Across India’s tech corridors, over 1700 Global Capacity Centres (GCCs) are rewriting how enterprises innovate, scale, and deliver value. As enterprises push for agility, innovation, and control, traditional outsourcing models are losing relevance. Projections suggest that the number of GCCs in India will surpass 2200 by 2030 , representing a $402.14 billion global market opportunity by 2032
GCCs have outgrown their “support office” identity. Modern global capacity centres offer a new blueprint that enables organisations to combine global talent, technology, and innovation under full ownership. They have evolved from cost-saving entities to strategic innovation hubs, driving enterprise transformation across industries.
This guide unpacks what a GCC is, how it differs from traditional outsourcing, the strategic advantages it offers, and how leading enterprises are partnering with Infosys BPM to build and scale high-impact global capacity centres.
what is a global capability centre (GCC)?
Global Capability Centres (GCCs) are wholly owned subsidiaries that multinational enterprises establish in talent-rich regions. Enterprises also refer to them as captive centres, shared service centres, or global in-house centres. GCCs offer parent organisations direct access to specialised capabilities necessary to build proprietary intellectual property and help drive innovation while maintaining complete operational control and strategic alignment.
core characteristics of a GCC
A global capability centre typically embodies four core traits:
- 100% ownership and governance by the parent company.
- Strategic location in regions offering skilled, cost-effective talent.
- Integration with the enterprise’s culture, goals, and governance.
- Focus on capability building, innovation, and transformation rather than just cost savings.
how GCCs evolved from cost centres to innovation hubs
The first-generation GCCs served as back-office support for IT and business processes. However, over the years, they have evolved from operational hubs into innovation engines that help redefine strategy and growth for global enterprises.
An S&S Insider report values the capacity centre market at $142.92 billion in 2024 and projects that it will reach $402.14 billion by 2032, growing at a CAGR of 13.51%. Today, more than 3,000 GCCs operate worldwide , with Indian tech corridors hosting nearly 53% of them . These GCCs now drive product development, data analytics, and AI-driven transformation, helping businesses build long-term growth and resilience.
For deeper insights into the journey and evolution of GCCs, read our article: Evolution of Global Capability Centres: From Cost Cutters to Strategic Powerhouses
how GCCs differ from outsourcing: a strategic comparison
As global enterprises pursue efficiency and innovation, many reevaluate how they source talent and manage operations. While outsourcing remains a practical choice for many, GCCs have emerged as a more strategic alternative.
key differences between GCC and outsourcing models
While both Global Capability Centers (GCCs) and outsourcing aim to optimize global operations, they differ fundamentally in ownership, control, and strategic value creation. GCCs offer full ownership and direct control over operations, data, and intellectual property, making them a more strategic alternative for core, high-value functions. Understanding these distinctions helps leaders decide which model best fits their organisational goals.
| Aspect | Global Capability Centre (GCC) | Outsourcing |
| Ownership | Full ownership and operational control | Management by a third-party vendor |
| Strategic Control | High – Direct control over operations, data, and processes | Limited – Service-Level Agreements (SLAs) define and control operations |
| IP and Data Security | Full IP retention and stronger data control | Risk depends on vendor compliance |
| Focus Area | Innovation, transformation, and capability building | Cost reduction and efficiency |
| Talent Model | Build internal capability and institutional knowledge | Reliance on external vendor talent |
Enterprises today increasingly prefer GCCs for strategic and high-value functions because these centres enable end-to-end visibility, cross-functional collaboration, and innovation ownership. With tighter data governance and a direct connection to business objectives, GCCs enhance enterprise agility and decision-making.
choosing between a GCC and outsourcing
Selecting between a GCC and outsourcing depends on organisational priorities, maturity, and transformation goals. The choice often hinges on how much control, innovation, and long-term value the enterprise aims to retain.
A GCC is ideal for:
- Core operations like R&D, AI/ML capability building, or product development.
- Long-term innovation initiatives.
- Functions requiring IP protection or cultural alignment.
Outsourcing works better for:
- Non-core, transactional tasks such as payroll or helpdesk operations.
- Short-term projects needing rapid deployment.
- Situations where cost and speed outweigh strategic control.
Many organisations adopt a hybrid model, using GCCs for strategic capabilities and outsourcing for scale and flexibility.
key benefits of establishing a global capability centre
A well-designed global capability centre offers tangible advantages that go beyond cost savings. It strengthens the enterprise’s foundation for agility, innovation, and sustainable transformation by offering:
access to specialised global talent
Global capability centres give enterprises direct access to skilled professionals across domains such as AI/ML, data analytics, and cloud computing. According to a report by the Ministry of Education , India alone produces over 2.5 million STEM graduates every year, creating an exceptional talent pool for enterprises building advanced digital capabilities.
By leveraging this ecosystem, GCCs enable organisations to recruit specialists who blend local market insight with global standards. This helps them bridge skill gaps, strengthen institutional knowledge, and accelerate digital transformation with sustained innovation momentum.
For detailed insights on how organisations can build future-ready skills with GCCs, read our article: Talent Transformation in GCCs: Building Future-Ready Skills
cost optimisation beyond labour arbitrage
According to a recent industry report , operating a GCC in India can yield 40-70% cost savings compared to equivalent functions in Western markets. Factors such as lower real estate costs, competitive salaries, and favourable exchange rates drive these efficiencies. For example, a mid-level engineer in India may earn between $15,000 and $30,000 annually, compared with $70,000 to $130,000 in the US or UK. And a 300–400 FTE GCC typically operates at $3-5 million per year, delivering substantial ongoing savings.
Beyond savings, a GCC becomes a strategic value creator, fostering innovation, improving process quality, and developing proprietary capabilities. By integrating global best practices with local efficiencies, organisations achieve sustainable performance improvements that go far beyond labour arbitrage, creating measurable business impact across functions and geographies.
driving innovation and digital transformation
Modern GCCs serve as centres of excellence for emerging technologies, enabling enterprises to test and scale digital initiatives rapidly. Nearly 55% of enterprise tech products now originate in GCCs , reflecting their growing strategic influence. They act as innovation labs, building AI tools, automation workflows, and data-driven solutions that accelerate transformation.
With direct access to cross-functional teams, enterprises can experiment, prototype, and implement new solutions faster than traditional outsourcing models allow. GCCs create an environment where ideas move seamlessly from concept to execution, enabling enterprises to stay ahead of competitors and continuously evolve in line with digital-first business goals.
For a deeper look at the role of AI and automation in GCCs, read our article: How AI is Shaping Next-Gen GCCs
ensuring complete operational control and IP security
Unlike outsourcing, GCCs give enterprises complete oversight of quality, governance, and information security. The parent company retains full ownership of any intellectual property – spanning algorithms, designs, and data, strengthening compliance and brand integrity.
Additionally, since the centre operates under the parent company’s policies and infrastructure, businesses ensure strict adherence to global regulations. This reduces risks of third-party data handling and makes it easier to streamline cybersecurity measures for enhanced stakeholder trust.
For insights into risk management and compliance, read our article: GCC Cybersecurity Strategy
core functions and roles housed in global capability centres
A GCC can support multiple business lines depending on enterprise maturity and strategic priorities. These centres house both technology and business functions, delivering end-to-end capabilities.
technology and R&D excellence
GCCs often manage technology functions like software development, AI and data analytics, cybersecurity, and cloud architecture. Many enterprises also leverage GCCs as product engineering hubs, contributing to R&D efforts and intellectual property creation.
business shared services
GCCs streamline essential business operations such as finance, HR, procurement, and customer experience management. By consolidating these functions, organisations achieve process consistency and operational excellence.
industry-specific expertise
Sector-focused GCCs also bring domain expertise to the table. For example,
- BFSI centres handle risk analytics, capital management, and compliance.
- Healthcare GCCs manage clinical data, regulatory processes, and patient analytics.
- Retail GCCs optimise supply chains and omnichannel experiences.
Each model reflects how enterprises align global talent with strategic business goals.
For a detailed look at the functional evolution of GCCs, read our article: GCC Digital Transformation and Innovation
GCC setup considerations: location, costs, and timelines
Establishing a global capability centre requires careful planning around location, investment, and execution speed. Selecting the right model directly impacts scalability and long-term success.
choosing the right location
Choosing the right location is one of the most important strategic decisions in establishing a GCC. It influences access to talent, infrastructure maturity, operational costs, and long-term scalability.
India continues to lead globally as the preferred destination for GCCs, hosting about 53% of the world’s GCCs. Tier-1 cities such as Bengaluru, Hyderabad, and Pune lead the charge with their robust digital ecosystems, infrastructure, and availability of highly skilled professionals. Meanwhile, Tier-2 cities such as Coimbatore, Jaipur, and Kochi are gaining traction as cost-efficient alternatives with improving infrastructure, lower attrition rates, and strong government support for technology and innovation.
understanding cost and timeline factors
Although cost savings in GCC setups typically range from 40% to 70% , the actual costs depend largely on location and operating model. While Tier-1 hubs involve higher infrastructure and talent costs, Tier-2 cities offer greater cost efficiency without compromising capability.
| Cost Category | Tier-1 Cities | Tier-2 Cities |
| Real Estate and Facilities | $8-12 per sq. ft/month | $4-7 per sq. ft/month |
| Talent Costs (Mid-Level Engineer) | $25-30K/year | $18-22K/year |
| Technology Infrastructure | $50-100K upfront | $45-90K upfront |
| Compliance and Legal Requirements | $100-150K/year | $80-120K/year |
The setup timelines depend on whether the enterprise builds the GCC independently or collaborates with a local partner. Building a GCC independently can take up to eight months, but partnering with an experienced provider reduces setup time to just four to six weeks. A partner-led model streamlines administration, ensures compliance, and accelerates scalability – helping enterprises realise value much faster.
For a detailed guide on selecting the optimal location, read our article: Global Capability Centre Location Strategy
how Infosys BPM enables GCC success: end-to-end services
At Infosys BPM, we bring decades of experience and expertise in business process management and digital transformation, helping enterprises design, build, and scale future-ready GCCs. Its comprehensive frameworks support every stage of the GCC lifecycle.
Infosys BPM’s four strategic pillars for GCC excellence
- GCC Strategy and Design: Strategic consulting, location assessment, and ROI modelling to define a sustainable GCC blueprint.
- GCC Solutions and Setup: Legal entity creation, talent acquisition, and technology deployment for seamless establishment.
- GCC Operations and Management: Governance frameworks, compliance oversight, and performance management, ensuring operational excellence.
- GCC Transformation and Scaling: Leveraging automation, analytics, and AI to expand GCC capabilities across geographies.
Infosys BPM’s No-Capex model and accelerated setup approach reduce launch time by up to 60%, ensuring faster realisation of value.
partner benefits and success metrics
Enterprises partnering with Infosys BPM experience:
- Rapid deployment within 4–6 weeks.
- Elimination of $6M+ in upfront costs.
- Reduced risk through proven governance models.
- Operational excellence built on 100+ successful GCC implementations.
Whether evaluating feasibility or scaling globally, Infosys BPM provides the strategic expertise and infrastructure to accelerate your GCC journey.
To understand how to measure the value of your GCC, read our article: Measuring GCC Success Factors and KPIs
conclusion
Global Capability Centres have become the cornerstone of enterprise transformation – bridging global talent, digital innovation, and operational excellence. As organisations move beyond outsourcing, GCCs offer a model that combines control, scalability, and long-term value creation. With their ability to integrate emerging technologies, build future-ready talent, and safeguard intellectual property, GCCs enable businesses to stay resilient and competitive in a rapidly evolving market, turning strategic intent into measurable business impact.
FAQs: quick answers on global capability centres
how is a GCC different from traditional outsourcing?
The fundamental difference between the two models is in ownership and control. The parent company retains 100% ownership and operational control over processes, IP, and culture, whereas outsourcing involves reliance on third-party vendors.
what are the core functions performed by a global capability centre?
Modern GCCs have evolved far beyond traditional IT support. They manage strategic and knowledge-intensive functions such as software development, AI/ML research, data analytics, finance and accounting, HR, and R&D.
what is the typical timeline for setting up a GCC?
An independent GCC setup usually takes 6-8 months. However, partnering with an experienced provider like Infosys BPM can shorten this to 4-6 weeks, enabling faster operational readiness and early value capture.
