What started as a global r&d of Texas instruments in 1985 has grown on to become the GCC sector of 65$ billion contribution to GDP and 105$ billion by 2030. GCCs today employ 1.9 million, projected to grow 2 million plus.
But global growth is stabilizing as inflation nears target levels. But India is leading the growth from the forefront.
Goldman Sachs global investment research states AI adoption could drive a 10-15% boost to global GDP, over a 10-year period. India and other emerging market economies have gained share while developed market economies have lost share.
Professional consulting, and research and development have increased their share among service exports. Fifty six percent of total GCC revenues in India is contributed by engineering r&d.
“Why are we so bullish? Because of our demographic dividend – no other country can provide the scale and the expertise for the global operations,” says Gunjan Samtani, Co-Chairman of Goldman Sachs in India and Country Head of Goldman Sachs Services India, on the sidelines of ET GCC Growth Summit 2025, held in Hyderabad.
Samtani says he is most inspired by skill india initiative: 400 million people to be trained across varied capabilities including AI.
“The hallmark of a high performing GCC is these offices have become true transformation hubs,” he iterates. Identity creates a binding glue and culture inheritance sets the tone for the integration. Talent is about creating career paths. That is the sustainability aspect of GCCs too, says Samtani.
Road to Telangana 2.0:
Keeping in view the low labour arbitrage, multinational corporations have choosen India. “We now have to value add to GCCs and become power centers of technology,” says D. Sridhar Babu, Honourable Minister for Information Technology, Electronics & Communications, Industries & Commerce and Legislative Affairs, Government of Telangana
India and Telangana are entering a new era and Hyderabad hosts cutting edge technology. Telangana 2.0 aims to innovate and shape the vision for global industries, believes Babu.
“The future is about creating impact- we would shift our vision Telangana growth trajectory from GCC merely providing services to becoming global value centers,” he says.
GCCs and the changed perception of the state:
“Cost arbitrage is definitely a factor. The importance of the fact is diminishing. But you are getting a high quality talent. Other things people look up to: Ability of the talent to be sensitive to timelines and be disciplined.
A decade ago Hyderabad was seen as a services location and employees were seen as mere statistics. GCCs culture has changed this perception and the impact has been positive,” says Jayesh Ranjan, IAS, Special Chief Secretary for Information Technology, Electronics & Communications and Industries & Commerce Departments, Government of Telangana.
“Talent drives success of GCCs. The cultural aspect, mindset aligning to global objectives become important while gathering the workforce,” says Genevieve D’Souza, Managing Director, Head of Global Finance and Business Management, India Corporate Centers, JP Morgan Chase.
But we cannot rest on our laurels believes Ranjan. The feedback he receives – on quality of talent and infrastructure – points to a path to improvement, he adds.
“We have created consortiums for several verticals of GCC- like finance and life sciences. The plan is to organize similarly for other upcoming verticals. The tangential impact is on attrition,” he adds.
Modern Global Capability Centers as Re-invention Engines
Kanwar Singh, Senior Managing Director, Global GCC Market Lead, Accenture in India believes there are two types of biz in the world left- business of tech and tech enabled business. “No better place to build your core than India,” says Singh.
Manoj Menon, Managing Director and Chief Administrative Officer, India Global Centers, Morgan Stanley, describes the stages of GCCs’ evolution, “set up, scale up, transform where ownership moves to India.”
“Because there are manufacturing companies coming in, the services hub is also being set up here. That is transformative,” says Menon.
Evaluating new breed:
India has witnessed a game-changing entry of agri, education, hospitality, energy, public accounting, and luxury retail GCCs.
Monica Pirgal, VP & Site Head, Neiman Marcus Group notes as luxury retail is a niche segment, there are unique challenges to navigate.
“Fashion retail is a different sector and there isn’t ready talent, unlike that for BFSI, IT , etc. We had to hire and upskill.
Building confidence regarding the stability of the sector was necessary. We had to adapt to the regulatory landscape as well. And adapt to cultural nuance.
But we have a late comer advantage. By exchanging notes we can leapfrog faster. And retain talent due to lesser competition in the space,” she adds.
Challenges in building talent in niche areas- it’s the hardest thing to do. “We do have talent in specific places. We have to set up one on one relationships, set up phd pipelines, discuss projects with them, take other engineers and convert them to battery scientists and attract them with RSUs,” says
Chandra Saru Saravanan, Head of India Operations, Enovix.
But talent retention is hard too. “Give them challenging problems, space and get out of their way. Works like a charm,” says Saravanan.
Similarly, public accounting is a new, niche sector. The task is to build a talent base similar to that of the US without geographical barriers coming in the way, says Balaji Iyer, India Managing Partner, Moss Adams.
Today, two decades post Texas Instruments’ first R&D center, Global Capability Centers have undergone a dramatic shift—from serving as offshore support hubs to becoming strategic engines of transformation and innovation.
Today, GCCs are no longer just execution centers; they are taking on full ownership of business-critical functions, driving enterprise-wide digital transformation, and shaping future-ready operating models.
But what will help leapfrog to global domination and impact is building global leadership, drawing innovation with emerging tech like AI, ML, blockchain and creating a culture that builds and nurtures high potential talent.
Rewrite this news article and keep the same structure, information and length. Only change the language used.
