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The rise of GCCs in India: Benefits, challenges and strategies
The rise of GCCs in India: Benefits, challenges and strategies

May 2, 2025

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The evolution of Global Capability Centres (GCCs) in India has been nothing short of explosive. What started as offshore units of multinational corporations have evolved from providing basic support services to becoming centres of operational excellence, product development, innovation, and business transformation. They have significantly contributed to transforming the country into a global hub for innovation and R&D.

India is home to over 1,950 GCCs employing 1.9 million people across various sectors, including technology, engineering, consulting, manufacturing, and BFSI. The growth is expected to continue, with emerging sectors like hospitality, travel, and logistics increasingly leveraging GCCs to drive digital transformation and operational efficiency.

The success of GCCs in India can be attributed to several key factors. Firstly, the vast talent pool of skilled graduates in engineering, computer science, and business management provides a highly motivated workforce with excellent technical skills and understanding of international business practices. Secondly, the cost-effectiveness of operating in India makes it an attractive destination for multinational corporations. Additionally, the Indian government's support through initiatives like Special Economic Zones (SEZs) and GCC policies promoting innovation and R&D in a few states have created a conducive environment for GCCs to thrive.

How to set up a successful GCC in India

Setting up a captive centre in India requires careful planning and execution. Some considerations to factor in, include:

  •          Companies must align their GCC's vision with the parent organisation's strategy while maintaining corporate culture

  •         Legal formalities, including the Memorandum of Understanding (MoA) and Articles of Association, must be completed through India's digital process
  •        Choosing an optimal location is crucial, considering factors such as business strategy implementation, material procurement, support services, and employee accessibility

  •         Implementing flexible hiring practices and creating an inclusive work culture are essential for recruiting and retaining top talent in a competitive market

To ensure smooth operations, companies should standardise processes by establishing consistent Standard Operating Procedures (SOPs) for all aspects of the GCC. This promotes transparency and efficiency while helping employees adapt to a unified way of working. As the GCC matures, it is important to foster innovation and position the centre as a hub for spotting trends, testing new business practices, and ideating products or services. This approach allows the GCC to evolve beyond its initial process-focused operations and contribute more significantly to the parent organisation's growth and transformation.

What are the challenges

Setting up and managing a GCC comes with its own challenges. Companies must be prepared to address these challenges to ensure a more productive environment. Some common problems include:

  •           High attrition rates - These necessitate robust retention strategies

  •          Cultural alignment – Constant attention needs to be paid to ensure the parent company and GCC have complementary work cultures, if not the same

  •         Scalability, regulatory compliance and potential infrastructure – While these challenges can arise in certain regions, it is crucial to consider them in long-term planning

Global Capability Centres have become integral to multinational corporations' growth strategies. By leveraging India's talented workforce, cost advantages, and supportive ecosystem, companies can establish successful GCCs that drive innovation and transformation. With careful planning and execution, these centres can deliver global impact from regional levels, contributing significantly to both the parent organisation's success and India's economic development. As the GCC landscape continues to evolve, it presents an exciting opportunity for companies to tap into India's potential and drive their next stage of business growth.

Source: JLL Research


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