Introduction: India’s Mid-Market GCC Boom

India is experiencing a significant surge in the establishment of mid-market Global Capability Centres (GCCs), marking a pivotal shift in the global outsourcing and professional services landscape. According to a recent Times of India article, the country is rapidly becoming the preferred destination for mid-sized international firms seeking to set up their capability centers. This trend is reshaping the way professional services companies approach global operations, talent acquisition, and digital transformation.

What Are Global Capability Centres (GCCs)?

Global Capability Centres, formerly known as captive centers, are offshore units established by multinational corporations to deliver a wide range of services—IT, finance, HR, analytics, and more—to their global operations. Traditionally dominated by large enterprises, the GCC landscape is now witnessing robust participation from mid-market companies, especially in India.

Key Drivers Behind the Growth of Mid-Market GCCs in India

• Talent Availability: India boasts a vast pool of skilled professionals in technology, finance, analytics, and business operations.
• Cost Efficiency: The cost arbitrage for establishing and running GCCs in India remains compelling, even as talent costs rise moderately.
• Digital Transformation: Mid-market firms are leveraging GCCs to accelerate digital initiatives, access emerging technologies, and drive innovation.
• Favorable Regulatory Environment: India’s government continues to streamline policies and incentives for foreign investment in the services sector.
• Strategic Location: India’s time zone, English proficiency, and cultural alignment with Western markets make it an ideal GCC hub.

Recent Research: GCC Trends and Opportunities (2023-2024)

According to NASSCOM’s 2023 GCC India Landscape report, India is home to over 1,580 GCCs, employing more than 1.66 million professionals. Notably, the share of mid-market GCCs—those with 100 to 1,000 employees—has grown by over 25% in the last two years. The report highlights that sectors such as BFSI, healthcare, retail, and professional services are leading this expansion.

Further, a 2024 EY study found that 70% of new GCC entrants in India are mid-sized firms, drawn by the agility, scalability, and innovation potential that Indian talent offers. The same study underscores a shift from traditional IT outsourcing to high-value functions like data science, cybersecurity, and digital product development.

Why Professional Services Companies Are Investing in India’s GCC Ecosystem

Professional services companies—spanning consulting, audit, legal, and business process management—are increasingly establishing or expanding their GCCs in India. The key motivations include:

• Access to Specialized Talent: India’s mature talent ecosystem supports niche skills in risk management, compliance, analytics, and automation.
• Operational Resilience: GCCs offer business continuity, risk mitigation, and the ability to serve global clients seamlessly.
• Innovation Hubs: Many GCCs are evolving into centers of excellence, driving R&D, digital transformation, and process optimization.
• Client Proximity: With clients demanding faster, more personalized services, Indian GCCs enable real-time collaboration and delivery.

Challenges and Solutions in Setting Up Mid-Market GCCs

While the opportunities are immense, mid-market firms face unique challenges in establishing GCCs in India:

• Talent Competition: Attracting and retaining top talent in a competitive market.
• Leadership Hiring: Securing senior leaders with global experience and local market understanding.
• Compliance and Regulatory Complexity: Navigating India’s evolving legal and tax landscape.
• Scaling Operations: Balancing rapid growth with operational excellence and cultural integration.

To overcome these hurdles, companies are increasingly partnering with specialized talent advisory firms, leveraging local expertise, and adopting agile operating models.

Han Digital: Empowering GCC Success with Talent Intelligence

One of the standout players in the Indian talent advisory and GCC consulting space is Han Digital. With over a decade of experience, Han Digital has carved a niche by providing data-driven talent solutions for global and mid-market organizations establishing or scaling their GCCs in India.

• Deep Talent Market Insights: Han Digital’s proprietary talent intelligence platforms offer real-time insights into skill availability, compensation trends, and talent hotspots across India’s metro and Tier-2 cities.
• Senior Leadership Connections: The firm’s extensive network with senior leaders and CXOs across industries enables clients to identify and onboard high-impact leadership talent for their GCCs.
• Custom Talent Strategies: Han Digital crafts bespoke talent acquisition, employer branding, and workforce planning strategies tailored to the unique needs of mid-market GCCs.
• End-to-End GCC Advisory: From location analysis and regulatory guidance to talent ramp-up and organizational design, Han Digital supports clients at every stage of the GCC lifecycle.

Han Digital’s unique approach has helped numerous professional services companies achieve faster time-to-value, reduced hiring risks, and sustainable GCC growth in India’s dynamic market.

Case Study: A Mid-Market Professional Services GCC Success Story

Consider a leading European consulting firm that recently established its first India GCC in Hyderabad. Facing intense competition for analytics and digital transformation talent, the firm partnered with Han Digital to:

• Map the local talent landscape and identify high-potential hiring pools.
• Design an employer value proposition (EVP) tailored to Indian professionals.
• Hire a senior leadership team with experience in scaling global delivery centers.
• Implement agile recruitment processes to ramp up 200+ roles in under six months.

The result? The GCC achieved operational readiness ahead of schedule, attracted top-tier talent, and is now driving innovation for the firm’s global clients—all while maintaining cost efficiency and compliance.

2025 Outlook: What’s Next for India’s Mid-Market GCCs?

Looking ahead to 2025, several trends are poised to shape the trajectory of mid-market GCCs in India:

• Expansion Beyond Metros: Tier-2 cities like Pune, Coimbatore, and Ahmedabad are emerging as attractive GCC destinations due to lower costs and growing talent pools.
• Focus on Digital Skills: Demand for AI, machine learning, cybersecurity, and cloud skills will intensify, driving upskilling and reskilling initiatives.
• Hybrid Work Models: Flexible work arrangements will become the norm, enabling access to a wider talent base and improving employee retention.
• ESG and Diversity: GCCs will prioritize environmental, social, and governance (ESG) goals, as well as diversity and inclusion in talent strategies.
• Increased M&A Activity: As the GCC ecosystem matures, expect more mergers, acquisitions, and partnerships to accelerate capability building.

Professional services companies that proactively invest in talent intelligence, leadership hiring, and digital transformation will be best positioned to capitalize on these trends.

Best Practices for Professional Services Companies Establishing GCCs in India

1. Leverage Local Expertise: Partner with talent advisory firms like Han Digital to navigate the Indian market’s nuances.
2. Prioritize Leadership Hiring: Invest in hiring senior leaders with a proven track record in global delivery and local market understanding.
3. Build a Strong Employer Brand: Articulate a compelling EVP to attract and retain top talent in a competitive landscape.
4. Adopt Agile Operating Models: Foster a culture of innovation, collaboration, and continuous improvement within the GCC.
5. Ensure Compliance and Governance: Stay abreast of regulatory changes and implement robust compliance frameworks.

Conclusion: India’s Mid-Market GCCs—A Strategic Imperative for 2025

The rapid growth of mid-market GCCs in India represents a transformative opportunity for professional services companies worldwide. By leveraging India’s deep talent pool, cost advantages, and innovation ecosystem, firms can drive operational excellence, accelerate digital transformation, and deliver greater value to clients.

With expert partners like Han Digital providing talent intelligence and senior leadership connections, the path to GCC success in India is clearer than ever. As we move towards 2025, organizations that embrace these trends and best practices will not only thrive in India’s dynamic market but also set new benchmarks for global capability and resilience.

References

• India sees growth in mid-market GCCs – Times of India
• NASSCOM GCC India Trends 2023
• EY: How India is Becoming the GCC Destination of Choice (2024)
• Han Digital – Talent Intelligence for GCCs