Shaping the Future: The Evolution of GCCs in India

As we prepare to wrap up 2024, it is clear that this year has been transformative for India’s Global Capability Centers (GCCs) ecosystem. With over 400 new GCCs established since 2019, the total now exceeds 1,700, reaffirming India’s position as the “GCC Capital of the World.” These centers contribute $64.6 billion in revenue and employ over 1.9 million professionals, with projections aiming for $105 billion and 2.8 million jobs by 2030.

With India transforming into a knowledge-driven economy, GCCs are emerging as pivotal drivers of innovation, talent development, and global competitiveness. These centers are no longer just cost-efficient support hubs—they are strategic powerhouses contributing to high-value research, innovative products, and sustainable growth.

At Caterpillar in India, Cat Digital saw its headcount increase by 900%. A remarkable feat. This India-based GCC collaborates with global teams to co-develop innovative digital solutions, bringing modern technologies and ways of working to the industry.

Empowering Talent and Innovation The backbone of any successful GCC is its talent, which is a function of its capacity for innovation. I think of innovation as a two-way street: innovation at GCCs attracts talent, and conversely, talent brings new perspectives and drives innovation. At its core, the availability of skilled talent in India is what drives the immense growth of GCCs.

India’s GCCs have also introduced modern technologies, processes, and global standards that set new benchmarks for organizations across the country. This ripple effect has spurred local innovation and the growth of startups that address GCC challenges, contributing significantly to the broader ecosystem.

Beyond Tier-I Cities Another remarkable shift is the geographic distribution of GCCs. While traditional hubs like Bengaluru remain prominent, GCCs are expanding into Tier-II cities, creating a distributed and positive economic impact. Skilled talent is no longer confined to metropolitan areas, and this diversification helps unlock the potential of previously untapped regions.

Looking Ahead The journey of GCCs in India is a story of evolution and opportunity. While challenges such as regulatory complexities and operational integration remain, the transition of GCCs from cost centers to profit centers highlights their growing strategic importance.

To me, the true cornerstone of success for GCCs lies in the right talent equipped with deep domain expertise and an ownership mindset. The future of GCCs is bright, and I am excited to see what the next couple of years bring!