Why India Is the Preferred Destination for Global Capability Centres in 2025
In 2025, India has emerged as the foremost destination for Global Capability Centres (GCCs), evolving far beyond its earlier perception as merely a low-cost outsourcing location. It now plays a vital role in driving innovation, digital transformation, and organizational agility for global enterprises. Over the past few years, the responsibilities of GCCs have expanded considerably. What once focused on back-end support now includes advanced functions such as research and development, artificial intelligence, cybersecurity, and core business innovation. India's leadership in this space is the result of a strong blend of skilled talent, advanced technology infrastructure, favourable government policies, and the ability to scale operations effectively.
Today, India is home to over 1,700 GCCs, supporting Fortune 500 companies across sectors like financial services, healthcare, technology, automotive, and retail. According to data from NASSCOM and the Everest Group, the value of the Indian GCC market stood at $64.6 billion in 2024 and is projected to reach $105 billion by 2030. These centres currently employ around 1.9 million professionals, a number expected to rise to 2.8 million within five years. This scale and pace of growth are unmatched globally, with more than 70 percent of Fortune 500 companies now operating at least one GCC in India.
A key factor behind India's growing appeal is its vast and digitally skilled workforce. The country accounts for nearly 28 percent of the global pool of STEM graduates and 23 percent of the world's software development talent. More significantly, this talent is future-ready. LinkedIn's 2024 research highlighted India as having the highest AI skills penetration worldwide, with AI-proficient professionals growing 14 times in the last seven years. This depth and breadth of expertise allow GCCs to build robust teams capable of delivering complex, high-value work at scale.
Another noticeable shift in 2025 is the geographic expansion of GCCs beyond traditional metropolitan areas. While cities like Bengaluru, Hyderabad, and Pune continue to dominate, there is growing momentum in Tier-2 locations such as Coimbatore, Vadodara, Mohali, and Mysuru. These cities offer significant cost advantages, lower employee attrition, and access to talent from regional academic institutions. Many companies are embracing a hub-and-spoke strategy—maintaining headquarters in metros while expanding support, innovation, and research operations into more affordable secondary cities.
Functionally, GCCs in India have also undergone a transformation. They have moved beyond IT and support services to now include product innovation, marketing analytics, customer experience design, AI model development, and financial operations. This expanded scope enables businesses to be more resilient, responsive, and innovative-all from a single location.
Several state governments are actively promoting the GCC ecosystem through dedicated policies and incentives. Bengaluru alone accounts for nearly 30 percent of India's GCCs. Karnataka is targeting the addition of 500 new GCCs by 2029, which could generate 350,000 jobs and $50 billion in economic output. Similarly, Uttar Pradesh introduced its GCC Policy in 2024, aiming for over 1,000 new centres and half a million jobs by offering benefits like payroll subsidies and stamp duty waivers. Maharashtra is also creating dedicated GCC parks to attract $20 billion in foreign direct investment and generate 750,000 skilled jobs by 2030. These initiatives reflect the government's strategic focus on making India a preferred location for global enterprises.
There is also increasing traction in Tier-2 and Tier-3 cities such as Kochi, Indore, Jaipur, and Coimbatore, which offer further reductions in operating costs—often between 10 to 35 percent compared to Tier-1 cities. Companies operating in these non-metro areas can save up to 30 percent in overall expenses. This shift not only enhances financial efficiency but also enables businesses to access a new wave of skilled graduates. The Indian government is currently working on a comprehensive national policy to incentivize GCC expansion into these emerging urban centres.
For global companies-whether they are scaling existing operations or establishing new innovation hubs-India represents the most strategic and future-ready destination for GCCs in 2025 and beyond. To navigate this complex and dynamic landscape effectively, organizations need a reliable local partner who understands regional talent pools, policy frameworks, and real estate dynamics.
CIRIL, one of India's leading commercial real estate advisory networks, supports global enterprises in identifying optimal cities, locations, and office spaces for building high-performing, cost-efficient GCCs. With nationwide reach and deep local knowledge, CIRIL helps companies unlock the full potential of their India GCC strategy.
