India remains global GCC magnet as Centres take on R&D, AI leadership roles
India's
Global Capability Centres
or GCCs are expected to continue their growth momentum for the next four to five years, as they are climbing up the value chain and taking on more strategic roles within global organisations, as per the
PwC India report
.
GCCs in India
are projected to generate value at a CAGR of 11% to 12% between FY 25 and FY 29, PwC India said in its report,
Catalysing value creation in Indian global capability centres.
The GCCs have picked up pace even in the growth rate, as they had recorded a CAGR of 10–11% during FY20–24.
Currently, there are about 2975 GCCs in India and they employ nearly 1.9 million professionals, as per a 2024
NASSCOM-Zinnov report
and the Economic Survey. The total market size of GCCs is expected to touch $60 billion by the end of 2025, according to a separate Nasscom-KPMG report.
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'In the context of India's growth story, it is important for GCCs and their HQs to co-create a shared definition of value, invest in joint decisions, and build a culture of collaboration. GCCs must see complete alignment with their HQs – not as a one‑time fix but as a sustained leadership imperative,' said Sanjeev Krishan, Chairperson, PwC in India.
According to the report, full alignment across key areas such as governance, resource allocation, and performance measurement could deliver an additional 3–4% CAGR in value creation. This would push total value growth to as much as 14–15% over the next five years.
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'Strengthening GCC–HQ alignment requires intentional actions that go beyond delivery. Encouraging cross-functional collaboration, celebrating shared outcomes, and embedding a value-driven mindset across teams are critical steps. These actions not only foster greater trust and visibility with HQs but also enable GCCs to step up as an extension of HQ and strategic partners delivering enterprise-wide impact,' said Rajesh Ojha, Partner and GIC/GCC Market Segment Leader, PwC India.
The report added that Indian GCCs are moving beyond adding operational efficiency for their headquarters and are now moving up the value chain. Between FY20 and FY24, GCCs have transitioned into multi-functional centres of excellence. Now, many are seen by their parent organisations as incubators of new technology, creators of business models, and drivers of enterprise-wide transformation, the PwC report said.
The report said that there are three major areas where GCCs are focusing: helping headquarters manage the rising cost of
digital transformation
through partnerships with start-ups; enabling faster adoption of artificial intelligence (AI) and strengthening cyber resilience using deep technical capabilities.
Digital transformation and R&D are expected to remain the dominant priorities through FY25–29. And increasingly, leaders of Indian GCCs are now being appointed as global heads of R&D and software products, underscoring the strategic importance of these centres, the report added.
PwC's report is based on interviews with 240 senior executives, equally split between Indian GCCs and their global headquarters. It finds that GCCs, once primarily back-office hubs, are evolving into strategic partners in innovation, technology and business leadership.
The report said that respondents also broadly agreed that gender-balanced leadership will be vital for future value creation.
The report said that India is likely to remain the preferred destination for setting up and scaling GCCs. Fewer than one in four companies are considering moving operations out of the country. Instead, the majority see India's centres emerging as solution hubs anchored in AI and digital technologies.
'Indian GCCs are uniquely positioned to become engines of dynamic value creation. To accelerate this growth and make GCCs more competitive and investible, the national and state governments should make substantial investments in developing infrastructure that can be used for GCC setups, such as building GCC parks and developing Tier 2 locations to become mature GCC hubs,' said Raghav Narsalay, Partner and Leader – Research and Insights Hub, PwC India.
The report draws a parallel between India's GCC evolution and globally recognised value creation models such as Silicon Valley in the United States and Japan's Kaizen approach. It adds that India has a unique opportunity to shape a distinctive value architecture of its own—one that strengthens both its economic position and its soft power globally.
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