The technology world has entered into yet another transformative phase with 2025.
The year 2025 is defined by intention-driven innovation, where forward-thinking leaders across industries will embrace advanced digital technologies with a purpose-driven mindset.
But what is GCCs’ position in this evolution? We will discuss this, along with the top trends for GCCs in 2025.
Where Do GCCs Stand In This Evolution?
Global Capability Centers (GCCs) are at the forefront of this evolution and drive organizations to harness the full potential of cutting-edge technologies.
Specifically, artificial intelligence will shape almost every facet of businesses and society.
Innovations from GCCs, such as wearable technologies that anticipate medical challenges and predictive analytics that automate and optimize global supply chains, will redefine industries while creating meaningful global impact.
But that’s not all.
GCCs are poised to reshape organizations’ approach to collaboration and talent development.
They are encouraging a culture of
↳ Inclusivity
↳ Adaptability
↳ Continuous learning
With these, they are not just solving the current challenges but are also building the capabilities to lead in an ever-changing future.
And what does this mean for India?
Keep reading to know.
Exponential Growth of GCCs In India
India is a witness to exponential growth in the number of Global Capability Centers (GCCs)
That’s okay.
But what does the growth of GCCs imply for the nation?
In simple words, the growth of GCCs in India implies the creation of significant employment opportunities across various sections.
↳ 2024: India had around 1,700 GCCs, employing approximately 1.9 million people.
↳ As per the industry predictions, this number will soar up to 4.9 million employees by 2030, with around 3,000 GCCs operating in the country.
↳ The industry reports further reveal that the sector is expected to grow this year (2025) by 36%, adding around 700 to 800 new centers.
Conscious Shift Toward Tier II Cities: The IT Clusters In India
Shift towards tier 2 cities
With 90% of GCCs located in metro cities, such as Bengaluru, Delhi-NCR, Mumbai, Hyderabad, Pune, and Chennai, India is a prime location for GCCs.
A breakdown of the percentage of GCCs, as collected by and shared by NASSCOM in these cities, is as follows
↳ Delhi-NCR – 15-16% GCCs
↳ Mumbai – 10-11% GCCs
↳ Hyderabad – 12-13% GCCs
↳ Pune – 9-10% GCCs
↳ Chennai – 9-10% GCCs
↳ Bengaluru – 34-35% GCCs
While Bengaluru is known as the ‘Silicon Valley of India,’ Hyderabad has made its mark as a burgeoning IT hub. Chennai, a hidden gem with a solid industrial foundation, top-notch educational institutions, and a rapidly growing sector, offers a unique advantage.
However, the surprise elements are the tier II and III cities that are emerging with robust infrastructure required for GCC operations at an affordable price.
Government Efforts To Reskill and Upskill Workforce
Initiatives such as Skill India and corporate and academic partnerships have effectively ensured the workforce is reskilled and upskilled. Thus creating a sustainable talent pipeline.
Each successive improvement overcomes the initial obstacles and establishes a significant competitive advantage. This further improves India’s appeal to GCC compared to other countries.
All said and done, let’s look at some of the trends to watch out for in 2025.
GCCs Trends to Watch Out in 2025
GCC trends to watch out in 2025. Big shifts are coming, putting India ahead of the league.
GCCs this year will witness a significant shift from traditional sectors and hiring practices to strategic value creation.
Keeping that in mind, here are some trends to watch out for in 2025.
🟠 There will be a huge increase in new skill sets, such as AI, data science, and cloud computing. The rise of AI will fuel the demand for these new skill sets.
Reason: Around 20-30% of work being sent to GCC requires skill in AI, cloud computing, and data science.
And this number is expected to grow by up to 40-50% by 2030.
🔵 Traditional sprawling campuses of GCCs will give way to agile workspaces, managed office spaces, co-working spaces, and hybrid models.
According to some thought leaders, Microsoft is said to be offering about 200 square feet per person in the Hyderabad campus.
The costs of fit-outs and tech infra for GCCs are seen to be going up to even Rs 5,500 per square foot – way higher than the norm of Rs 1,800.
In short, the trend toward larger GCCs is expected to persist.
🟠 Organizations have become laser-focused on optimizing their selling, general, and administrative (SG&A) expenses, which represent 12-18% of an enterprise’s total expenditures.
More than 35% of Fortune 500 companies actively seek to shift a significant portion of their SG&A functions to offshore GCCs.
And with India poised to capture 40% of this market, the entire growth translates into a huge $210 billion opportunity.
GCCs in India are delivering more than 50% net cost optimization to their parent enterprises.
But this is not all.
As compared to the developed countries, the average salaries in India and the Philippines are about 50-70% lower.
Result: Significant cost savings.
🔵 Another trend to watch out for is the rapid expansion of GCCs in India to Tier II cities, such as Coimbatore, Indore, Mangalore, Bhubaneswar, and Jaipur.
These cities are emerging as talent hubs with highly skilled workforce, lower operating costs, and higher employee retention rates as compared to Tier I cities.
🟠 Heavy investments from Indian State governments targeting GCCs. They are creating policies that target GCCs and attract investments, such as the current Karnataka GCC Policy 2024-2029.
Indian states like Telangana, Madhya Pradesh, Maharashtra, and Uttar Pradesh offer compelling incentives that include tax breaks and infrastructural support.
The increased competition between the states offers a wide range of options and favorable conditions to GCC investors.
Final Words
All these trends suggest India is poised to become an unquestionable choice for GCC investors. With AI and automation breakthroughs, GCCs are now capable of moving human capital to more transformational roles from transactional roles.
What do you think of these trends in GCC?
Please share your views in the comments. We would love to hear from you.
