TLDR: India’s Global Capability Centers (GCCs) are rapidly transforming from traditional back-office operations into strategic powerhouses for artificial intelligence (AI) and digital innovation for multinational corporations. With over 1,800 GCCs employing nearly 2 million people, India is set to contribute 3.5% to its GDP by 2030. A significant majority, nearly 70%, are actively investing in generative AI (GenAI) and upskilling their workforce to lead cutting-edge AI projects globally. This shift positions India as a key strategic partner in AI innovation, moving beyond its role as a cost-effective delivery location.
India’s Global Capability Centers (GCCs) are undergoing a profound transformation, shedding their traditional image as cost-efficient back offices to emerge as strategic engines of artificial intelligence (AI) and digital innovation for global enterprises. This evolution marks a significant shift in India’s role within the global technology landscape, moving from a focus on execution to one of innovation leadership.
Currently, India hosts over 1,800 GCCs, employing close to 2 million people. These centers are poised to contribute a substantial 3.5% to the country’s GDP by 2030, with some projections estimating the market size to reach $100 billion by the same year. The scale of this transformation is evident in the widespread adoption of advanced technologies; according to the EY India’s GCC Pulse Survey, nearly 70% of GCCs are actively investing in generative AI (GenAI), while 78% are committed to upskilling their employees to align with this strategic shift. Other reports indicate that over 90% of leading GCCs have launched or expanded AI-focused centers of excellence in the past 18 months.
This transformation is driving the development of sophisticated AI solutions across various industries. Teams within these GCCs are now spearheading projects such as AI solutions for healthcare, machine learning models for predictive maintenance, and advanced algorithms that inform global business decisions. They are not merely implementing tools developed elsewhere but are actively creating intellectual property, filing patents, and developing AI products that compete on a global scale. For instance, Rakuten India, which manages a significant portion of its Japanese conglomerate’s global technology operations, has developed SixthSense, an AI-driven platform designed to proactively predict and resolve infrastructure, application, and user experience issues. Sunil Gopinath, CEO of Rakuten India, emphasized the broad impact, stating, “GenAI will have an impact across nearly every domain.” Similarly, Suresh Kumar, Chief Technology Officer and Chief Development Officer at Walmart Global Tech, noted that “Our India teams are building everything from Agentic AI to core infrastructure.”
India’s extensive reservoir of STEM graduates and a robust technology ecosystem provide a strong foundation for this growth. The demand for generative AI skills in these centers has seen an impressive 32% annual increase, particularly within the BFSI (Banking, Financial Services, and Insurance) and retail sectors. Global leaders are increasingly recognizing India not just as a delivery location but as a strategic AI and innovation partner, evidenced by significant investments from tech giants like Google, Microsoft, and Amazon in strengthening their AI infrastructure and capabilities in the country.
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Looking ahead, India’s GCCs are expected to drive 30-40% of all global AI projects by 2026, create over 500,000 high-value AI jobs in the next three years, and develop intellectual property worth $15-20 billion annually. However, challenges remain, including fierce competition for top AI and data talent and the need for a cultural shift from a service mindset to one centered on experimentation and product innovation. Addressing data privacy, governance, and equitable access will also be crucial. Amardeep Singh, Senior Vice President and BU Head at Encora India, articulated the ambitious future: “Success in 2030 will be when Indian GCCs drive over 40% of global enterprise innovation.” He also highlighted the necessity for a radical overhaul of the skilling ecosystem, advocating for “industry-embedded curriculum, AI-first skilling programs, and innovation sandboxes that let students build, break, and rebuild.”
