Karnataka is home to 50% of mid-market GCCs in India: Report

The state of Karnataka accounts for nearly half of the mid-market global capability centres (GCCs) in the country, according to a study.

India has the presence of around 480 mid-market GCCs, with Karnataka accounting for 230 plus such units, according to a study done by Zinnov in association with Karnataka Digital Economy Mission (KDEM).

The study, titled 'Mid-market Global Capability Centres (GCCs) in Karnataka - Leading India’s Next Wave of Innovation', defines mid-market GCCs as those entities which are established by enterprises with annual global revenues ranging from $100 million to $1 billion.

The mid-market segment accounts for 26% of the total GCCs present in the country, employing around 2.10 lakh people.

According to the study, mid-market GCCs in Karnataka show a higher level of maturity as they are operating at high growth velocity driven by focused mandates, lean governance, and tighter HQ alignment. More than 48% of these units are driving core engineering R&D capabilities. In addition, 39% of mid-market GCCs have deeptech talent in artificial intelligence and machine learning.

The study further noted that the forward-looking policies of Karnataka, spanning talent, digital infrastructure, and ease of doing business, are enabling faster setup, deeper integration, and scalable growth for mid-market GCCs.

Karnataka IT Minister Priyank Kharge said, “Karnataka, in particular, is witnessing a rapid acceleration in the maturity of these Mid-market GCCs, which are growing 1.4 times faster than their larger counterparts. This is fuelled by deep engineering R&D capabilities and a dense concentration of niche digital skills, especially in areas like artificial intelligence and machine learning. These centres are no longer just delivery hubs—they are becoming strategic innovation partners for global enterprises.”

The study said mid-market GCCs in the state are accelerating business outcomes, operating 1.4X faster than non-mid-market peers by driving more with fewer, highly specialised teams that reduce cost while increasing impact.

These mid-market GCCs are also now owning end-to-end product charters, including architecture decisions, feature releases, and customer-centric iterations, moving well beyond delivery into core engineering strategy. Most of these Mid-market GCCs are also leading enterprise-wide innovation mandates, building AI and Cloud CoEs, driving platform modernisation, and developing next-gen capabilities like advanced data modelling and DevOps automation.