India to see entry of over 120 new mid-sized GCCs: Report

India's technology industry will see global capability centres (GCCs) rise over 120 mid-size GCCs, creating 40,000 jobs by 2026, according to a report.

Inductus Global, a professional services company, in a report titled, "Mid-Sized Global Corporations Establishing GCCs in India: Navigating Uncertainties with Confidence," said the mid-sized GCCs are outpacing the overall market with a CAGR of 6.2%, compared to the market average of 4.5%.

The report said that mid-sized GCCs employing between 200 and 1,000 people are rapidly becoming the strategic preference for global companies seeking specialised expertise and operational flexibility.

At present, India has 800-plus mid-size GCCs employing 220,000 professionals. The country's mid-market GCC segment is projected to see a 15-20% revenue increase between 2024 and 2026, reflecting the strong confidence global companies are placing in these operations.

The report found that 65% of mid-sized corporations plan to increase their GCC investments over the next two years, viewing their Indian operations as crucial to advancing innovation agendas.

Inductus Global Founder and CEO Alouk Kumar said, “Mid-sized GCCs have evolved from mere cost-saving centres to strategic innovation hubs driving critical business functions. Our findings clearly indicate that the sweet spot for many corporations now lies in these focused, nimble operations that can deliver specialised capabilities without the complexities of larger-scale centres.”

The report noted that companies report substantial cost benefits, with 30-40% reductions by leveraging Indian GCCs compared to other global locations, allowing companies to reallocate savings toward innovation and other strategic initiatives.

Mid-market GCCs already account for nearly 50% of India's total GCC ecosystem as of 2024, demonstrating their growing dominance in the market.

The Delhi-NCR region, particularly Noida and Greater Noida, is emerging as a preferred destination for these centres, creating a significant economic impact through job creation, infrastructure development, and the growth of ancillary services. Expansion of these centres into Tier II and III cities is leading to increased local employment opportunities and broader regional economic development, the report said.

The survey found high adoption rates of transformative technologies among mid-sized GCCs. Artificial intelligence (AI) and machine learning (ML) are leveraged for automation and predictive analytics, while cloud computing has reached over 70% adoption, enabling scalability and remote operations. Enhanced cybersecurity measures are protecting sensitive operations, and there's a growing IoT implementation in specific sectors.