India has taken the lead in setting up and growing global capability centres (GCCs) in today’s fast-changing world. Established by multinational corporations (MNCs) to leverage local talent, these strategic hubs boost innovation and efficiency while creating value for parent companies.
‘GCCs have become one of India’s most significant economic success stories, evolving from cost-efficient back-office operations to high-value, innovation-led strategic hubs,’ says Md Sajid Khan, director for India at ACCA.
Indian GCCs will generate US$100bn and 2% of GDP by 2030
A new ACCA report, Global capability centres in India: trends, opportunities and evolving role of talent, offers an in-depth look at the GCC sector in India, highlighting its immense potential and impact on the country’s economic growth.
End-to-end integration
Since emerging in the 1990s, GCCs have gone through major changes. What began as an offshore cost-saving measure has now become an integral strategy for global companies. Thanks to its vast talent pool, business-friendly government policies and rapidly expanding digital infrastructure, India has become a leading destination for businesses setting up GCCs across multiple areas.
‘The opportunity to lead end-to-end processes requires us to understand how the overall business functions,’ says Aardra Ben, an independent testing specialist at Wells Fargo, who has moved from offshore operations to a GCC. ‘That’s a key difference between doing project-based offshore work and managing processes in a GCC set-up.’
The trend is clear in the banking, financial services and insurance sector. ‘GCCs are instrumental in providing financial services, risk management, compliance and technological support to the parent,’ says Dipesh Shah, executive director for development at the International Financial Services Centres Authority.
No longer focused just on cost savings, GCCs now take on more complex and high-value tasks, such as advanced analytics, artificial intelligence and blockchain technology.
‘Many leadership roles are now sitting in offshore locations’
Arun Venkatachalam, FD for NES Fircroft’s GCC, says: ‘Our global support centre in Bengaluru, initially set up to provide just regional support, has moved to delivering process standardisation and end-to-end processes. Further, the centre is now focused on value creation for the parent company by supporting process automation, thus supporting robotic process automation and AI integration.’
Driving the economy
In 2024, there were more than 1,700 GCCs in India. By 2030, that number is expected to jump to over 2,200. GCCs are projected to generate over US$100bn in revenue and contribute 2% of India’s GDP by the end of the decade. The sector is expected to have up to 2.8 million employees by 2030.
The centres also drive growth in related industries, such as real estate, IT services and transportation. According to CBRE, GCCs leased 29 million square feet of office space across India’s top nine cities in 2024, accounting for around 37% of overall leasing activity.
While GCCs are typically found in major cities, they are also moving into tier-2 and tier-3 cities. For example, Mysuru in Karnataka and Coimbatore in Tamil Nadu offer the necessary infrastructure, local talent pool and real estate required by GCCs, with the added advantage of being more cost-effective than tier-1 cities.
Key role
As GCCs continue to expand their scope, the demand for finance professionals in India is rising across the board. Roles and functions are changing, too. Entry-level professionals are moving away from routine tasks and starting to validate data, handle exceptions and do deep dives into analysis.
‘We have a lot of catching up to do for an innovation mindset’
Meanwhile, mid-level staff are focusing on improving processes, supervising and innovating. Senior and C-suite professionals are increasingly based in Indian GCCs, ensuring everything aligns with their parent companies’ goals. ‘Over the years, the difference between onshore and offshore has blurred substantially, and many leadership roles are now sitting in offshore locations,’ says Koshy Mathew, partner at EY GDS.
To thrive in the GCC’s dynamic economy, employees need to embrace continuous learning, foster cross-functional collaboration and maintain a forward-looking mindset. ‘Staying relevant in today’s world means upskilling and reskilling continuously – otherwise, you risk becoming obsolete,’ says Thanuja Balaji, director for accounting at Ford Business Solutions.
Upskilling
The ACCA report identifies key challenges that must be addressed to capture opportunities, including talent gaps, wage inflation, high attrition rates and geopolitical uncertainties.
‘As a country, we have a lot of catching up to do to make innovation a part of our mindset,’ says R Narayanaswamy, retired professor of finance and accounting at the Indian Institute of Management in Bangalore. ‘As more organisations set up GCCs in India in the hope of innovating, we need to gear up in order not to disappoint them but make the best of this opportunity.’
‘Cross-cultural talent and global-local collaboration are key’
The report recommends that GCCs focus on creating value for their parent organisations, investing in developing talent and tackling any challenges that come with integrating different cultures. Policymakers can do their part by implementing a comprehensive GCC strategy, streamlining regulations, promoting innovation and making sure GCCs have access to skilled talent.
Report author Pooja Chaudhary, policy lead for India at ACCA, says: ‘Strong leadership, cross-cultural talent and collaboration between global and local teams are key to running a successful GCC. As GCCs take on more strategic roles, they must work with policymakers to streamline regulation and partner with academia to bridge skill gaps.’
The top priority is equipping talent with the skills and knowledge they need to make a meaningful impact. ‘Innovation isn’t something that one can copy; it’s an ethos that needs to be developed,’ says Narayanaswamy. ‘To train students, teachers need to be a part of the innovation ecosystem and one way is by putting academics on the industry shopfloor.’
