India becomes the preferred destination for Global Capability Centres as multinational corporations relocate their operations from Eastern Europe

Google, IBM, Intel, UBS, Deutsche Bank, SAP, ArcelorMittal, PepsiCo, Wells Fargo, and Heineken are relocating their global capability centers from Eastern Europe to India. India has become the preferred destination for global corporations due to its skilled workforce, cost-effective operations, and cutting-edge technological infrastructure. With a rapidly growing digital economy and steady government incentives, India's income from global capability centers has increased at a CAGR of 9.8% and is expected to reach 2,400 companies by 2030, generating over 4.5 million jobs and a market value of over $46 billion.

India's global capability centers (GCCs) are undergoing a transformative shift, positioning the country as a global hub for innovation and strategic operations. This evolution is evident in the recent relocation of major corporations such as Google, IBM, Intel, UBS, Deutsche Bank, SAP, ArcelorMittal, PepsiCo, Wells Fargo, and Heineken from Eastern Europe to India [1]. This strategic move underscores India's growing appeal as a preferred destination for global corporations, driven by its skilled workforce, cost-effective operations, and cutting-edge technological infrastructure.

The relocation of these global corporations is part of a larger trend where India's GCC sector is rapidly expanding. A recent report by Taggd, in collaboration with the Confederation of Indian Industry (CII) and real estate giant JLL, highlights that nearly 48% of India's premier GCCs are planning significant workforce expansions for the 2025-26 fiscal year [2]. This aggressive hiring spree is a testament to the deepening trust global corporations are placing in Indian talent to drive not just operational efficiency but also mission-critical research, development, and digital transformation.

The strategic pivot from cost arbitrage to value creation is evident in the evolution of GCCs. These centers are no longer just executing tasks but are co-creating strategies and driving innovation. For instance, a leading retail GCC in Bengaluru is transitioning from managing the backend of the company's US e-commerce site to building AI-powered recommendation engines, necessitating a larger and more specialized talent pool [2].

The digital transformation engine is another key driver of this expansion. Indian GCCs are at the forefront of executing large-scale digital projects across various industries, from pharmaceutical digitization to global supply chain digital twins and blockchain integration [2]. This sustained, multi-year digital imperative is a core pillar supporting the projected hiring boom for 2025-26 and beyond.

Moreover, the pandemic and geopolitical shifts have underscored the need for business resilience and diversified operational footprints. India's stable, talent-rich environment allows companies to de-risk their global operations by concentrating critical functions and intellectual property within GCCs [2].

The human capital revolution within GCCs is equally significant. A growing preference for internal mobility is not just an HR trend but a fundamental change in the social contract between the GCC and its employees. This shift emphasizes retention of institutional knowledge, boosting employee morale, and cost-effectiveness. By creating robust internal mobility programs, GCCs are grooming their mid-level managers and senior technologists to take on global leadership roles [2].

The demand for talent in the GCC sector is highly targeted, focusing on future-focused skills critical for driving innovation. Aspiring professionals should be laser-focused on these skills to build a career in India's GCC ecosystem.

With a rapidly growing digital economy and steady government incentives, India's income from global capability centers is increasing at a CAGR of 9.8%. By 2030, this sector is expected to generate over 4.5 million jobs and a market value of over $46 billion [1].

In conclusion, India's GCC sector is undergoing a profound transformation, evolving from a peripheral support function to a core, strategic partner in global value creation. This shift is not just about numbers but about strategic intent, innovation, and human potential, placing India at the heart of the future of work.

References:
[1] https://www.linkedin.com/pulse/new-sunrise-how-indias-global-capability-centers-powering-gunturu-hcmnc
[2] https://www.linkedin.com/pulse/new-sunrise-how-indias-global-capability-centers-powering-gunturu-hcmnc