The race to establish Global Capability Centres (GCCs) in India is intensifying, with states vying to attract multinational corporations and professional services firms. According to a recent Times of India article, this surge is not just about economic opportunity but also about political maneuvering and strategic positioning. As the GCC landscape evolves rapidly, professional services companies must navigate a complex web of competitive and political factors to establish successful operations. In this article, we delve into the current dynamics shaping the GCC push, reference the latest research, and highlight how Han Digital’s unique insights into talent markets and senior leadership connections can empower your GCC strategy.

Understanding the GCC Boom in India

Global Capability Centres, also known as Global In-house Centres (GICs), are offshore units that deliver critical business functions such as IT, finance, analytics, and R&D for multinational corporations. India has emerged as the preferred destination for GCCs, hosting over 1,600 centres that employ more than 1.6 million professionals (NASSCOM, 2023). The country’s large talent pool, cost advantages, and robust digital infrastructure have made it a magnet for professional services companies seeking to expand their global footprint.

The Times of India report highlights that the current GCC push is not just an economic phenomenon but also a competitive and political one. States such as Karnataka, Telangana, Maharashtra, Tamil Nadu, and Gujarat are rolling out red carpets for global firms, offering incentives, infrastructure, and policy support to outpace their rivals.

The Competitive Dynamics: States in a Race to the Top

The competition among Indian states to attract GCCs has reached unprecedented levels. Karnataka, with Bengaluru as its crown jewel, continues to lead, but Telangana (Hyderabad), Maharashtra (Pune, Mumbai), and Tamil Nadu (Chennai) are closing the gap. States are offering a range of incentives, including tax breaks, plug-and-play infrastructure, expedited approvals, and talent development initiatives.

According to a 2024 report by Deloitte, over 70% of new GCC investments in India are now being influenced by state-level policies and incentives. The report also notes a shift towards Tier-2 cities such as Coimbatore, Kochi, and Ahmedabad, as companies seek to tap into untapped talent pools and reduce operational costs. This decentralization is fostering healthy competition but also creating disparities in talent availability, infrastructure quality, and regulatory frameworks.

For professional services companies, understanding these competitive dynamics is critical. The choice of location can impact everything from talent acquisition and retention to operational efficiency and long-term scalability.

The Political Underpinnings: Policy, Power, and Partnerships

The GCC push is as much a political game as it is an economic one. State governments are leveraging GCC investments to boost their political capital, create jobs, and drive economic growth. The Times of India article points out that political stability, policy continuity, and proactive governance are becoming key differentiators for states aiming to attract marquee GCCs.

Recent research by EY (2024) underscores that policy predictability and ease of doing business are now among the top five decision criteria for GCC location selection. States with clear, investor-friendly policies and strong public-private partnerships are emerging as winners in the GCC race.

However, the political landscape is not without its challenges. Frequent policy changes, bureaucratic hurdles, and inter-state rivalry can create uncertainties for professional services firms. Navigating these complexities requires not just market intelligence but also strong relationships with government stakeholders and industry bodies.

Key Trends Shaping the GCC Landscape in 2025 and Beyond

• Digital Transformation: GCCs are evolving from cost centres to innovation hubs, driving digital transformation for their parent organizations. According to NASSCOM’s 2024 survey, 60% of new GCCs in India are focused on advanced analytics, AI, and cloud technologies.
• Talent Wars: The demand for skilled professionals in AI, cybersecurity, data science, and digital operations is outpacing supply. Professional services firms must adopt innovative talent acquisition and retention strategies to stay ahead.
• ESG and Sustainability: Environmental, Social, and Governance (ESG) considerations are increasingly influencing GCC site selection and operations. Companies are seeking locations with green infrastructure, sustainable energy, and inclusive talent ecosystems.
• Hybrid Work Models: The post-pandemic era has ushered in flexible work arrangements. GCCs are redesigning their workplaces and policies to accommodate remote and hybrid teams, impacting location and talent strategies.
• Regulatory Compliance: Heightened focus on data privacy, cybersecurity, and global compliance is shaping GCC operations. States offering robust legal frameworks and data protection laws are gaining favour.

Challenges for Professional Services Companies Establishing GCCs

While the opportunities are immense, professional services companies face several challenges in setting up and scaling GCCs in India:

• Talent Scarcity: The rapid expansion of GCCs has led to intense competition for top talent, especially in niche digital skills.
• Regulatory Complexity: Navigating diverse state regulations, tax regimes, and compliance requirements can be daunting.
• Infrastructure Gaps: While metros offer world-class infrastructure, Tier-2 cities may lag in connectivity, amenities, and social infrastructure.
• Attrition and Retention: High attrition rates, especially among digital talent, can disrupt operations and impact service delivery.
• Political Volatility: Changes in state leadership or policy direction can impact long-term investment decisions.

Addressing these challenges requires a nuanced understanding of the talent landscape, regulatory environment, and local market dynamics.

Han Digital: Your Strategic Partner in the GCC Journey

As the GCC push becomes more competitive and political, partnering with a firm that understands the nuances of the Indian talent market and has deep connections with senior leadership across industries is invaluable. Han Digital stands out as a trusted advisor for professional services companies looking to establish or expand GCCs in India.

Why Han Digital?

• Unmatched Talent Market Intelligence: Han Digital leverages proprietary research, real-time market mapping, and deep analytics to provide actionable insights into talent availability, compensation trends, and skill hotspots across Indian cities.
• Senior Leadership Connections: With established relationships with CXOs, CHROs, and business leaders across sectors, Han Digital facilitates strategic conversations, executive hiring, and leadership onboarding for new GCCs.
• End-to-End GCC Advisory: From location assessment and regulatory compliance to talent acquisition and employer branding, Han Digital offers comprehensive support at every stage of the GCC lifecycle.
• Customized Solutions: Recognizing that every organization’s GCC journey is unique, Han Digital tailors its solutions to align with your business goals, culture, and growth aspirations.
• Proven Track Record: Han Digital has successfully partnered with over 200 global organizations in setting up and scaling their GCCs in India, delivering measurable outcomes in talent quality, cost optimization, and operational excellence.

Recent Research and Insights: GCC Trends for 2025

Recent studies provide valuable guidance for professional services companies considering the GCC route:

• Deloitte’s 2024 GCC Survey: 85% of respondents cited India as their preferred destination for new GCCs, with talent availability and digital infrastructure as top drivers.
• NASSCOM-EY 2024 Report: Predicts that India will host over 2,000 GCCs by 2025, employing 2 million professionals. The report highlights the rise of Tier-2 cities and the growing focus on digital transformation, ESG, and innovation.
• PwC 2024 GCC Outlook: Emphasizes the importance of leadership hiring, talent retention, and regulatory compliance as critical success factors for new GCCs.

Han Digital’s research aligns with these findings, underscoring the need for data-driven talent strategies, proactive leadership engagement, and continuous market intelligence to stay ahead in the GCC race.

Actionable Steps for Professional Services Companies

To maximize the benefits of the current GCC push and mitigate risks, professional services companies should consider the following steps:

1. Conduct a Comprehensive Location Assessment: Evaluate states and cities based on talent availability, infrastructure, policy environment, and cost structures. Leverage Han Digital’s market intelligence for data-driven decision-making.
2. Engage with Policy Makers: Build relationships with state government officials, industry bodies, and local partners to navigate regulatory complexities and secure incentives.
3. Invest in Employer Branding: Position your GCC as an employer of choice through targeted branding, campus engagement, and diversity initiatives.
4. Prioritize Leadership Hiring: Secure experienced leaders with a strong understanding of the Indian market and GCC operations. Han Digital’s senior leadership network can accelerate this process.
5. Adopt Agile Talent Strategies: Implement flexible hiring models, upskilling programs, and retention initiatives to address talent scarcity and attrition.
6. Monitor Political and Regulatory Developments: Stay abreast of policy changes, elections, and government initiatives that may impact your GCC operations.

Conclusion: Winning in the New Era of GCCs

The GCC push in India is entering a new phase marked by heightened competition, political maneuvering, and rapid transformation. Professional services companies that can navigate this complex landscape, leverage state-level opportunities, and build robust talent strategies will emerge as winners.

Han Digital’s deep expertise in talent markets, senior leadership engagement, and end-to-end GCC advisory makes it the partner of choice for organizations aiming to establish or expand their global capability centres in India. As the GCC landscape evolves towards 2025 and beyond, proactive planning, strategic partnerships, and continuous market intelligence will be the keys to success.

Ready to accelerate your GCC