India’s Global Capability Centres (GCCs) are transforming from traditional cost-saving back offices into important hubs for artificial intelligence (AI) and digital innovation. Initially set up for operational efficiency, these centres are now key players driving AI-led growth for global companies.
With over 1,800 GCCs employing nearly 2 million professionals, India is now the world’s top location for global tech and business operations. By 2030, GCCs are expected to contribute 3.5% to India’s GDP, highlighting their increasing strategic and economic importance.
Generative AI Takes Centre Stage
According to EY India’s GCC Pulse Survey, nearly 70% of GCCs are actively investing in generative AI (GenAI) initiatives, and 78% are upskilling their workforce for these new technologies. From predictive analytics and process automation to autonomous decision-making, AI is changing how GCCs provide business value and innovation.
“GenAI will have an impact across nearly every domain,” said Sunil Gopinath, CEO of Rakuten India, which manages around 40% of the Japanese company’s global tech operations. The Bengaluru-based GCC has already created SixthSense, an AI-driven platform that analyzes infrastructure, applications, and user experience data to predict and resolve issues before they occur, which reduces downtime and improves efficiency.
From Pilot Projects to Scaled AI Adoption
Across industries—including retail, pharmaceuticals, and financial services—GCCs are advancing along the AI maturity curve. They are moving beyond pilot projects to scale AI solutions in various business functions.
For example, Takeda Pharmaceutical Company has launched an innovation centre in Bengaluru focused on AI-led digital transformation. Likewise, Walmart Global Tech India is using local expertise to develop a wide range of AI solutions. “Our India teams are building everything from Agentic AI to core infrastructure,” said Suresh Kumar, Chief Technology Officer and Chief Development Officer at Walmart Global Tech.
This shift shows that Indian GCCs are moving from operational tasks to leading end-to-end innovation that drives global enterprise transformation.
Rising Demand for AI and Tech Talent
As AI use grows, so does the demand for specialized technical skills. The GCC Tech Talent Landscape Report noted a 5-7% rise in hiring between July and September 2025, mainly due to the need for expertise in GenAI, data science, cloud engineering, and site reliability.
Jobs in AI and data science saw an 8% increase in recruitment. At the same time, GCCs are expanding in FinOps, cybersecurity, and platform engineering to support strong, secure, and scalable operations.
To sustain this momentum, many GCCs are now prioritizing employee reskilling and upskilling programs, helping teams adjust to rapidly changing AI-driven workflows. However, readiness is still evolving. “Many employees still aren’t fully comfortable using AI tools,” said Gopinath. “Training is essential to help them integrate AI effectively into daily work.”
Expanding Beyond the Metro Hubs
Despite rapid growth, nearly 95% of GCCs are still located in six major Indian cities—Bengaluru, Hyderabad, Chennai, Pune, Gurugram, and Mumbai. To address this concentration, government initiatives are encouraging expansion into Tier-II cities like Kochi, Ahmedabad, Coimbatore, and Bhubaneswar, where costs are lower and access to local talent is improving.
This geographic spread could further enhance India’s reputation as a center for innovation, promoting inclusive growth and tapping into new talent pools.
The AI Maturity Gap
While the potential is significant, the path to full AI maturity is uneven. Industry benchmarks indicate that only 8% of GCCs have reached full innovation maturity, with most still in the pilot or testing phase.
The challenges are varied—ranging from issues with data quality and integration to the complexities of managing AI ethics, compliance, and scalability. As Subir Mehra, Partner and GCC Sector Leader – Financial Services at EY India, noted, “Even though GenAI offers great potential, navigating India’s complex tax, labor, and data protection regulations remains a crucial challenge.”
Additionally, cybersecurity has become a major concern, as more companies depend on AI systems that handle large amounts of sensitive data. GCCs are now focusing on advanced security measures to prevent breaches and ensure compliance.
Balancing Innovation with Responsibility
While AI offers speed, agility, and predictive intelligence, it also requires careful governance. “The next big test for GCCs is operationalizing AI responsibly, balancing speed with control,” said Nilesh Thakker, President of Globalisation Excellence at Zinnov.
This includes developing frameworks for AI ethics, ensuring transparency in decision-making, and implementing responsible AI practices that meet both business goals and regulatory standards. Companies are increasingly setting up AI governance teams to review models, identify bias, and manage explanations.
The Road Ahead: From Service Delivery to Strategic Innovation
In spite of these challenges, experts remain optimistic about India’s growing role in global AI development. “For global companies, India’s GCCs are key centers for strategic innovation, AI platform development, and world-class engineering talent,” said Mehra.
As GCCs progress from AI testing to full-scale deployment, their success will depend on how thoroughly they integrate AI into core business activities—transforming areas like customer experience, supply chains, finance, and risk management.
The next phase will also involve creating intellectual property (IP), as GCCs start designing proprietary AI platforms and frameworks for global use. This shift from execution to innovation will not only improve competitiveness but also strengthen India’s standing in the global tech industry.
A Trillion-Dollar Opportunity in the Making
Industry analysts estimate that India’s GCC market could reach $99-105 billion by 2030, providing jobs for over 2.4 million professionals. The next two years will be crucial as GCCs transition from pilot projects to full-scale AI operations—a phase that will determine whether India secures its status as the world’s innovation leader.
As global companies increase their AI adoption, India’s GCC ecosystem is set to become their backbone for innovation, shaping the future of work, business, and technology in one of the world’s fastest-growing digital economies.
