to expand their footprints, India remains the go-to hub for GCCs, offering a blend of resources, infrastructure, and opportunities that are unmatched.