Mid-Market Indian GCCs Key to Global Innovation: Nasscom-Zinnov
23 Apr 2025 / 03 min read
India’s Global Capability Centers (GCCs) are undergoing a significant transformation, with mid-market segment driving growth and innovation, according to a latest report by Nasscom and Zinnov. The report, `India’s GCC Leap – Powering Global Mid-Market Momentum,’ highlights the growing influence of mid-market GCCs in deep technology domains such as Artificial Intelligence/Machine Learning, cloud computing, cybersecurity, and data science.
India’s Global Capability Centers (GCCs) are undergoing a significant transformation, with mid-market segment driving growth and innovation, according to a latest report by Nasscom and Zinnov. The report, `India’s GCC Leap – Powering Global Mid-Market Momentum,’ highlights the growing influence of mid-market GCCs in deep technology domains such as Artificial Intelligence/Machine Learning, cloud computing, cybersecurity, and data science.
Mid-Market GCCs: A New Era of Innovation
Mid-market GCCs are rapidly evolving beyond traditional execution-focused roles, becoming significant contributors to their parent organizations’ market strategies and influential players in their respective industries. These centers are characterized by higher maturity as transformation hubs, deeper product capabilities, and a high concentration of niche deep tech skills.
The report notes that India’s current mid-market GCC landscape comprises over 480 centers and 680 units, employing more than 210,000 individuals and constituting 27% of total Indian GCCs and 22% of their units. Over 45 new mid-market GCCs have set up operations in India in the past two years alone, accounting for nearly 35% of total GCCs and 30% of total GCC units during this period.
Challenges and Opportunities
While mid-market GCCs face challenges in attracting early-career talent, lack standardized operating procedures, and struggle to establish innovation partnerships, the future outlook is promising. With the potential to attract 30-40K of the 130k-150k global mid-market companies, mid-market GCCs in India can transform into AI-native innovation engines and achieve a sustainable global edge through strategic development and favorable ecosystem support.
Growth Drivers
The growth of mid-market GCCs in India is driven by a combination of factors that are creating a perfect storm of opportunity, including the increasing demand for specialized skills in deep technology domains such as AI, ML, and cybersecurity, which India is well-positioned to provide, and the growing need for innovation and digital transformation across industries, which mid-market GCCs are well-suited to deliver.
This growth is further fueled by the availability of a large talent pool in India, which is a key differentiator for the country, and a favorable business environment and government support, which is providing the necessary infrastructure and incentives for GCCs to thrive, and all these factors combined are creating a conducive environment for mid-market GCCs to flourish in India and make significant contributions to the country’s economy.
The rise of mid-market GCCs in India is a pivotal development shaping the future of global capability building in the country. With their growing influence in driving innovation and contributing to their parent organizations’ market strategies, mid-market GCCs are set to play a key role in India’s GCC landscape.
