How GCCs Are Quietly Powering Global Tech Strategy

• In 2025, India’s Global Capability Centers (GCCs) are shifting from cost-efficiency to strategic innovation hubs.
• Over 1.9 million professionals and 1,800+ centers now contribute to product development, R&D, and AI-led innovation.
• Nearly 50% of GCCs have become Portfolio Hubs, managing end-to-end product lifecycles and contributing to global decision-making. 

In 2025, India's Global Capability Centers (GCCs) are undergoing a major transformation shifting from cost-effective support centers to strategic innovation hubs. With over 1.9 million professionals and 1,800+ centers, GCCs are now at the forefront of product development, R&D, and AI-driven innovation. Nearly half of these centers have evolved into Portfolio Hubs, owning end-to-end product lifecycles and playing a vital role in global decision-making processes.

The growth is expedited by India’s vast STEM resources, the proliferation of AI and other futuristic marvels, and the evolution of technology-savvy urban hubs outside of the big metropolises. GCC centres do not only exist in metros such as Hyderabad, Pune or Coimbatore now gaining prominence. This industry is projected to increase the GDP, significantly, from $64.6 billion in 2024 to $110 billion in 2030.

Vikram Ahuja, CEO & Co-Founder, Talent500, highlights, "Global capability centres of the present are setting up for success in the future, backed by innovation and intelligence. They are vastly different from a traditional tech company, working primarily to build value for the headquarters beyond mainstream metrics of growth".

AI is now a core component of operations, with generative AI transforming business functions. As employee expectations shift, GCCs are embracing flexible work models and well-being programs. India’s GCCs are no longer just supporting global enterprises they’re leading the charge in innovation, agility, and digital transformation.

The Evolution of GCCs in the Digital Era

Historically, GCCs were born out of the need for operational efficiency and cost arbitrage. They were designed to centralize routine tasks like IT support, finance, HR, and compliance in regions like India, where the labor cost was lower but the talent was abundant. Yet, over the last decade particularly after the pandemic there has been a phenomenal shift in the character of the GCCs.

Today, GCCs are crucial meeting points for facilitating digital transformation, business strategy development, and encouraging innovation among Fortune 500 companies. This strategic shift is largely driven by the need for agility in an increasingly complex global market. Companies no longer view their GCCs as just execution arms, but as brain centers places where global strategies are drafted, prototypes are built, and innovation is born.

Case Studies: India’s Hidden GCC Powerhouses

RTX Corp’s Bengaluru GCC

• Overview: RTX Corp (formerly Raytheon Technologies), a global aerospace and defense powerhouse, is aggressively expanding its GCC in Bengaluru. It’s tasked with developing digital twins, predictive maintenance systems, and AI-driven simulations for aerospace components.
• Impact: The GCC is co-creating intelligent aircraft maintenance platforms, reducing unplanned downtime and improving fleet readiness for global aviation clients. It has also pioneered digital twin technology that simulates real-world performance in mission-critical defense systems.
• What Makes It Unique: It showcases how a high-security industry like aerospace is trusting Indian GCCs to lead product development not just support. The strategic alignment of innovation with business continuity makes this a standout case.

Provenance (UK) - Pune GCC

• Overview: Provenance, a UK-based social impact tech startup, opened a small but high-impact GCC in Pune, India. The center focuses on building blockchain-based solutions that verify product claims and trace ethical sourcing in global supply chains.
• Impact: The Pune team developed a lightweight blockchain platform that allows small brands to authenticate claims like ‘organic’, ‘cruelty-free’, and ‘fair trade’.  This has increased transparency for end consumers and helped Provenance scale faster across EU markets.
• What Makes It Unique: This small GCC integrates directly with UK product teams and operates more like a product lab than a support center. The team in Pune has full ownership of features from ideation to deployment.

Upfield (Netherlands) – Hyderabad GCC

• Overview: Upfield, known for brands like Flora and Blue Band, built a green-focused digital center in Hyderabad to support its sustainability goals and operational transformation.
• Impact: The Hyderabad GCC developed AI tools to track carbon emissions across the supply chain and optimize plant-based product distribution based on real-time demand analytics.
• What Makes It Unique: It’s one of the few AgriFood GCCs in India focused entirely on sustainability tech. The team’s AI-powered emissions dashboard is now being adopted by other markets within Upfield.

Mohua Sengupta, Managing Director, Mashreq Global Network, says, "As global businesses navigate layoffs, GCCs are poised to absorb roles, solidifying their contribution to India's economy. The GCC journey reflects a transformation from cost-centric to skill-centric, underscoring its enduring significance and growth potential. Over the years, Indian GCC sector has indeed become a ‘Volume + Value’ creator through initiatives, such as demonstrating resilience, sharing success stories of global players, and creating awareness about the government incentives and ecosystem".

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The Untold Challenges of GCCs

Global Capability Centers (GCCs) play an important role in determining global tech strategies, but become locked in thick barriers that hamper operations. Hiring new talents and keeping talented workers in the company are major problems, particularly because mid-sized GCCs have difficulty attracting new hires and retaining an ongoing team. Guaranteeing that skilled workers are retained implies paying competitive wages, high career development and training opportunities, and constant learning opportunities.

At the operational level, GCCs face challenges during streamlining, regulation management, and infrastructure challenges, such as inconsistent power and internet services. Adherence to high customer standards and guaranteeing the installation of effective cybersecurity frameworks are major challenges that are long-term in nature. Digital transformation exacerbates current operational challenges.

This means that GCCs should be keen to manage these barriers through innovation and continuous improvements with an intent to project their strategic value as partners rather than just an operational backend. In order to do so, GCCs must highlight the necessity to address skills shortages, develop partnerships, and remain flexible with constant transformation.

Wrapping It Up!

As the global business landscape continues to evolve, GCCs will be even more critical in shaping the tech approaches in organizations. As they are distinguished by innovation, adaptability and operation efficiency, GCCs are of great importance for multinational corporations in the current fast-changing world. The strategic placement, available talent pool, and innovative thinking of GCCs makes them the main forces for shaping, not simply supporting, global tech strategies.