How has India become a hub for mid-sized GCCs?

Indian Global Capability Centres (GCCs) are rapidly evolving from cost centres to strategic value hubs. The country's focus on advanced technologies enables innovation across multiple domains in the swiftly changing international business environment. This transformation is now empowering mid-market companies to leverage their inherent flexibility and adopt new technologies for enhanced operational efficiency, innovation, and value creation.

These companies recognize the strategic benefits of building and managing their centres in India. Slowly, several mid-size companies are also exploring tier-2 cities, considering efficient costs and untapped talent. With the strategic advantages, operational strength, and innovation paths that India's GCCs offer, mid-size companies are eager to scale efficiently beyond financial constraints. Let's look at what is driving the momentum.

Talent Pool

One of the most compelling reasons mid-market companies choose India for their Global Capability Centres is its abundant, high-quality talent pool. Telangana, Tamil Nadi and Karnataka's educational ecosystem have significantly influenced its technology dominance in South India. With the vast number of engineering colleges, the states churn out a large talent of IT professionals every year.

Beyond fresh grads, laterals with decades of experience are also available in the ecosystem who have been ‘been there, done that’ in other GCCs. In addition, there is available talent in Tier 2 cities with lower attrition rates and competitive salary expectations, making them ideal for setting up lean and efficient teams.

World-Class Physical Infrastructure

India's major tech cities, like Bengaluru, Hyderabad, and Pune, have established themselves as prominent technology hubs thanks to favorable government policies that support innovation. The cities are equipped with well-maintained highways, strong telecom links, and dependable electricity, all thanks to the government initiatives and private companies. The amenities, along with modern offices, business hotels, co-working spaces, and tech parks, allow mid-sized firms to shift to ever-changing business requirements nimbly.

Government Support

Initiatives like Digital India and establishing Special Economic Zones (SEZs) have fostered a business-friendly environment. Simplified regulations, streamlined processes, and favorable visa norms make it easier for companies to set up and scale their operations.

State governments complemented this through skill development initiatives to ensure the workforce is ready to meet the talent demand. This is observable in initiatives like TASK (Telangana Academy for Skill and Knowledge) in Telangana and e-Governance programs in Tamil Nadu, where solutions to industry-academia requirement mismatches were crafted. Bengaluru also referred to as the country's Silicon Valley, has profited greatly from the addition of these initiatives  employed by the Karnataka government.

Startup Innovation Ecosystem

Mid-market GCCs can leverage India's vast startup and tech innovation ecosystem for collaboration and co-creation to stay ahead of market disruptions. Whether in deep tech, SaaS, or AI tech, global capability centres in India can plug into innovation networks that bring agility, fresh thinking, and local market insights.

Redefined work culture

Unlike traditional IT firms that often focus on output over innovation, GCCs focus on value creation through creativity and innovation. Also, GCCs are evolving and transitioning towards higher-value and more complex work, and the need for diverse skills has increased.

To attract the right talent, companies are investing in enhancing employee experience with skill development possibilities, positive culture, improved career paths, competitive compensation, flexible work options, and a compelling overall employee value proposition. Additionally, the organizations are showcasing sustained success due to their diversity initiatives. Inclusive hiring practices, employee resource groups, women empowerment initiatives, and diversity and inclusion (D&I) focus help create a culture of innovation through varied perspectives.

Conclusion

India has become the major destination for mid-market global companies. Its unique combination of skilled talent, robust infrastructure, supportive policies, and dynamic innovation culture makes it ideal for mid-sized firms looking to grow smart and fast. These GCCs are no longer just execution engines; in fact, they are becoming strategic partners.

Disclaimer

The views, thoughts, and opinions expressed in this blog are solely those of the author and any content provided on this blog is for informational purposes only.