What Are Global Capability Centres (GCCs)? Meaning, Examples & Growth in India

Global Capability Centres, often called GCCs, are one of the fastest-growing pillars of global business today. From banks and retailers to tech giants and engineering firms, companies across industries are setting up these centres to stay competitive in a fast-changing world.

While they started as cost-saving back-office operations in the 1990s, GCCs have now transformed into innovation hubs that handle everything from artificial intelligence and analytics to R&D and product design.

And no country has embraced this trend more than India, now considered the global capital of GCCs.

Key Highlights

• Global Capability Centres (GCCs) are in-house units set up by multinational companies to drive innovation, efficiency, and digital transformation.
• Once back-office hubs, GCCs have evolved into strategic centres for R&D, analytics, AI, and innovation.
• India is home to over 1,600 GCCs, employing more than 1.6 million people and projected to generate $121 billion by 2030.
• GCCs provide cost efficiency, access to global talent, and support digital-first strategies across industries like BFSI, technology, aviation, and retail.
• Challenges include evolving customer demands, financial volatility, and the need for agile workforce models.

What Is a Global Capability Centre (GCC)?

A Global Capability Centre is a wholly-owned unit of a multinational corporation, established in offshore or nearshore locations to deliver business-critical functions. These include:

• IT and engineering services
• Finance and accounting
• Data analytics
• Customer support
• R&D and product design

Earlier known as Global In-house Centres (GICs) or Captive Centres, GCCs are now far more than support functions. They are strategic assets that combine technology, talent, and innovation to drive global business growth.

The Evolution of GCCs

The journey of GCCs spans decades:

1. 1990s – Emergence: Started with IT support and back-office functions.
2. 2000s – Diversification: Expanded into finance, HR, and customer support.
3. 2010s – Strategic Value: Shifted from cost centres to value drivers with process excellence.
4. 2020s – Digital Transformation: Adopted AI, cloud, cybersecurity, and analytics.
5. Today – Innovation Hubs: Closely linked with universities, startups, and local ecosystems.
6. Future – Leadership Roles: More CXO-level positions (CIO, CTO, CFO) now being based in India and other GCC-heavy regions.

Why Companies Set Up GCCs

There are three main reasons:

• Access to Talent: Companies tap into specialized global talent pools, especially in India where the tech workforce is massive and diverse.
• Cost Efficiency: Significant savings on operational costs without compromising quality.
• Innovation & Agility: By embedding AI, automation, and analytics, GCCs help firms digitalize faster.

Unlike traditional outsourcing, GCCs give companies full control over strategy, data security, and innovation pipelines.

India as the GCC Capital

India has emerged as the world’s biggest hub for GCCs:

• 1,600+ GCCs already in operation, projected to reach 1,900 by 2026.
• Market size: $60 billion in 2023, projected to touch $121 billion by 2030 (NASSCOM-KPMG, Economic Survey).
• Job creation: Over 600,000 new jobs in 5 years, with a current workforce of 1.6 million+.

Major global firms with GCCs in India include:

• JPMorgan Chase (55,000+ employees in India, one-third in tech).
• Goldman Sachs (8,500 employees across Bengaluru & Hyderabad).
• Texas Instruments (pioneered India’s GCC model in the 1980s, now a leader in chip design).
• GE Aerospace (1,200 engineers in Bengaluru working on next-gen aviation engines).

Indian cities like Bengaluru, Hyderabad, Pune, and Gurugram have become hotbeds for GCC activity, attracting both Fortune 500s and fast-growing tech firms.

Global Impact of GCCs

While India leads, GCCs are a global phenomenon. Countries like Poland, the Philippines, Mexico, and Ireland have also become popular destinations. Together, these centres reshape how multinationals manage technology, innovation, and customer experience across borders.

GCCs are increasingly linked to strategic global functions—like AI development, cybersecurity, and cloud computing—making them crucial for worldwide digital transformation.

Challenges Facing GCCs

Despite their success, GCCs face key challenges:

• Agility: Staying adaptive to evolving business needs and tech disruption.
• Talent Retention: Competition for skilled professionals in AI, cybersecurity, and data science.
• Evolving Customer Demands: Delivering faster, more digital-first services.
• Financial Volatility: Global market uncertainty impacting investment and expansion decisions.

Companies must continuously innovate to ensure GCCs remain value drivers rather than slipping back into transactional roles.

The Future of GCCs

The next decade will see GCCs move up the value chain. Instead of just supporting operations, they’ll:

• Lead AI, product design, and cybersecurity innovation.
• Nurture global leaders, with more CXO-level positions sitting in India.
• Strengthen partnerships with startups, universities, and local ecosystems.
• Expand into newer areas like edge computing, IoT, and biotech.

According to experts, India’s GCC workforce could cross 4 million employees by 2030, reshaping not just India’s economy but also the way multinationals operate globally.

Final Thoughts

Global Capability Centres have come a long way from being low-cost back offices. Today, they are strategic growth engines, blending talent and technology to transform organizations.

For India, GCCs are more than just job creators—they are engines of innovation, global leadership, and digital transformation. For the world, they represent a new model of how companies scale, innovate, and stay competitive in a digital-first economy.

As businesses continue to globalize, GCCs will remain at the heart of this transformation.

Sources: Accenture, ET.