7 Key benefits of setting up GCCs in India

India right now has over 1,700 GCCs currently operating in the country as of 2025, and is now being known as a preferred destination for Global Capability Centers (GCCs). Companies across the industrie ranging from the BFSI (Banking, Financial Services, and Insurance) to technology and healthcare are preferring India’s cost-effective, skilled and innovation-driven ecosystem.

With India’s GCC market now expected to reach $100 billion by 2030 let’s understand the top seven benefits of setting up GCCs in India.

1. Cost Efficiency: Up to 40% Savings in Operational Costs

The greatest advantage of setting up a GCC in India is its cost effectiveness. Now if we were to compare with Eastern Europe, North America and Latin America the operational costs in India are 30-40% lower which makes it an attractive destination for many multinational corporations(MNCs).

• Lower Infrastructure Costs:

 Office spaces and utilities are cheaper than in Western countries.

• Reduced Labor Costs:

 Salaries for skilled professionals are significantly lower than in the US or Europe.

• Government Incentives: 

Tax breaks and investment subsidies further reduce expenses.

Region	Average Annual GCC Cost per Employee (USD)
India	$25,000 – $35,000
Eastern Europe	$40,000 – $50,000
North America	$70,000 – $100,000
Latin America	$45,000 – $55,000

 

2. Access to a Skilled Talent Pool

India has one of the largest talent pools in the world particularly in technology and engineering.

• Around 2.5 million STEM graduates enter the industry every year.
• It is estimated that over 120,000 AI & ML professionals are currently working in India.
• More than 185 AI & ML Centers of Excellence (COEs) support advanced tech innovation.

With a large English-speaking workforce Indian GCCs can serve global markets without language barriers.

 

3. High Productivity & Innovation: More Than Just Cost Savings

Modern GCCs in India don’t just offer cost benefits—they are increasingly focusing on high-value functions such as: 

• Product & Software Development
• Artificial Intelligence & Data Analytics
• Cybersecurity & Risk Management
• Cloud Computing & Automation

 

•  90% of GCCs in India are now multi-functional—handling technology, operations, and product engineering simultaneously.
• Engineering R&D GCCs are growing 1.3x faster than traditional service-based GCCs.

 

4. Scalability & Rapid Expansion

India’s GCC ecosystem has grown by 40% in the last five years, with the number of new entrants rising across industries.

• Current GCC count (2024): 1,700+
• Projected revenue (2030): $100 billion
• Current employment: 1.9 million professionals
• Expected workforce (2030): 2.5 million

Setting up a GCC in India allows companies to scale operations quickly without excessive costs, making it a long-term strategic move.

 

5. Strategic Location & Market Proximity

India’s geographical location makes it a main hub for serving upcoming markets like:

•  South Asia (India, Bangladesh, Sri Lanka)
• Middle East & Africa (UAE, Saudi Arabia, Nigeria)
• Southeast Asia (Singapore, Indonesia, Malaysia)

For global companies India provides an opportunity to serve diverse time zones with a mix of onshore and offshore teams, ensuring 24/7 operations.

 

6. Favorable Business Environment & Government Support

The Indian government actively supports foreign investment in the IT and services sectors, making it easier to set up and operate GCCs.

•  Special Economic Zones (SEZs): 

Offer tax breaks & regulatory relaxations.

• 100% Foreign Direct Investment (FDI) allowed in IT and BPM sectors.
• GIFT City (Gujarat International Finance Tec-City): 

A tax-free financial hub for international businesses.

Factor	India’s Advantage
Corporate Tax Rate	22% (lower than many global markets)
Ease of Doing Business	Ranked 63rd globally, improving rapidly
Government Support	Startup India, Digital India, SEZ benefits

 

7. Technological Advancements & AI Adoption

India’s GCCs are at the forefront of digital transformation, focusing on cutting-edge technologies such as:

• Artificial Intelligence & Machine Learning
• Cloud Engineering & DevOps
• Cybersecurity & Blockchain
• Big Data & Business Analytics

 

• 70% of GCCs are expected to adopt AI-powered automation by 2026.
• Digital transformation investments in GCCs are growing at 25% YoY.

India’s strong IT ecosystem provides global firms with the infrastructure and workforce needed to stay 

Final Thoughts: Why India Is the Best GCC Destination

India’s GCC landscape has transformed from cost-saving back offices to innovation-driven global centers. Companies that set up GCCs in India benefit from:

• Significant cost savings (30-40% lower than the US & Europe)
• A massive, highly skilled workforce
• Faster scaling & expansion opportunities
• Strategic location for serving global markets
• Strong government support & business-friendly policies
• Cutting-edge technology adoption

As India moves towards becoming a $100 billion GCC powerhouse by 2030, companies that invest now will be positioned for long-term success in the global market.

Quick Comparison: GCCs in India vs. Other Regions

Factor	India	Eastern Europe	North America
Talent Availability	High (2.5M STEM graduates yearly)	Moderate	Low
Operational Cost	Low (30-40% cheaper)	Medium	High
Tech Ecosystem	Strong (AI, ML, Cloud, Cybersecurity)	Moderate	Strong
Government Support	Strong (FDI, SEZs, Tax Breaks)	Moderate	Moderate
Market Proximity	South Asia, Middle East, APAC	EU, Russia	US, Canada

 

Want to Set Up a GCC in India? Now is the Time!

Due to the rapid growth and a cost-effective skilled workforce India remains the first choice for GCCs.

Whether you are a tech giant, financial institution, or R&D company, setting up a GCC in India can unlock long-term growth and global competitiveness.

Start your GCC journey today and tap into India’s innovation ecosystem!