BENGALURU: India’s Global Capability Centre (GCC) landscape continues to thrive, with projections indicating the establishment of over 120 new mid-market GCCs by 2026, according to research from Bengaluru and US-based firm ANSR. This remarkable growth underpins the escalating interest from medium-sized enterprises aiming to utilize India’s digital transformation expertise and global service capabilities. Currently, India hosts more than 800 mid-market GCCs, collectively employing about 220,000 people, which accounts for approximately 10% to 12% of the total GCC workforce.

ANSR’s founder, Lalit Ahuja, highlighted that the mid-market GCCs generate revenues between $100 million and $1 billion, and emphasizes their crucial role during the post-pandemic recovery for companies that previously lacked outsourcing options. In the past two to three years, several firms such as Revolut, Papa Johns, and Outbrain have initiated operations in India, focusing primarily in major cities like Bengaluru and Hyderabad which remain dominant in this sector. Notably, these cities account for more than 50% of mid-market GCCs and the available skilled workforce.

As emphasized in the trends noted by Tholons, the GCCs have transformed from mere execution sites to innovation hubs, marking India’s rising significance in global service exports with around 1,700 GCCs operating in the country. The continued evolution toward digital competencies sees a projected increase in work related to AI, data science, and cloud computing, jumping from 20-25% currently to between 40-50% by 2030.

Moreover, the shift towards agile workspaces and hybrid working models is evident as organizations seek to optimize expenditures while enhancing operational efficiency. Currently, firms offer larger office spaces, with some providing as much as 200 sqft per employee, significantly above the norm. This surge in demand is mirrored by a trend where over 35% of Fortune 500 companies are moving critical functions to off-shore GCCs, representing a substantial $210 billion market opportunity.

As competition intensifies, both nationally and globally, various state governments in India are stepping up to attract GCC investments by unveiling supportive policies. With class A infrastructure and streamlined regulatory compliance being prioritized, Karnataka, Telangana, and Maharashtra lead in attracting these setups. This underscores that GCCs are not just contributing to cost optimization—averaging a net reduction of over 50% in operational costs—but also positioning India as a significant player in global innovation with expectations to increase its share to 15-20% of global innovation output by 2030.

As India’s GCC ecosystem flourishes, the contributions made toward advancing technology, enhancing workforce skills, and expanding the professional landscape remain pivotal to supporting this upward trajectory.