CFO Insights February 2025

Author Subramanian Gopalakrishnan, CFO Partner

GCCs in India: The Silent Transformation of Tech and Talent Dynamics

India’s GCC Boom: A Game-Changer for Tech & Talent

India’s Global Capability Centers (GCCs) are undergoing a transformational surge, with over 1,700 centers generating $64.6 billion in revenue—a figure expected to surpass $100 billion by 2030 (NASSCOM-Zinnov, EY). As visa and tariff restrictions push Fortune 500 companies to fast-track GCC setups in India, speed, expertise, and efficiency are now business imperatives.

This expansion isn’t just about cost efficiency—it’s reshaping industry landscapes, fuelling demand for specialized talent, and driving expansion into Tier 2 and Tier 3 cities. The ripple effect extends to real estate, hospitality, and technology ecosystems, reminiscent of the IT/ITES boom of the 2000s.

To stay ahead, businesses must leverage expert consulting and advisory services to fast-track setup and operational excellence.

The Silent Transformation of Tech & Talent Dynamics Driven by GCCs

Global Capability Centers (GCCs) are transforming India from an outsourcing hub into a strategic powerhouse for innovation, AI, analytics, and digital transformation. This shift is redefining talent, industry collaborations, and the broader tech ecosystem—driving India’s rise beyond cost efficiency.

Silent Transformation of Tech Dynamics

Ø From Execution to Innovation

  • GCCs have evolved from outsourcing hubs to AI, analytics, and R&D powerhouses.

  • 80% of new GCCs prioritize AI and ML capabilities (NASSCOM GCC Quarterly Report), shifting from support functions to tech-driven leadership.

Ø Reduced Outsourcing, More Specialized Partnerships

  • Many GCCs internalize core tech functions, reducing reliance on IT service providers as they achieve scale and maturity.

  • However, they collaborate with SaaS firms, cybersecurity startups, and AI specialists for niche capabilities

Ø Acceleration of AI & Digital Transformation

  • GCCs drive hyper-automation, cloud, and blockchain, positioning India as a global tech hub.

  • An Astra Vise report shows 78% are upskilling in Generative AI, prioritizing in-house expertise over third-party vendors.

Ø Strategic Influence on Policy & Compliance

  • GCCs shape India’s data privacy, cybersecurity, and fintech regulations, aligning them with global standards.

  • Their scale drives ESG compliance, AI governance, and advanced regulatory frameworks.

Silent Transformation of Talent Dynamics

Ø  GCCs as Talent Powerhouse

  • Higher salaries, global exposure, and cutting-edge projects attract top professionals.

  • This intensifies talent competition, making it harder for SMEs and IT service providers to retain skilled employees.

Ø Shift from Volume Hiring to High-Value Skills

  • Demand for AI, data science, and cybersecurity experts is surging, while routine IT support roles decline.

  • NASSCOM reports a major upskilling shift toward AI/ML and cloud computing.

Ø Reverse Brain Drain & Evolving Job Market

  • More Indian professionals with global experience are returning to work in GCCs.

  • However, this reduces entrepreneurial talent, as fewer professionals opt for startup roles

Ø Challenges for SMEs & IT Firms

  • Talent retention is a growing challenge, as GCCs offer structured career paths and global opportunities.

  • SMEs must focus on niche expertise, flexible work models, and innovation to stay competitive.

Having observed the silent transformation in tech and talent dynamics, let’s explore how Indian Tech SMEs can strategically leverage GCC growth.

How Indian Tech SME players can leverage GCCs for growth?

1. Strategic Partnerships & B2B Collaboration

  • GCCs are potential clients for AI models, cybersecurity, and automation solutions.

  • Example: Indian IT firms collaborate with GCCs for cloud migration services.

2. Offer Cost-Effective, High-Value Services

  • GCCs outsource specialized work for efficiency and speed.

  • Example: An Indian IT player initially partnered with Cisco’s GCC for networking solutions before expanding its footprint.

3. Tap Into the GCC Talent Pipeline

  • SMEs can attract mid-career professionals from GCCs who seek leadership roles.

  • Startups can provide faster career growth compared to large enterprises

4. Co-Develop & White-Label Products

  • SMEs can co-create products that GCCs integrate into global solutions.

  • Example: Fresh works started as an SME and its SaaS solutions were adopted by GCCs of Accenture & Amazon.

5. Leverage GCCs for International Expansion

  • Partnering with GCCs can act as a gateway to global enterprise clients.

  • Example: Tech Mahindra scaled globally by working with British Telecom’s GCC.

Having explored how Tech SMEs can leverage the GCC opportunity, let’s now see how GCCs can fast-track their setup by tapping into experienced professionals.

Fast-Tracking New GCC Setups: The Role of Expert Consultants

With the rapid GCC expansion in India, professionals with experience in Finance, HR, Talent Management, and Operations can offer high-value consulting services. New GCCs require speed, efficiency, and seamless integration with global standards—areas where experienced consultants can provide critical guidance.

How New GCCs Can Leverage Experts to Accelerate Setup

1. Compliance & Regulatory Navigation (Finance & Legal Consultants)

  • Navigate India’s tax structure, SEZ regulations, and corporate governance.

  • Example: A finance consultant can optimize cost-effective repatriation strategies.

2. Accelerated Talent Acquisition & Workforce Structuring (HR & Talent Experts)

  • HR consultants can fast-track talent mapping, compensation benchmarking, and employer branding.

  • Example: Instead of building talent pools from scratch, consultants use existing networks for faster hiring.

3. Operational Efficiency & Best Practices (Admin & IT Setup Experts)

  • Experts ensure optimal infrastructure, IT support, and workplace policies.

  • Example: Consultants can guide GCCs in selecting the right city and location based on cost and talent availability.

4. Cultural & Change Management Consulting (Leadership & Training Experts)

  • Leadership consultants help GCCs adapt global work cultures for local teams.

  • Example: Many companies implement the Build-Operate-Transfer (BOT) model for smoother transitions.

How Can GCC Professionals Monetize Their Expertise?

  1. GCC Setup Advisory Firms: Boutique consulting firms specializing in GCC acceleration.

  2. Independent Consulting: Short-term strategic engagements (3-6 months)

  3. Training & Workshops: Leadership and operational best practices workshops

  4. Fractional CXO Services: Interim CFO, CHRO, CTO or COO roles for new GCCs.

  5. Regulatory & Policy Consulting: Ensure seamless legal and compliance adherence for MNCs.

Final Takeaway

For tech leaders, IT firms, and policymakers, GCCs present both challenges and opportunities. The key to success lies in:

  • Positioning SMEs as innovation partners for GCCs, rather than competitors.

  • Upskilling talent in AI, automation, and cloud computing.

  • Leveraging GCC networks for global expansion.

GCCs are here to stay, and their role will only expand. Those who align with this transformation will be the ones shaping India’s tech future.

  • For global companies launching GCCs in India, partnering with experienced professionals accelerates setup, reduces risk, and ensures operational excellence from day one.

  • For professionals, this is a unique opportunity to monetize expertise, build niche consulting practices, and be part of India’s booming GCC growth story.


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