India as the GCC Hub
Global Capability Centres (GCCs) or Captives or Global In-house Centres – what’s in a name? Regardless of the label, the fact remains: these centres have evolved into formidable engines of talent, innovation, and strategic value for global enterprises. This phenomenon of leveraging offshore capabilities for cost arbitrage, talent augmentation, and other capabilities started way back in the 1980s. Texas Instruments (TI) was the first global company to establish a captive centre in India, mainly as an R&D hub, exploring the engineering talent available in the country[1].
Many companies established GCCs in countries like the Philippines, or even near shore centres in Eastern European countries like Poland. But India remained the preferred choice as the offshore destination for a large majority of the companies. India is home to more than 50% of the world’s GCCs, and the momentum shows no signs of slowing down. According to recent reports, the country hosted nearly 1,600 GCCs as of 2023, and is projected to exceed 1,900 in 2025, employing close to 1.9 million people[2]. Looking further ahead, India is expected to house over 2,500 GCCs by 2030, collectively employing around 4.5 million people and achieving a market size of $110 billion[3].
The Phenomenal Evolution of GCCs in India
To truly understand how GCCs have evolved to become strategic powerhouses to the parent companies, its important to understand their journey over time. As mentioned earlier, TI was one of the first companies to establish an R&D centre in India. What’s particularly interesting is that even back then, it wasn’t purely a cost-saving initiative. TI’s decision was driven by a desire to tap into India’s rich engineering talent and build core product capabilities outside of the U.S.
This early move set the tone for what would become a long-term trend – leveraging global talent not just for support, but for innovation and strategic growth. Close on its heels, a wave of companies, particularly in the manufacturing, aerospace, semiconductor, technology, and BFSI (Banking, Financial Services, and Insurance) sectors, began establishing their presence. General Electric (GE) was one of the pioneering firms in manufacturing, while several other multinationals such as American Express, Citibank, Goldman Sachs, HSBC, JP Morgan Chase, Thales, Rolls Royce, British Airways, and many more also set up their GCCs across India.
Rewriting the Rules: The Transformation of GCC Operating Models
When global companies started to invest in GCCs in India, they adopted a couple of models. These operating models have significantly evolved over the years, reflecting the growing maturity and strategic intent of these centres. In the early stages, many companies adopted the Build-Operate-Transfer (BOT) model, where the parent company would leverage the expertise and capabilities of a third-party service provider to establish and manage the centre before handing it over to the parent company once it became stable. While this model helped reduce risk and accelerate setup, it often limited long-term control. There were significant advantages too – especially when it came to talent hiring and scaling up to add more services from the GCC. Another model that evolved was the Build-Operate-Own (BOO) model, where the parent company retained full ownership and control from the outset, allowing for deeper alignment with corporate strategy and culture. For example, Wells Fargo[4] and Target[5] have adopted the BOO approach in India, building robust in-house teams that directly contribute to global innovation and decision-making.
These models were not carved in stone – they evolved and transformed and morphed as the GCCs and their businesses evolved. Consider the example of Citigroup, its journey presenting a prime example. The company set up Citicorp Overseas Software (COSL) in 1986-87, and was later acquired by Polaris[6]. Several years later, the company sold its BPO arm to TCS. Aviva also sold its BPO arm to WNS in 2008[7].
A new model is now emerging – one that places transformation at its core. Today, this means the GCC is no longer a passive support unit but an active partner in the parent company’s digital transformation and modernisation journey. This marks a new wave in the scope and significance of functions delivered through the GCC. E&Y notes that today GCCs act as specialised Centres of Excellence (CoEs) in domains like AI, cloud computing, engineering, data analytics, and cybersecurity. Nearly 70% of GCCs have invested in generative AI[8]. It’s also interesting to note how GCCs are increasingly transitioning from traditional ‘cost centres’ to strategic ‘profit centres’ by focusing on building enterprise value and exploring new revenue-generating opportunities. The scope of the GCC is broadening in terms of the traditional business process functions such as legal, marketing, HR, finance, and procurement. Functions like risk assessments, modelling, analytics, and so on are performed at the GCCs are being performed increasingly at the GCCs.
The Future of GCCs: Smart, Strategic, and Scalable
The future of Global Capability Centres (GCCs) looks more dynamic and strategic than ever. As businesses double down on digital transformation, GCCs are expected to play a central role in driving innovation, automation, and enterprise resilience. With its deep talent pool, thriving tech ecosystem, and growing focus on innovation, India is expected to continue to attract global enterprises looking to build scalable, future-ready capability centres. With advancements in AI, data analytics, and cloud infrastructure, many GCCs will evolve into hubs of specialised expertise – not just executing tasks, but actively shaping business outcomes. The trend is moving towards more agile, outcome-based models where GCCs contribute to high-value areas like product development, customer experience, and sustainability. There is also greater emphasis on cross-functional collaboration, upskilling of talent, and stronger integration with global headquarters. As GCCs move up the value chain, India’s strategic advantages – from digital maturity to cost-effective innovation – position it as a global hub for driving enterprise transformation. In short, GCCs are set to become critical engines of growth and competitive advantage in the years ahead.
[1] https://www.ti.com/lit/ml/szza071/szza071.pdf
[2] https://www.ibef.org/blogs/global-capability-centres-are-transforming-india-s-corporate-landscape
[3] https://www.ey.com/en_in/insights/consulting/global-capability-centers/how-india-is-gearing-up-for-a-us-110b-dollars-gcc-industry-by-2030
[4] https://www.wellsfargojobs.com/en/locations/wf-india-and-philippines/
[5] https://www.greatplacetowork.in/great/company/target-corporation-india-private-limited#:~:text=Target%20in%20India%20operates%20as,Design%2C%20Merchandising%2C%20and%20more.
[6] https://www.tcs.com/who-we-are/newsroom/press-release/tcs-to-acquire-citigroup-global-services
[7] https://economictimes.indiatimes.com/tech/ites/wns-acquires-aviva-bpo-for-230-mn/articleshow/3216690.cms?from=mdr
[8] https://www.ey.com/en_in/newsroom/2024/11/gen-ai-a-top-priority-for-70-percent-gcc-s-in-india-more-than-half-leveraging-it-to-boost-ops-and-customer-experience-ey-survey
