What is a GCC?
Global Capability Centers (GCCs), also known as Centers of Excellence, are structures that centralize high-value-added strategic functions such as:
- Research and Development (R&D)
- Artificial Intelligence (AI) and Machine Learning (ML)
- Financial services and risk management
- Software engineering and cybersecurity
Global Capability Centers offer strong benefits:
- Cost Optimization: By consolidating operations in a single center of expertise, companies can reduce costs while centralizing rare skills.
- Process Standardization: GCCs enable the creation of standardized processes to ensure uniform service quality worldwide.
- Support for Innovation: By concentrating rare skills, GCCs lead innovation projects that serve the company globally. They also develop specialized teams for analyzing large data sets to support decision-making and drive business growth.
- Operational Agility: These centers facilitate better global coordination, making companies more responsive to market changes.
Any company can adopt such a strategy internally, but sectors like banking, technology (Google, Microsoft), pharmaceuticals (Novo Nordisk, Novartis, Sanofi), manufacturing (Chevron, Hitachi), and automotive (Ford, General Motors) are among the main investors in these centers.
India: The Global Laboratory for Global Capability Centers
With projections of over 1,900 GCCs by 2025, India is asserting itself as the nerve center of global tech operations. In 2023, about 1.66 million people were employed in these centers, and this figure is expected to surpass 2 million by 2025 (source: Nasscom). For years, India has benefited from a robust tech ecosystem and a vast pool of skilled talent in fields like software engineering, data analytics, and financial services.
Today, it’s not just cost savings that attract multinationals to establish their GCCs in India. The country has become a strategic hub for advanced tech operations. Nearly a third of major companies’ global engineering activities are now centralized in India, especially in high-tech sectors like aerospace, defense, and semiconductors. Companies like Hitachi Energy, Temenos, and Micron are developing robust R&D capabilities there, underscoring India’s key role in next-generation technologies.
Artificial Intelligence and Machine Learning (ML), in particular, are driving this new wave of innovation. With over 500 centers dedicated to these technologies, India demonstrates an unwavering commitment to adopting futuristic solutions. This opens the door to numerous specialized roles, such as quantum architects or robotics engineers, enhancing India’s appeal as a global tech destination.
The rapid growth of Global Capability Centers in India is also marked by a significant rise in R&D centers, which are developing 1.3 times faster than the overall GCC sector (source: Zinnov x Nasscom). In parallel, the data science and AI sector is growing annually by 20.2%, with a market expected to reach $7.8 billion by 2025. These developments highlight India’s ability to cultivate a highly skilled workforce, with 2.5 million STEM (Science, Technology, Engineering, and Mathematics) graduates each year.
India, as the “GCC capital of the world,” is not only a technological leader but also embraces the responsibility to nurture talent, drive innovation, and build a sustainable and inclusive future for global businesses.
GCCs in the Rest of Asia
India is not the only country attracting Global Capability Centers, although it is a leader in the field. The entire Asian region is a goldmine for international companies seeking to establish strategic centers, with many countries offering key advantages:
- Malaysia: Strengthening its position as a preferred hub for multinationals, with over $14 billion USD in Foreign Direct Investment (FDI) in 2021 (source: MIDA). The country, particularly Kuala Lumpur, has about 1.3 million people working in high-value-added industries, providing a favorable economic environment for GCC success.
- Vietnam: Around 1.5 million employees work in various sectors benefiting from foreign investments, especially in technology and data services. The Vietnamese government prioritizes investments in tech, engineering, and data analytics, making cities like Ho Chi Minh City and Hanoi attractive destinations for GCCs (source: ASEAN Stats).
- The Philippines: With over 300 GCCs in 2023 (source: trade.gov), the Philippines attracts major international companies establishing their strategic operation centers, making it a rapidly growing strategic hub.
This well-developed neighboring ecosystem strengthens India’s position as a tech and innovation powerhouse within Asia.
LittleBig Connection: A Strategic Partner in the GCC Ecosystem
LittleBig Connection stands out as a crucial strategic partner for large companies creating and managing their Global Capability Centers (GCCs) in Asia. With expertise in sourcing highly specialized technical talent, we provide privileged access to advanced skills in key fields like tech, engineering, and digital, capable of driving global projects.
Operating in over 50 countries, our global network allows clients to tap into a pool of qualified talent, perfectly suited to the complex and constantly evolving needs of GCCs. With experience supporting numerous clients, we excel at identifying niche skills and guaranteeing the key success factors for GCCs.
Our consultants, experts in project management, international stakeholder relations, and effective communication (notably in English), play a crucial role in achieving high-value-added strategic missions. This unique combination of technical expertise and mastery of global management makes LittleBig Connection an essential partner for optimizing GCC performance and ensuring long-term success.
Conclusion
Establishing Global Capability Centers (GCCs) in India is much more than just cost optimization. With one of the largest and most qualified technical talent pools in the world, India is a driver of digital innovation and technological transformation. The country offers access to a highly skilled workforce.
By choosing India, multinationals can not only reduce operational costs but also benefit from a solid technological infrastructure. With forecasts of the GCC market in India exceeding 2 million employees by 2025, it’s clear that India offers a dynamic and resilient ecosystem for companies seeking to expand internationally.
For a multinational looking to strengthen its competitiveness, accelerate innovation, and maintain operational agility, India is not just an option—it is the destination of choice.
