‘India's Global Capability Centres Evolve into Innovation Powerhouses, But Challenges Loom’
GCCs in India play a strategic role, driving innovation, transformation, and global mandates.
25 JUNE 2025 / 2 min read
India's Global Capability Centres (GCCs) have undergone a significant transformation over the past two decades, evolving from low-cost, transactional services to driving enterprise-wide innovation and global mandates, according to Arindam Sen, Partner and GCC Sector Leader at EY India. In an interview with Business Today, Sen said that around 40%-45% of GCCs in India are now at the forefront of global innovation, delivering high-value outcomes from the country.
GCCs, which were initially set up in India to take advantage of the country's large pool of skilled talent and cost arbitrage, have matured significantly over the years. Today, they play a strategic role in the growth of multinational companies, driving innovation, transformation, and global mandates.
Sen noted that India offers unmatched scale, talent, and digital maturity, making it a preferred destination for setting up GCCs beyond the cost advantage. The country hosts over 45%-50% of all GCCs globally, with other regions like Southeast Asia, Eastern Europe, and Latin America accounting for the rest. India's GCC industry has grown to become a significant contributor to the country's economy, with many multinational companies setting up centers in cities like Bengaluru, Pune, and Hyderabad.
However, Sen highlighted key risks that could impact the long-term growth and competitiveness of India's GCC industry. "The major hubs like Bengaluru and Pune are nearing saturation, and costs are rising faster than salaries," he said. Additionally, there is a supply-demand mismatch in digital skills, and global protectionism could impact India's position as a hub for GCCs.
To stay ahead, GCCs must reinvent themselves and adapt to changing market conditions. Sen emphasised the need for policy and infrastructure changes in India to support the growth of the GCC industry. "India needs stronger IP protection, faster single-window clearances, and academic-industry collaboration to catalyse the next phase of high-value, innovation-first GCC growth," he said.
Despite these challenges, Sen expects growth to be strongest in sectors like pharma and healthcare, consumer products and retail, technology, energy, and manufacturing, driven by emerging trends like digital health, sustainability goals, and digital twin adoption. "Nearly all global sectors are represented in India's GCC industry, but growth will be strongest in these sectors," Sen noted.
