India’s Global Capability Centre sector is expanding beyond traditional outsourcing, giving the country a growing role in the technology, research and product-development operations of multinational companies.
India hosts more than 1,700 GCCs employing around 1.9 million professionals and generating USD 64.6 billion in annual revenue, according to the Government of India.
A Nasscom–Zinnov study projects the industry will grow to between USD 99 billion and USD 105 billion by 2030, with employment potentially reaching 2.8 million. Reuters reported that India could host between 2,100 and 2,200 GCCs by then.
Once used mainly for accounting, customer service and back-office operations, the centres now work in artificial intelligence, cybersecurity, semiconductor design, pharmaceutical research, financial-risk management and product engineering.
The shift allows American and European companies to access India’s large engineering and technology workforce while reducing development costs and addressing shortages of specialised professionals. Asian companies can also combine their manufacturing capacity with India’s strengths in software, research and engineering.
This could accelerate developments in banking, healthcare, electric vehicles, telecommunications, electronics and advanced manufacturing. It also helps multinational companies distribute critical operations across different locations and time zones.
Indian states are competing to attract a larger share of the industry. Karnataka plans to double its GCC count to 1,000 and create 350,000 jobs by 2029, while other states are offering infrastructure support and investment incentives. Reuters
Bengaluru and Hyderabad remain the leading destinations, but companies are increasingly considering smaller cities because of lower costs and expanding talent pools.
The growth could intensify competition for established technology and outsourcing destinations in Asia and Eastern Europe. It also creates concentration risks, as cyberattacks, infrastructure failures or regulatory changes in India could disrupt the international operations of companies relying heavily on their Indian centres.
Despite those risks, the expansion is helping India move from conventional outsourcing into higher-value research and innovation, with consequences for industries and employment markets across Asia, Europe and the United States. (Source: News syndicate)
