The GCC Sector in India is expanding rapidly and according to leaders of Indian IT companies, GCCs are becoming increasingly relevant in the IT services ecosystem and thus they are enhancing their focus on them.

So what are GCCs?

Global Capability Centres (GCCs) or Global In-house Centres (GICs) are offshore units set up by MNCs in specific regions of the world like India to leverage talent, technology, and cost advantages. These centers act as strategic extensions of the parent organizations, housing specialized teams that undertake various critical functions. According to NASSCOM, GCCs deliver access to high-caliber talent and strategic, cross-functional capabilities and often serve as centers of technological excellence and innovation for the enterprise.

Credits: Team Lease

What they used to do earlier and what do they do now?

Earlier GCCs were seen as offshore units set up by MNCs to handle back-office operations such as finance, accounting, and data entry. This was done to lower the operational costs as the same task would cost more in the US than in a country like India.

Today, they have matured beyond cost-effectiveness and handle dedicated tasks such as analytics, R&D, and even core business operations. They have evolved into innovation hubs and Centres of Excellence (CoEs). GCCs are increasing their focus on developing domain expertise and specialization in niche areas such as artificial intelligence, machine learning, cybersecurity, and cloud computing. This specialization enables them to deliver tailored solutions to their parent organizations and gain a competitive edge in the market.

What are the advantages of GCC over outsourcing work to IT companies?

  • Increased level of control and ownership over operations.
  • Cost-effective in the long run, particularly when established in countries with lower labor costs.
  • Offshore captive centers offer heightened data security, as sensitive information remains within the organization’s control.

India has become a preferred destination for MNCs to set up their GCC. But why India?

According to the Economic Survey 2025, the number of GCCs in India has grown from approximately 1,430 in FY19 to over 1,700 in FY24, employing nearly 1.9 million professionals. Over the past five years, India has remained at the forefront of the global GCC expansion strategy, with more than 400 new GCCs and around 1,100 new units established.

India has established itself as a prominent player by leveraging its vast talent pool, which accounts for 28% of the global STEM workforce and 23% of the global software engineering talent.

What is the impact on the IT Industry?

“Indian IT services firms are viewing GCCs as a new business opportunity. This is a significant shift from their stance before 2020 when they primarily saw GCCs as competitors,” said Everest Group vice-president Hrishi Raj Agarwalla.

Half of the new GCCs established in the past one-two years have leveraged external IT and business process services firms for setup support, as per Everest Group data.

According to ANSR’s (the company that has been instrumental in helping set up around 135 GCCs in India) co-founder Vikram Ahuja, GCCs and service providers are not rivals. According to him, the core capabilities — data and AI, analytics, product engineering, etc. — remain in GCCs while specialized and legacy functions, optimizations, and project-based work will continue to be managed by IT service providers.

GCC-related operations have helped Indian IT majors increase their revenue in the domestic market

Infosys’s India revenue, which was 3.1% in the three months through September 30, grew 19.9% and 16% sequentially in the first and second quarters of fiscal 2025, after shrinking 15.4% in the January-March period.

For market leader Tata Consultancy Services, India led growth with a 95.2% expansion in revenue from the home market that accounted for 5.6% of total revenue.

Indian IT firms collaborate with GCCs by providing expertise, talent, and infrastructure support to help them scale efficiently.

Newer GCCs rely on IT firms for accelerators and talent development, while mid-sized and long-established GCCs partner with them to move up the value chain and grow faster.

IT service providers assist in setting up operations, acquiring talent, and integrating advanced technologies.

Companies outside the tech sector, facing challenges in attracting skilled professionals, turn to IT firms for innovation support.

What have Indian IT Leaders said about GCC and its impact?

  • Nachiket Deshpande, COO, LTIMindtree: Stressed that GCCs and Indian IT firms will coexist, with IT companies playing a key role in supporting GCCs through office setup, talent acquisition, and skill augmentation. He highlighted financial services as a key vertical for GCCs.
  • Srini Pallia, CEO, Wipro: Highlighted that Wipro has trained 230,000 employees in generative AI and has 44,000 advanced AI experts, enabling it to partner with GCCs for project execution.
  • C Vijayakumar, CEO, HCLTech: Stated that while certain tasks are better suited for outsourcing, others align well with in-house operations. He dismissed concerns about GCCs eating into IT firms’ market share, pointing out that the $1 trillion global system integrator market presents ample growth opportunities.