Mini GCCs gain ground in India as startups tap tech talent
From AI to SaaS, US-based tech companies are setting up mini GCCs to access high-quality talent, accelerate product development, and move closer to profitability.
Global capability centres (GCCs) in India are no longer defined by their size and scale. A strong momentum is now building for micro, mini, and nano GCCs, which are tapping into the technology talent pool in the country to meet diverse growth objectives.
These smaller GCCs typically have headcount as low as 10 professionals, going all the way up to 200 people.
While the India GCC landscape continues to be dominated by large global brands across industries, their presence has opened the door for the establishment of these smaller units.
“These (mini GCCs) get more out of India as the country has the depth of talent and also experience of building innovative products,” says Gaurav Vasu, Founder & CEO of UnearthInsight, a data intelligence firm.
Today, India has over 1,800 GCCs, employing nearly 1.9 million people. This has created an ecosystem that is attracting more global players into this segment. The long-standing presence of global technology companies such as Microsoft, IBM, Google, Oracle, SAP, and others has further strengthened the foundation for GCC growth in the country.
This momentum is also reflected in the choice of locations. The mini GCC landscape in India continues to be dominated by the top cities such as Bengaluru, Chennai, Hyderabad, Pune, and Mumbai, where most companies are heading to set up their centres.
A newer dimension driving the emergence of nano GCCs is India’s startup ecosystem and its distinctive pool of tech talent. As per UnearthInsight, there are around 800 mini GCCs in India employing around 250,000 people.
Piyush Kedia, Founder & CEO, InCommon, a specialised GCC operator, notes that a majority of these mini GCCs in India are typically the Series B-funded technology startups based in the United States. “They want access to high quality talent and scale rapidly,” he remarks.
The setting up of these mini GCCs in India offers multiple advantages. The shift is largely due to the growing demand for technology talent from these companies, especially in the US. While the availability of skilled talent is increasingly constrained in the US, India continues to offer a steady and scalable supply. At the same time, many of these companies are realising that operating a smaller centre in India delivers benefits not just from a cost perspective, but also in terms of access to high-quality talent.
Kedar Pathak, GCC Talent Specialist at Xpheno, explains that once a tech startup establishes its product strategy and starts generating revenue, India often becomes the only viable location to help them move towards profitability.
The West does not have the supply of talent that India can provide, and these professionals are also available at much lower cost.
However, the big difference between the conventional GCCs and their mini counterparts is their structure and nature of work. Many conventional GCCs in the country still focus on the supplementary work of their parent companies, although things are changing for some of the GCCs.
In the case of mini GCCs, the scenario is different. Vasu points out that mini GCCs experience lesser siloed programmes which gives them the autonomy and visibility to the organisation’s strategic goals from the perspective of new products, markets, business pivots etc. This enables them to be engaged in activity that goes beyond product support and engineering.
Kedia says the big advantage of these mini GCCs is that there is parallel work happening between India and the US, which is largely into product development.
Most mini GCCs in India largely operate in deeptech, edtech, AI, fintech, SaaS, and similar segments.
“They (mini GCCs) are not solving a business process problem but developing frontline work sitting out of India,” says Pathak.
The big question around mini GCCs is how they are able to attract the necessary talent. While many mini GCCs struggle to attract fresh talent, hiring experienced professionals is relatively easier.
Vasu says freshers prefer to get hired by established GCCs as they seek job security and the associated advantages of working in such larger set ups. However, for experienced tech professionals, the scenario is slightly different. They are drawn to mini GCCs as they get exposure to the latest technology and they are also able to get higher compensation for their expertise.
InCommon has created curated talent cohorts such as the IIT alumni, GCC professionals, and startup employees. Kedia says this helps them to pick and choose depending on the requirement.
“The trust in the quality of Indian talent has gone up significantly,” he says, and adds that it is also an advantage for these companies looking to set up mini GCCs as there are many individuals with Indian heritage, which increases their confidence level.
Pathak says, “There is also an additional kicker of flexibility in such operations and the availability of long term incentive plans like RSUs or ESOPs.”
The current trend of mini GCCs will continue in the days to come and the emergence of new kinds of tech startups as industry observers believe that the demand continues to remain strong.
Kedia says most companies adopting this model have long term plans, while they are quite careful in their initial buildout in terms of the people they hire. InCommon has helped around seven companies to set up their mini GCCs in India.
“These are like building a SWAT team in India,” remarks Pathak.
Edited by Megha Reddy