When India initially adopted the Global Capability Center (GCC) model, these hubs were primarily seen as cost-saving operations focused on back-office support and operational efficiency. However, in less than twenty years, that perception has changed significantly. By 2025, India will host over half of the world’s GCCs, and their function has evolved well beyond mere cost reduction. They are now recognized as vital engines of innovation, research, and global leadership. This transformation is not merely numerical; it is also qualitative. In the first quarter of 2025 alone, over 16 new GCCs were established, and forecasts indicate that India’s count will grow from 1,900 to nearly 2,400 by 2030.
More importantly, GCCs are being redefined as innovation bridges that connect global corporations with Indian startups, integrate industry with academia, and establish digital ecosystems that extend beyond their immediate objectives. The true narrative of GCCs in India is about creating value rather than just cutting costs. The early phase of GCCs was characterized by transactional relationships, focusing on support services and customer care. However, companies have increasingly realized that India’s vast talent pool of 2.5 million professionals, in conjunction with a developing digital infrastructure, can offer much more. Research and development, product design, market analytics, and even global strategy roles have shifted to India.
As I recently mentioned in a discussion with industry peers, “India’s GCCs are no longer mere extensions; they are engines of innovation.” This change reflects not only corporate strategies but also India’s overall technological advancement, where Tier-2 cities are now equally relevant alongside traditional hubs like Hyderabad and Bengaluru. Startups thrive on flexibility, experimentation, and rapid execution, while GCCs provide scale, resources, and access to international markets. Their collaboration creates a natural synergy. GCCs increasingly act as conduits to India’s entrepreneurial ecosystem, running accelerators, partnering with incubators, and establishing venture arms. A notable example is Novo Nordisk’s partnership with ten Indian AI startups, which successfully cut document processing time from 40 hours to just 40 minutes.
This significant boost in productivity exemplifies the potential of startup-GCC collaboration. Startups also gain from these partnerships; a collaboration with a Fortune 500 GCC lends credibility that no pitch deck can achieve. Feedback from GCCs aids them in refining their products, enhancing security measures, and navigating regulatory challenges. It is no surprise that India now has over 15 incubators and more than 40 accelerators linked directly to GCCs. As one founder noted, “When a GCC validates your solution, it is like being fast-tracked into the global market.” Such validation is invaluable. GCCs are increasingly looking to universities, especially in Tier-2 and Tier-3 cities, for both talent and intellectual collaboration.
These partnerships go beyond superficial interactions, involving real projects, practical datasets, and even government-funded initiatives that foster both research and job creation. The outcome is mutually beneficial; academic institutions gain exposure to global challenges and advanced tools, while GCCs secure a consistent flow of trained, motivated professionals. This collaboration is essential for ensuring that India continues to produce the talent necessary for digital transformation. Today, many GCCs are as active on university campuses as they are in office buildings, hosting hackathons, sponsoring conferences, and integrating internships into degree programs. This represents a dynamic knowledge exchange that cultivates an industry-ready workforce from day one. A notable aspect of the evolving GCC landscape is its focus on digital innovation.
Approximately 75-80% of new GCCs are centered on advanced digital technologies such as generative AI, blockchain, big data, and cloud-native architectures. These centers are not merely adopting digital technologies; they are actively shaping the digital landscape. The impacts can be seen at three levels: Talent – GCCs establish clear career pathways for tech professionals, ensuring upskilling in areas like AI, cybersecurity, and automation; Technology – the platforms and frameworks developed within GCCs often set industry standards; Market – by exporting Indian innovations globally, GCCs simultaneously introduce international best practices into the local ecosystem. Consequently, GCCs are evolving into digital ecosystems that are interconnected yet self-sustaining, where ideas, technologies, and talent circulate to generate compounded value.
This evolution is crucial for Telangana and its ambition to become a $1 trillion economy. GCCs serve not only as economic catalysts but also as anchors of innovation. In Telangana, GCCs play a vital role across various sectors, including life sciences, healthcare, advanced manufacturing, and fintech. Their ability to connect startups, academia, and digital frameworks is what distinguishes the state’s growth strategy. The GCC-driven ecosystem ensures that innovation permeates industries, enhancing exports, boosting productivity, and facilitating global partnerships. This diffusion of innovation is what will enable Telangana—and India overall—to advance into a leadership role in the global economy. The transformation of India’s GCCs carries significant implications. We are witnessing a shift of innovation power closer to where talent resides.
The challenge moving forward is to institutionalize this momentum: ensuring that startup partnerships are systematic rather than sporadic, embedding academia-industry connections into the educational framework, and creating digital ecosystems that are resilient, ethical, and competitive on a global scale. India’s GCC narrative is no longer about being the ‘back office of the world’; it is about emerging as the innovation front office of the future. As we look ahead, we can anticipate that GCCs in India will take the lead in strategic priorities such as AI governance, cloud platforms, cybersecurity, and advanced analytics, while also redefining collaboration to co-create solutions with startups, academia, and global corporations in an increasingly complex and interconnected world.
This is the true promise of India’s GCCs, and Telangana is uniquely positioned to realize this vision as it strives for the $1 trillion milestone.