In the last 12 years, India has seen remarkable growth in the number of Global Capability Centers (GCCs), rising from 760 in 2012 to over 1,700 in October 2024. By 2025, the country is expected to reach 1,900 GCCs, reflecting a business worth over USD 60 billion. These centers are projected to employ nearly 1.6 million people.
GCCs operate across a wide array of service sectors, including software product development, IT services, BPO, and engineering services, creating significant value across key industries like banking, financial services, insurance, aerospace, oil and gas, healthcare, pharmaceuticals, software, telecom, semiconductors, and automobiles.
The scale of operations in this sector is truly impressive. Multinational companies are increasingly investing in transforming their GCCs into centers of excellence. India's competitive cost structure, supportive government policies, cutting-edge digital infrastructure, and highly skilled talent pool drive this dynamic growth and position India as a global hub for GCCs.
In a country where the game of cricket is considered a religion, If we can run a parallel, GCC is like a 5-day Test match. Every session is important, and various sessions may have ups and downs, as against a 20-20 match where a particular day holds the key to success or failure. Hence, a lot of planning is needed for each session, and the strategy is to build a long inning. "
— Kumar Rajagopalan, Vice President, Strategic Initiatives and Country Head India
Aligning the GCC Strategy with Business Goals
A successful scaling strategy starts with aligning the GCC's mission with the parent company's overarching goals. According to Deloitte’s 2023 Global Shared Services Survey, 71% of organizations that have integrated their GCCs into the global corporate strategy reported higher levels of success in terms of efficiency and value creation. When GCCs are aligned with business goals, they become a core enabler of corporate growth, driving transformation, innovation, and cost optimization.
Integrating GCC shared services with technology-enabled support, such as CFO / CIO reporting, creates an efficient decision-support organization for global teams.
Key Considerations:
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Integration with Business Units: Ensuring that the GCC's support of IT, HR, finance, and R&D aligns directly with the company's global objectives.
Not Just Another Back Office
Scaling a Global Capability Center (GCC) is a transformative opportunity for organizations to drive innovation, enhance operational efficiency, and support global growth. At Dexian India, we are committed to redefining the traditional GCC model, positioning it as a strategic asset beyond back-office functions. GCCs are hubs of innovation, technology, and talent, driving digital transformation and delivering valuable solutions that directly contribute to clients' success.
Key Elements for Successfully Scaling GCCs:
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Talent Development: Scaling involves attracting and nurturing top talent, ensuring continuous learning, and aligning skill sets with evolving business needs. An efficient Talent Support Group is essential, and the recruitment team is the heart of attracting great talent for the GCCs.
“Based on our experience and Dexian global strategy, we invest our energy in building a large and sustainable Talent Support Group. Our experience shows Talent Support Group should be in the ratio of 25:1 (employee: TSG) ratio to attract, retain & nurture various Centers of Excellence in GCCs.”
— Kumar Rajagopalan, Vice President, Strategic Initiatives and Country Head India
Scaling Your Business: Key Steps to Prepare
Before scaling, it's crucial to assess your business's readiness. Evaluate market demand, competition, and internal resources to determine if expansion is viable.
To set the stage for sustainable growth, focus on building a solid foundation:
GCCs Collaborate with Indian Start-ups for Tech Innovation
Global Capability Centers (GCCs) are partnering with India’s thriving start-up and engineering R&D sectors to meet global technology demands. With over 15 incubators, 40+ accelerators, and multiple partnership programs, GCCs foster innovation through various collaboration models, including innovation labs, hackathons, and start-up incubators. Healthcare and pharma GCCs, in particular, are enhancing access to emerging technologies by engaging with start-ups and academia. For example, a healthcare GCC established a digital innovation hub in southern India, connecting with start-ups focused on healthcare solutions. Another innovation hub collaborates with start-ups to develop automation and talent intelligence tools, illustrating the diverse potential of these partnerships to drive impactful technology solutions.
GCCs Transforming into Strategic Hubs for Global Value Creation
India’s Global Capability Centers (GCCs) have evolved significantly post-pandemic, moving from back-office support to key innovation and value-creation drivers. Following the pandemic, services exports from India rose sharply as companies increasingly looked to GCCs for cost-effective solutions amid inflation and global tensions. By 2023, GCCs will be central to developing global solutions and creating new revenue streams.
For example, a global company, India GCC, is advancing digital capabilities through automation, AI, and data governance, while an insurance company’s GCC hub in India is developing digital solutions for international markets. These developments underscore how GCCs are transforming into strategic assets that drive growth for parent organizations.
“Scaling up a Global Capability Center (GCC) in India requires a strong foundation of local talent, technological innovation, and operational efficiency. At Dexian India, we build scalable solutions that integrate cutting-edge technologies while fostering collaboration and knowledge transfer across teams. By aligning with global standards and leveraging India's vast talent pool, we empower businesses to scale quickly and sustainably, turning their GCC into a strategic growth engine."
— Kumar Rajagopalan, Vice President, Strategic Initiatives and Country Head India
Conclusion
Scaling a Global Capability Center (GCC) is a complex yet rewarding endeavor, demanding a well-rounded strategy that integrates cutting-edge technologies, operational efficiencies, risk management, and a strong emphasis on talent development and customer experience. At Dexian India, we prioritize a data-driven approach, ensuring that GCC goals are closely aligned with the overarching vision of the parent company. This alignment drives sustainable growth, optimizes costs, and fosters global business success. By investing strategically in people, processes, and technology, GCCs can transform from cost centers into crucial drivers of innovation that are pivotal in advancing the parent company's strategic objectives.
About the Author
Kumar Rajagopalan exemplifies transformative leadership as Vice President of Strategic Initiatives and Country Head at Dexian. With over 30 years of industry experience, Kumar has propelled Dexian into a global growth powerhouse, redefining the role of Global Capability Centers (GCCs) across international markets. His visionary strategy and pragmatic execution have driven exceptional innovation and operational excellence, positioning Dexian as a leader in its field.
Kumar’s remarkable journey from finance to technology leadership underscores his adaptability and strategic insight. Initially a Chartered Accountant, he seamlessly transitioned into technology, leveraging his expertise to streamline enterprise solutions and system consolidations. His work has enhanced Dexian’s financial modeling and ERP systems, supported successful mergers, and solidified the company's market dominance.
Beyond his corporate achievements, Kumar is deeply committed to Corporate Social Responsibility (CSR). His initiatives, such as the partnership with the Head Held High Foundation, address critical societal issues and empower marginalized communities. Kumar's human-centric approach fosters an inclusive and supportive work culture, balancing professional success with personal well-being. His leadership drives business excellence and creates meaningful societal impact, making him a transformative force within and beyond the corporate world.