In a world where digital is no longer optional and businesses are expected to evolve at the pace of innovation, Global Capability Centers (GCCs) are no longer back-office operations; they’re strategic engines. Multinational corporations (MNCs) aren’t just outsourcing for savings anymore. They’re building deeply integrated hubs that drive agility, enable product acceleration, and support enterprise transformation from the inside out.
India, with its rich tech ecosystem and deep talent pool, has emerged as the heartbeat of this shift. As of early 2025, the country hosts more than 1,700 GCCs employing close to 1.9 million people; a figure projected to surge past 2.8 million by 2030. The question for global firms isn’t whether to set up a GCC, but how to get it right.
This article takes a closer look at the Global Capability Center model: what it is, how it’s evolved, what it enables, and why it’s become a cornerstone of global business strategy.
Defining the Global Capability Center
Think of a Global Capability Center, also known as a Global In-house Center (GIC) or Captive Center, as a fully owned offshore or nearshore unit of a multinational company. It’s not outsourcing in the traditional sense. These centers offer full control, seamless alignment with enterprise goals, and complete ownership of the work and the IP it generates.
The early versions of GCCs focused on predictable support functions such as IT tickets, customer service, and finance operations. But those days are long gone. Today’s GCCs are running enterprise-grade systems, developing digital products, designing AI models, and anchoring global R&D.
In many firms, these centers aren’t just aligned with strategy—they help define it.
From Transactional to Transformational: The Evolution of GCCs
The story of GCCs begins in the 1990s. Back then, the model was straightforward: move repeatable, rules-based tasks offshore to reduce costs. India, with its engineering talent and cost advantage, became the obvious choice. The early GCCs were transaction-driven, focused on support desks, data entry, claims processing.
But as India’s digital infrastructure matured in the 2000s, so did expectations. The second wave brought in software engineering, advanced analytics, and domain-specialized functions. Policy moves like the Special Economic Zones (SEZs) and growing onshore-offshore collaboration helped push this shift forward.
Since 2015, we’ve entered a third wave. Today’s GCCs are innovation hotbeds. AI labs, cloud-native platforms, and cyber defense teams are all being built and scaled out of India.
Look at JPMorgan Chase’s setup in Bengaluru. What began as a traditional IT support base now powers core AI research shaping global risk and compliance frameworks. That’s the arc of transformation.
Core Functions Delivered from GCCs
The range of responsibilities handled by GCCs has expanded dramatically. What started as function-specific support has evolved into a wide-ranging operational backbone that cuts across business lines, domains, and geographies.
Below are the most common service areas:
Technology and Engineering
- Application development and testing
- DevOps and cloud platform engineering
- Cybersecurity and threat detection
- Enterprise architecture and systems integration
Data, Analytics, and AI/ML
- Predictive modeling and forecasting
- Cognitive automation
- Natural language processing (NLP) solutions
- AI/ML model development and training
Finance and Risk
- Financial reporting and consolidation
- Regulatory and statutory compliance
- Treasury operations
- Internal audit and risk analytics
Human Resources
- Global recruitment and onboarding
- Payroll processing and workforce analytics
- Learning and development (L&D) systems
Customer Experience
- Omnichannel contact center operations
- Customer journey mapping
- UX/UI design and service personalization
Research & Development
- Prototyping and simulation
- Intellectual property management
- Emerging tech research (e.g., quantum computing, 5G)
These functions show why GCCs are increasingly treated not just as support entities but as co-innovation partners and transformation catalysts.
India: The Global Hub for GCCs
India’s lead in the GCC space is not by accident. As of 2025, India has 1,700+ operational GCCs with 1.9 million employees. That number is expected to reach 2.8 million by 2030.
A recent industry report projects 425,000–450,000 new GCC jobs in 2025 alone, driven by BFSI, manufacturing, and retail-tech sectors.
Regional Employment Breakdown (2025)
- Bengaluru & Chennai: 29%
- Hyderabad: 23%
- Pune: 32%
- Mumbai: 19%
- Delhi NCR: 16%
Pune’s rise is especially notable—mid-sized GCC companies are picking it for its cost efficiency and access to high-quality engineering talent.
Strategic Advantages of the GCC Model
What makes GCCs compelling?
- Cost Optimization – 30–50% savings vs. developed markets
- Talent Abundance – 1.5M+ STEM grads annually
- Innovation at Scale – Co-location of engineering, analytics, and design
- Operational Control – Full visibility into workflows and compliance
- Enterprise Agility – Rapid prototyping and market responsiveness
- Strategic Talent Development – Pipeline for next-gen global leaders
Key Factors in Setting Up a GCC
Establishing a high-performing GCC requires careful alignment between business strategy and operational execution. Key factors include:
- Alignment with Business Strategy
- Defined Scope of Services
- Talent Availability
- Technology Infrastructure
- Organizational Integration
- Leadership Pipeline
Choosing the Right Location
Location plays a pivotal role. Consider:
- Talent Ecosystem
- Cost Structure
- Infrastructure Readiness
- Government Incentives
- Quality of Life
- Scalability Potential
Legal and Regulatory Compliance
Foundational to long-term success. Areas of focus:
- Entity formation & taxation
- Local employment laws
- Data privacy & cybersecurity
- IP protection
- Transfer pricing compliance
- Regulatory licenses and approvals
Challenges in the GCC Sector
GCCs still face critical challenges:
- Talent Attrition – High tech turnover
- Regulatory Compliance – Tighter data rules
- Leadership Gaps – Need for global-ready leaders
- Tier-2 Infrastructure – Emerging cities need ecosystem maturity
- Governance – Risk of innovation silos without integration
Spotlight: Leading GCC Companies
Examples of high-performing GCCs:
- Google – Cloud & AI innovation in Hyderabad
- Amazon – GCCs for AWS and logistics
- Goldman Sachs – Risk analytics & cybersecurity in Bengaluru
- Unilever – Global digital marketing from India
The Future of Global Capability Centers
Valued at $128.5B in 2023, the global GCC sector is projected to surpass $300B by 2032 (13.51% CAGR).
Key Trends
- AI-Powered GCCs
- Sustainable GCCs
- Tier-2 City Expansion
- Strategic Workforce Models
GCCs have evolved from cost centers to strategic transformation hubs. For organizations eyeing global expansion, GCCs offer a scalable, sustainable path to innovation and resilience.
As we move toward 2030 and beyond, GCCs won’t just support global business—they will redefine it.