Why India is emerging as the ideal hub for GBS and GCCs

Time of India

11 hours ago

India
has firmly established itself as the global epicentre for Global Business Services (
GBS
) and Global Capability Centers (GCCs). What began two decades ago as cost-saving offshore centers has evolved into strategic innovation hubs driving digital transformation and operational excellence for multinational corporations. This paradigm shift in how companies perceive globalization, talent acquisition, and technological innovation through GCCs is reshaping the global business landscape.
The Strategic Evolution: From Cost Centers to Innovation Powerhouses
The perception of GCCs as merely low-cost service hubs is now obsolete. India's GCC landscape has transformed dramatically from centralized service delivery models focused primarily on cost reduction to strategic centers of excellence with specialized capabilities
. Today, over 1,600 GCCs operate in India, employing more than 1.5 million professionals
, with
projections suggesting growth to 2,400 centers by 2030, potentially elevating the market value to $110 billion.
This evolution reflects a fundamental shift in corporate strategy. GCCs have progressed beyond transactional services to become strategic enablers that drive organizational growth through emerging technologies. They now function as innovation engines, propelling parent companies into new frontiers of operational efficiency and market leadership.
GBS and GCC models transform traditional shared service centres into centres of excellence, driving efficiency and innovation. GBS centralises and standardises processes, uniting business units under one framework to maximise economies of scale. By combining in-house teams with third-party providers, it improves efficiency, governance, and compliance. GCCs, meanwhile, are specialised centres that insource critical business functions and focus on innovation. Unlike GBS's broad service delivery, GCCs excel in AI, automation, cybersecurity, cloud computing, and digital transformation.
India's Unparalleled Advantages for GCC Establishment
India's greatest advantage lies in its vast pool of skilled professionals who combine technical expertise with deep functional knowledge. India boasts one of the world's largest and most skilled workforces, with over 5.8 million IT professionals contributing to the industry as of 2025. Annually, the country produces over 1.5 million engineers, including 120,000 IT graduates, meeting the growing demand for expertise in emerging fields such as AI, machine learning, and cloud computing. India's IT sector is likely to reach a milestone of USD 300 bn in revenue in 2026 (Nasscom Annual Strategic Review 2025), showcasing its role as a global tech powerhouse.
While cost was the initial driver for establishing GCCs in India, the value proposition has evolved significantly. India offers an ideal combination for enterprises concerned with balancing operational efficiency and cost. GCCs in India deliver not just cost savings but also quality excellence as a result of our deep functional understanding, solidifying India's appeal to businesses looking for scale and agility.
GCCs in India have the potential to not only deliver cost savings but also innovation in service delivery. Their ability
to operationalize Enterprise Resource Hubs (ERHs)
and deploy autonomous operational models in record time will ensure further reduction in setup and operational costs, solidifying India's appeal to businesses looking for scale and agility.
India's strategic geographical positioning and cultural compatibility, particularly with Western and Middle Eastern markets, make it an ideal partner for organizations looking to leverage GBS for their operational needs. The proximity to major Asian and Middle Eastern markets, alongside a shared cultural ethos with many global corporations, facilitates smoother integration and collaboration.
AI-Driven Indian GCCs
India's GCCs are at the forefront of AI adoption and digital transformation. The integration of AI, machine learning, and hyperautomation is redefining operational management at a global scale. Advanced analytics, process automation, and predictive intelligence have significantly progressed due to the incorporation of AI in GCCs.
AI implementation in GCCs enables real-time decision-making capabilities through high-level analytics for extensive data processing, particularly useful in finance, supply chain management, and customer service optimization. GBS-enabled back-office processes have been automated through Intelligent Process Automation (IPA). This has increased the de-skilling of human effort, leading to fewer mistakes and significantly higher productive outputs.
Autonomous Systems Transforming Business Operations
As GCCs evolve, there will be increasing demand for autonomous systems and platforms capable of automating and managing expense-line business operations. These systems are transforming critical functions across the enterprise. Autonomous procurement systems are revolutionizing the procure-to-pay cycle by automating supplier on boarding and verification processes, implementing AI-driven contract management and compliance monitoring, enabling predictive analytics for spend optimization and supplier risk assessment, and facilitating seamless collaboration between buyers and suppliers through digital platforms.
In the finance domain, autonomous systems are delivering significant improvements by reducing process cycle times by 40-70% across various functions, with specific improvements including 55% touchless invoice posting for AP processes, 40% cycle time reduction for reconciliation processes, 50% for AR processes, and over 70% for Master Data processes. They're also accelerating cash application and reconciliation processes, enhancing financial forecasting accuracy with AI-powered predictive models, and streamlining record-to-report cycles with automated data validation and reporting.
The HR function is being transformed through AI-driven recruitment and talent acquisition platforms, automated employee onboarding and documentation processes, intelligent performance management systems, and personalized learning and development programs powered by AI. Meanwhile, autonomous systems are enhancing compliance functions by monitoring regulatory changes and automatically updating compliance frameworks, identifying and flagging potential compliance issues through pattern recognition, streamlining reporting and documentation requirements, and reducing compliance-related risks through proactive monitoring and alerts.
Enterprise Resilience Hubs: The Next Evolution
The concept of Enterprise Resilience Hubs (ERHs) represents the next evolution of GCCs, focusing on building resilience and agility into business operations. ERHs leverage advanced technologies to enhance operational continuity and drive long-term business performance.
Unlike traditional GBS or GCC models that rely heavily on human-driven processes, ERHs leverage largely autonomous shared services across processes in functions such as Procure-to-Pay (P2P), Order-to-Cash (O2C), Record-to-Report (R2R), and compliance. Advanced automation eliminates repetitive tasks, enabling organizations to streamline operations while reducing dependency on extensive staffing or physical infrastructure.
ERHs use AI to go beyond task execution, providing predictive insights, real-time analytics, and intelligent process optimization for mission-critical functions. These capabilities empower organizations to respond proactively to disruptions, making data-backed decisions that reinforce operational resilience and business continuity. By embedding advanced data analytics into core processes, ERHs enable enterprises to identify emerging trends, monitor risks, and uncover innovation opportunities. Decision-makers gain a holistic view of operational data, driving strategic adjustments that align with dynamic market conditions.
India's Growing ERHs Landscape: Expanding Horizons
Enterprise Resilience Hubs are emerging as India's answer to growing sustainability challenges amid GCC expansion. As operations extend beyond metropolitan centers, infrastructure constraints and resource scarcity—particularly water—have become pressing concerns. ERHs address these challenges by integrating sustainability directly into their frameworks through AI-driven processes that significantly reduce resource consumption while maintaining operational resilience.
The shift to tier-2 and tier-3 cities creates a dual benefit: alleviating urban infrastructure pressure while bringing economic opportunities to developing regions. Government incentives and improving digital infrastructure make cities like Jaipur, Kochi, and Indore increasingly viable for ERH operations. By embedding ESG considerations into their operational DNA, these hubs demonstrate how business growth and environmental stewardship can successfully coexist, offering a blueprint for responsible expansion across urban and semi-urban India.
Summary
India's position as the premier hub for GBS and GCCs is built on its exceptional talent pool, cost advantages, and technological capabilities. The emergence of Enterprise Resilience Hubs is crucial as they address pressing challenges of resource scarcity—particularly water—and infrastructure constraints while enabling responsible growth in both urban and developing regions.
For global enterprises, India now offers both traditional GCC benefits and the opportunity to establish ERHs that combine operational excellence with environmental stewardship. As businesses face mounting sustainability pressures, ERHs provide the strategic framework to balance innovation, resource efficiency, and long-term resilience in an increasingly competitive global environment.