Introduction: India’s Rise as a Global Capability Centre (GCC) Hub

In the rapidly evolving landscape of global business, India has emerged as a top destination for multinational corporations (MNCs) from the UK seeking to establish Global Capability Centres (GCCs). According to a recent report by Inductus featured on MSN, India’s unique blend of a robust talent pool, cost efficiencies, technological advancements, and supportive government policies is making it the preferred destination for UK-based professional services companies establishing GCCs. This article explores the factors driving this trend, recent research insights, and the pivotal role of talent partners like Han Digital in ensuring GCC success.

Understanding Global Capability Centres (GCCs)

Global Capability Centres (GCCs), also known as Global In-house Centres (GICs), are offshore units established by multinational companies to deliver a wide range of services—including IT, finance, analytics, R&D, and customer support—to their global operations. For UK MNCs, GCCs in India offer strategic advantages, enabling them to drive innovation, achieve operational excellence, and optimize costs while maintaining control over critical business functions.

Why India is the Preferred Destination for UK MNCs Setting Up GCCs

• Abundant and Skilled Talent Pool: India produces over 1.5 million engineering graduates annually and boasts a workforce with deep expertise in technology, finance, analytics, and business services. This talent availability is unmatched globally.
• Cost Efficiency: Setting up and running a GCC in India can reduce operational costs by 40-60% compared to the UK or other Western markets, according to recent industry estimates (Deloitte, 2024).
• Technological Ecosystem: India’s thriving startup ecosystem, world-class IT infrastructure, and rapid digital adoption make it a fertile ground for innovation and transformation.
• Government Support: Initiatives like ‘Make in India’, ‘Digital India’, and relaxed FDI norms have created a favourable regulatory environment for foreign investors.
• Time Zone Advantage: India’s time zone allows for seamless 24/7 operations, enabling UK MNCs to deliver round-the-clock services to global clients.

Recent Research and Industry Trends (2023-2024)

Recent research underscores India’s growing dominance in the GCC space:

• NASSCOM’s 2024 GCC Report highlights that India hosts over 1,580 GCCs, with more than 50 new centres established in the past year alone. The report projects the GCC market in India to reach $60 billion by 2025, with UK-headquartered firms leading the expansion in professional services, BFSI, and technology sectors.
• EY’s 2024 Global Location Trends notes that 70% of UK MNCs planning offshore expansion consider India their first choice due to talent scalability, digital maturity, and regulatory clarity.
• Deloitte’s 2024 GCC Trends in India points out that 80% of new GCCs in India are focused on digital transformation, AI, and analytics—areas where Indian talent excels.
• Inductus-MSN Report (2024) emphasizes India’s “conducive environment” for UK MNCs, citing successful case studies of firms that have achieved rapid scaling and innovation after setting up their GCCs in key Indian cities like Bengaluru, Hyderabad, Pune, and Gurugram.

Key Factors Making India Conducive for UK MNCs’ GCCs

1. Talent Availability and Quality

   India’s education system produces a steady pipeline of skilled professionals in STEM, finance, and business management. English proficiency and a global mindset further enhance employability for UK MNCs. According to NASSCOM (2024), Indian GCCs are increasingly moving up the value chain, handling complex roles in AI, cybersecurity, and data science.

2. Cost Competitiveness

   Operational costs in India are significantly lower than in the UK, covering salaries, infrastructure, and compliance. This enables UK MNCs to reinvest savings into innovation and business growth.

3. Business Continuity and Scalability

   India’s mature outsourcing ecosystem, robust telecom infrastructure, and large talent pool ensure business continuity and scalability. During the COVID-19 pandemic, Indian GCCs demonstrated remarkable resilience, quickly transitioning to remote work and maintaining service delivery for global clients.

4. Government Incentives and Policy Support

   The Indian government offers tax incentives, SEZ benefits, and simplified compliance for foreign investors. Recent policy reforms have made it easier for UK MNCs to set up wholly-owned subsidiaries and repatriate profits.

5. Innovation and Digital Transformation

   India’s GCCs are no longer limited to cost arbitrage; they are now centres of innovation, leading digital transformation initiatives for their parent organizations. UK MNCs are leveraging Indian expertise in AI, cloud computing, cybersecurity, and automation to drive global competitiveness.

Professional Services: The Next Wave of GCC Growth in India

While IT and BFSI have traditionally dominated the GCC landscape, professional services firms from the UK are now driving the next wave of growth. These include consulting, legal, accounting, HR, and risk management services. The Inductus-MSN report highlights that UK-based professional services MNCs are leveraging Indian GCCs for:

• Advanced analytics and data-driven decision making
• Legal process outsourcing and compliance management
• Financial planning, risk assessment, and audit support
• HR, payroll, and talent management solutions
• Client support and digital marketing services

The Role of Han Digital: Powering GCC Success through Talent Intelligence

Establishing a successful GCC in India goes beyond infrastructure and cost savings—it hinges on accessing the right talent and leadership. This is where Han Digital comes in. As a leading talent intelligence and workforce solutions partner, Han Digital’s deep understanding of India’s talent markets and strong connections with senior leadership across industries make them invaluable to UK MNCs setting up GCCs.

How Han Digital Adds Value:

• Strategic Talent Mapping: Han Digital leverages proprietary data and analytics to identify, attract, and retain top talent across technology, finance, analytics, and professional services domains.
• Leadership Hiring: With established relationships with senior executives and functional heads, Han Digital ensures GCCs are led by visionary leaders who drive transformation and innovation.
• Market Intelligence: Han Digital provides actionable insights on compensation trends, skill availability, and competitor benchmarking, enabling UK MNCs to make informed decisions.
• Diversity and Inclusion: Han Digital supports organizations in building diverse and inclusive teams, a key priority for global professional services firms.
• Agile Workforce Solutions: From project-based hiring to long-term talent pipelines, Han Digital offers flexible solutions tailored to the unique needs of each GCC.

Han Digital’s consultative approach and proven track record have helped numerous UK MNCs achieve rapid scaling, high retention, and operational excellence in their Indian GCCs.

City Spotlight: Where UK MNCs are Setting Up GCCs in India

India’s major metropolitan cities offer unique advantages for GCCs:

• Bengaluru: The “Silicon Valley of India” is a hotspot for technology, analytics, and R&D GCCs.
• Hyderabad: Known for its world-class infrastructure and talent in IT, pharma, and professional services.
• Pune: A leading destination for engineering, automotive, and financial services GCCs.
• Gurugram: Preferred by consulting, legal, and financial MNCs for its proximity to the national capital and international connectivity.

These cities offer robust infrastructure, international schools, expat-friendly amenities, and access to a diverse talent pool, making them ideal for UK MNCs establishing or expanding their GCCs.

Challenges and How to Overcome Them

While India offers immense advantages, UK MNCs must navigate certain challenges when setting up GCCs:

• Talent Competition: High demand for skilled professionals can lead to attrition and wage inflation. Strategic talent partners like Han Digital help mitigate this risk through proactive talent engagement and retention strategies.
• Regulatory Complexity: Navigating India’s regulatory landscape requires expert guidance. Engaging local legal and compliance advisors ensures smooth setup and operations.
• Cultural Integration: Bridging cultural differences is essential for effective collaboration. Cross-cultural training and leadership development programs are recommended.
• Cybersecurity and Data Privacy: With increasing digitalization, robust cybersecurity frameworks and compliance with data privacy laws are critical.

Best Practices for UK MNCs Establishing GCCs in India

1. Engage Local Talent Partners Early: Collaborate with experts like Han Digital for talent mapping, leadership hiring, and market intelligence from day one.
2. Invest in Employer Branding: Build a compelling employer brand to attract and retain top talent in a competitive market.
3. Leverage Digital Tools: Use AI-driven recruitment, HR analytics, and collaboration platforms to streamline operations and enhance productivity.
4. Foster a Culture of Innovation: Empower teams to experiment, innovate, and drive business transformation.
5. Ensure Compliance and Governance: Stay updated with local regulations and implement robust governance frameworks.

Future Outlook: India’s GCC Ecosystem in 2025 and Beyond

India’s GCC ecosystem is poised for exponential growth. By 2025, experts predict:

• Over 2,000 GCCs will operate in India, employing more than 2 million professionals (NASSCOM, 2024).
• UK MNCs will account for a significant share of new GCC investments, particularly in professional services, digital transformation, and sustainability domains.
• Indian GCCs