7 Proven Steps to Build a Successful GCC in India

India is the most preferred location worldwide to set up a Global Capability Center (GCC) in 2025, with the number of these centers rising from 1900 to over 2100 by the year 2028. Such centers perform the function of being strategic hubs of global companies, from where they can implement new ideas, increase their operational efficiency and, even, their competitive advantage.

The setting up of a GCC in India is an excellent move as it is not only a hub of talented human resources, but it also offers cost effectiveness, has a technology ecosystem which is on the rise, and is supported by a good regulatory environment putting India in a position of global business operations power.

Strategic Advantages of Setting up GCCs in India

Several prominent factors emphasize India’s competitive advantage in the GCC landscape.

1. Extensive Talent Pool: India churns out over 1.5 million engineers annually who acquired professional technical knowledge in technologies like artificial intelligence, machine learning, big data analytics, blockchain, and so on that makes the nation a high-tech proficient and English-speaking skilled labor provider. The availability of human resources for the tech and business sectors in different locations propels the mobility of the GCC with lesser constraints.

2. Cost Optimization: The operational cost of a company in India using the lower labor and infrastructure costs are reduced by 40-60% is the idea Western countries are trying to achieve in India. Moreover, the blossoming of tier-II and tier-III cities not only alleviates the issue of cost-efficiency but also makes use of the availability of regional talents.

3. Expanding Digital Ecosystem: The Indian digital economy is expected to be worth more than $1 trillion by 2030. Besides that, digital India, a government initiative, along with Aadhaar, UPI and e-governance as an infrastructure, enables the creation of a stable, scalable space which is not only for Indian but also for foreign companies to leverage and flourish their business in the global market.

4. Innovation and R&D Focus: The extent to which Indian Global Capability Centers (GCCs) are transforming from the typical back-office support systems to the Global Centers of innovation for research, technical improvement, the latest technologies usage, and so on attracts much of the R&D investments.

A creative ecosystem is thus necessary to stimulate the participation of new ventures, higher education institutions, and corporations for the joint work of co-ownership of the intellectual property rights and the consequent digital transformation of businesses.

7 Stepwise Approach to be Successful GCC Setup in India

 A defined, structured, and systematic approach is the key to success of a GCC. Some of the fundamental steps are:

1. Set Clear Business Objectives: The scope of forming a Global Capability Center (GCC) should be explicitly mentioned to include such functions as IT services, analytics, finance, or customer experience. Also, objectives should be liaised with global organizational goals to achieve strategic coherence.

2. Location Selection: This is primarily about making a location choice having to do with one of the major hubs i.e., Bengaluru, Hyderabad, Pune, Chennai, and Gurugram. Selection could depend on availability of talents, infrastructural quality, cost considerations, and business ecosystem. Also, Tier-II cities that are no longer marginalized and are fast becoming the cusp of new opportunities due to government incentives.

3. Involve Local Experts: Why don’t you associate with local advisory firms to get the industry and regulatory compliance along with legal issues, orderly management in infrastructure setting up, and recruitment for a smooth and perfectly executable performance.

4. Operating Model and Governance: Indicate the governance structures (captive, Build-Operate-Transfer, or joint ventures) along with KPIs, reporting standards, and data security protocols that comply with global data privacy norms.

5. Talent Acquisition and Retention: Strengthen an employer brand, introduce creative hiring methods and make available training programs that will not only lure the best talent but also help in creating a workforce that is future-ready. Prioritize leadership development and reskilling as part of the long-term strategy for sustainability.

6. Technology and Infrastructure Investment: Secure the necessary steps to ensure a robust IT infrastructure, take advantage of cloud capabilities and collaboration tools, and make the systems operationally resilient and efficient through automation.

7. Culture and Engagement: A positive work environment with the combination of shared global and local values, cross-cultural training, and employee well-being programs, have become essential for productivity and retention, can be developed.

Technological and Regulatory Context

India has well-built cybersecurity and data security frameworks, adheres global ISO guidelines, and is compliant with data protection laws. Such measures mitigate the risk of data compromise in sensitive activities. Besides, the "Make in India" and "Digital India" ventures have certain regulatory alterations and policies that facilitate business operations in the country by giving tax exemptions, simplifying FDI regulations, and providing investment benefits, thus, accelerating the dispersion of GCC.

Market and Industry Insights

•  The IT-ITeS sector makes up almost 49% of India’s GCCs, followed by BFSI with 17%, while the sum of healthcare, engineering, consulting, and telecom is 19%.

• More than 70% of Fortune 500 companies have their GCCs in India, which is a signal of the global trust in India’s capabilities.

• By their remarkable transformations from mere support to becoming strategic centers, Indian GCCs are not only setting new global standards but also winning the race in AI, digital transformation, and customer experience innovation.

Final Results:

India has emerged as the top destination for all types of Global Capability Centers (GCC) in 2025 due to its abundant talent, competitive prices, supporting governmental frameworks, and strong innovation culture.

Should organizations adopt this strategic approach, then it would be possible for businesses to harness and reap benefits from the Indian GCC (Global Capability Center) operations corresponding to the triad of growth potential, operational excellence, and global competitiveness.

We at Shift Ahead are ready to help your company achieve its GCC goals in India. Contact Shift Ahead today