India is on track to become the undisputed global hub for Global Capability Centers (GCCs), with over 2,100 centers projected by FY2028, according to a recent industry report by Vestian. The sector is expected to expand at a compound annual growth rate (CAGR) of 8%, with 150 new GCCs anticipated every year.
India’s GCC Landscape: Where the Growth Is Happening
As of 2025, India is home to nearly 1,700 GCCs, accounting for a staggering 53% of the global total (out of ~3,200 centers worldwide). The Tier-1 cities remain at the forefront of this growth:
- Bengaluru: 487 GCCs (29%)
- Hyderabad: 273 GCCs (16%)
- NCR (Delhi-Gurgaon-Noida): 272 GCCs
- Mumbai: 12% of total
- Pune: 11%
- Chennai: 10%
These urban powerhouses collectively dominate the GCC landscape in India, driven by strong infrastructure, tech-savvy talent, and strategic connectivity
Rise of Tier-2 Cities
While Tier-1 cities lead the charge, Tier-2 cities are gaining momentum as preferred GCC destinations. The Union Budget 2025 has proposed a national framework to encourage GCC expansion in emerging markets, promoting inclusive growth and regional development.
Sector-Wise Distribution of GCCs
The report also highlights a sectoral breakdown of India’s GCCs:
- IT-ITeS: 49% share
- Banking, Financial Services & Insurance (BFSI): 17%
- Others (Healthcare, Engineering, Consulting, Telecom, etc.): 19%
This diversity underscores India’s strategic importance across multiple domains, from deep tech to finance and beyond
Why India Remains the GCC Powerhouse
According to Shrinivas Rao, CEO of Vestian, “India’s leading office markets continue to offer a compelling value proposition—competitive operational costs, a highly skilled workforce, world-class infrastructure, and progressive policy incentives.”
However, he emphasized that site selection is critical:
“Vestian’s GCC Market Entry Index helps organizations make informed location decisions aligned with their long-term strategic objectives.”
However, he emphasized that site selection is critical:
“Vestian’s GCC Market Entry Index helps organizations make informed location decisions aligned with their long-term strategic objectives.”
What Are GCCs and Why Do They Matter?
Global Capability Centers (GCCs) are offshore strategic hubs set up by multinational companies to streamline and centralize business operations such as IT, R&D, finance, HR, and analytics. Initially seen as cost-reduction units, modern GCCs are now centers of innovation, efficiency, and digital transformation.
India’s dominance in the space is driven by:
India’s dominance in the space is driven by:
- A large, digitally fluent workforce
- Robust educational and startup ecosystems
- Favorable government policies
- Growing infrastructure in both metro and non-metro cities
Conclusion
With over 2,100 GCCs expected by FY2028, India’s trajectory in the global innovation landscape is undeniable. Backed by policy support, expanding infrastructure, and deep talent pools, India is not just the back office of the world—it’s the innovation engine powering the future of global enterprises
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