Ecosystem builders: Role of GCCs in strengthening India’s innovation space
GlobalCapability Centres (GCCs) are specialized units set up by multinational companies to oversee and streamline core business functions ranging from IT and R&D to HR, finance, and analytics across geographies. India has slowly and steadily become the global leader in the GCC landscape, hosting over 1,800 centres that employ 1.9 million professionals and contribute nearly $65 billion annually to the economy.
As we navigate an era defined by artificial intelligence, digital transformation, and unprecedented use of emerging technologies, these GCCs will not be mere participants but will actively contribute to India’s emergence as a global innovation powerhouse.
Since their inception, India’s Global Capability Centres (GCCs) have moved beyond their traditional role as operational centres used to optimize costs. They now form the key pillars on which the country’s digital innovation ecosystem stands. These centres now play a crucial role in advancing artificial intelligence, cybersecurity, analytics, and sector-focused R&D, positioning India as the epicentre for multinational firms seeking scalable talent, proven technological expertise, and a future-ready innovation ecosystem.
At the forefront of this growth and transformation is Telangana, particularly Hyderabad which today hosts over 355 GCCs employing more than 300,000 professionals. The city added 70 new GCCs in 2024-25 alone and now accounts for 21 per cent of the total GCCs in India.
Bridging Global Enterprise and Local Innovation
One of the biggest strengths of India’s GCCs lies in their acting as bridges, connecting the needs of multinational corporations to the highly skilled and vibrant innovation potential of India. Industry leaders like Microsoft, Goldman Sachs, and Walmart have set up dedicated innovation labs and venture capital programs within their Indian GCCs to nurture promising startups by providing mentorship, funding, and a route to global markets.
In the life sciences sector, 23 of the world’s top 50 life sciences companies now operate in India to take advantage of the vast talent pool and favorable regulatory environment. Global players such as Thermo Fisher, Merck, Eli Lilly, Sanofi, and Boston Scientific have set up multifunctional GCCs in India to support and advance global operations, IT, analytics, and innovation. Such collaborations are mutually beneficial and enrich the entire ecosystem. On one hand, they enable fresh ideas of the Indian talent ecosystem to mature into viable technologies and businesses. On the other hand, GCCs gain access to innovative solutions that address complex global challenges.
Telangana’s GCC ecosystem in particular excels in bringing about such collaborations. The government’s GCC specific policies have established it as a hub for academia-GCC collaboration, with institutes like IIT Hyderabad and IIIT Hyderabad leading the way. The state boasts over 50 specialised programmes in emerging fields such as AI, autonomous vehicles, 5G/6G, and fabless chip design, supported by over 50 GCC curriculum partners and over 20 funded tech projects.
Transforming India’s Innovation Ecosystem
Indian GCCs have moved far beyond back-office processing to become innovation catalysts deeply embedded in digital transformation initiatives, with over 70 per cent actively leading such efforts for their parent companies. Notably, around 78 per cent of these centres are heavily investing in cutting-edge technologies like generative AI and advanced analytics, underscoring their role as innovation engines.
Thus, GCCs have become the connective tissue between global enterprise needs and India’s innovation capabilities, creating a unique ecosystem where multinational corporations, startups, and academic institutions collaborate to solve complex global challenges
This shift has transformed not just tier-1 cities such as Bengaluru, Hyderabad, Pune, Chennai, and Mumbai but also tier-2 cities such as Warangal, Vadodara, and Nashik into vibrant innovation ecosystems where GCCs collaborate with startups, academic institutions, technology parks, and venture capital firms.
Government Support and Infrastructure
The Indian government plays a crucial role in enabling GCCs through initiatives like the Software Technology Parks of India (STPI), Atal Innovation Mission, Digital India, and Production Linked Incentives (PLI). These policies have fortified digital infrastructure and simplified regulatory processes, encouraging the spread of GCCs into Tier-2 and Tier-3 cities such as Kochi, Indore, and Coimbatore.
Telangana has been at the vanguard of state-level initiatives supporting the GCC ecosystem. Its initiatives such as the single-window clearance system through TS-iPASS (Telangana State Industrial Project Approval and Self Certification System) have improved ease of doing business for GCCs by reducing bureaucratic hurdles and enabling faster setup.
Besides various state and central-level policy interventions, India’s robust physical and digital infrastructure serves as a vital catalyst for growth. Physical infrastructure consisting of Digital Economic Zones and Plug & Play infra, along with digital infrastructure advancements like Unified Payments Interface (UPI) and the India Stack, provide a robust platform not just for daily GCC operations but for developing scalable solutions applicable globally.
Building a Future-Ready Talent Pipeline
Talent development is a cornerstone of the GCC ecosystem. India produces over 1.5 million engineering graduates annually, and GCCs serve as crucial finishing schools that transform these graduates into industry-ready professionals. There are three major ways in which GCCs help in not just building a future-ready talent pipeline but also utilizing it:
Hiring Freshers:This not only supports the expansion efforts of the GCCs but also contributes to cost optimization and development of a balanced organizational pyramid
Partnering with Academia:GCCs often have dedicated initiatives to develop talent inside universities. For example, Novartis has the NEST (Nurturing Excellence, Strengthening Talent) initiative, which reaches students across tier-2 and tier-3 cities and gives them a chance to solve real-world clinical development challenges using AI and data science with mentorship from Novartis experts
Assessing Candidates through Internships:The internships offered by GCCs are not just short-term learning opportunities but serve as a proving ground for potential future hires
Looking Toward 2030: The Ecosystem of the Future
India’s GCC ecosystem significantly contributes to employment and economic growth, with projections indicating the number of GCCs expanding beyond 2,100 by 2030 and workforce numbers reaching between 2.5 to 2.8 million. The market value of GCCs is expected to approach $100 billion, reinforcing the sector’s strategic importance.
Telangana is well-positioned to capture a significant share of this growth. The state’s ambition to contribute substantially to India’s digital economy, combined with its proven track record in attracting and nurturing GCCs, suggests that its GCC ecosystem will continue to expand both in terms of numbers and sophistication. The focus on extending the GCC presence to tier-2 cities within the state will further democratize economic opportunities and create inclusive growth.
These GCCs, strengthened by government initiatives and academic partnerships, are fostering a unique innovation model that blends the scale of multinationals with the agility of startups. This positions India not just as a service hub but as a co-creator of global innovation, ready to deliver scalable solutions in sustainability, healthcare, and social impact as digital transformation accelerates, setting the stage for India to emerge as a global innovation powerhouse in the coming decade.
(The author is CEO & Founder of Healthark)
(This article is jointly brought to you by World Trade Center Shamshabad & Future City and Healthark, as part of a knowledge series supporting Telangana’s aspiration to become a $1 trillion economy)