Introduction
India’s Global Capability Centre (GCC) ecosystem is entering a new phase of growth. In the 2026 state budget, Siddaramaiah announced an ambitious plan for Karnataka to establish 500 new GCCs by 2029, reinforcing the state’s position as one of the world’s most important hubs for technology and innovation operations.
At the same time, the GCC model itself is evolving. Alongside large, established centres, Nano GCCs; smaller, agile teams focused on specialized capabilities are emerging as a new way for global companies to build innovation hubs in India.
Together, policy momentum and operating model innovation are shaping the next phase of GCC growth, where capability centres are increasingly increasingly designed to support scale, innovation, agility, and strategic impact.
Karnataka’s Budget Push for GCC Expansion
Karnataka has long been a preferred destination for global companies establishing capability centres. With over 550 GCCs already operating in the state, the government is now aiming to significantly scale this ecosystem.
The 2026 state budget outlines a clear strategy: attract global enterprises, expand the technology workforce, and strengthen the state’s innovation economy. The target of 500 additional GCCs by 2029 is expected to generate approximately 3.5 lakh jobs and nearly $50 billion in economic output, according to government projections..
While Bengaluru continues to anchor India’s GCC ecosystem, the government is also focusing on distributed growth across emerging cities.
A new IT park will be developed in Mangaluru through the Karnataka State Electronics Development Corporation, aimed at attracting global companies and enabling the development of new capability centres.
Meanwhile, Mysuru is already emerging as a strong technology hub, hosting nearly 100 IT companies and more than 30,000 professionals. The growth of tier-2 technology ecosystems is expected to play an important role in supporting scalable and resilient GCC expansion.
This distributed growth model reflects Karnataka’s strategy to build a diversified and future-ready technology ecosystem.
The Rise of Nano GCCs
Alongside policy-driven expansion, the GCC operating model itself is undergoing transformation.
Historically, GCCs were large-scale operations with thousands of employees supporting shared services such as finance, HR, and IT operations. Increasingly, however, organizations are establishing smaller, highly specialized capability centres focused on innovation and advanced technology functions.
This shift has led to the emergence of Nano GCCs.
Nano GCCs typically begin with teams of 20 to 100 professionals and focus on high-value capabilities such as:
- Artificial intelligence and machine learning
- Product engineering
- Data science and analytics
- Cybersecurity and digital platforms
- Research and innovation initiatives
Rather than large operational hubs, these centres function as focused innovation engines within global enterprises.
Several factors are driving the adoption of this model:
- Speed and agility
Smaller teams allow organizations to establish capability centres quickly and begin delivering value without large infrastructure investments. - Access to specialized talent
India’s deep technology talent pool enables companies to build concentrated teams with expertise in advanced digital capabilities. - Lower operational risk
Nano GCCs allow organizations to test operating models and capabilities before scaling operations. - Expansion of mid-market enterprises
Not only large multinational corporations but also mid-sized global companies are increasingly establishing capability centres in India. Nano GCCs provide a practical entry point for these organizations.
As a result, the next wave of GCC expansion is likely to include a mix of large-scale centres and smaller, innovation-driven teams.
Why Karnataka Continues to Lead the GCC Ecosystem
Several structural advantages continue to position Karnataka as a leading global destination for capability centres.
- A strong technology talent base
The state produces a steady pipeline of engineers, data scientists, and digital professionals, enabling organizations to build advanced technology capabilities within their GCCs. - A mature innovation ecosystem
Bengaluru hosts one of the world’s most vibrant technology ecosystems, bringing together global enterprises, startups, research institutions, and venture capital networks. This environment supports collaboration, experimentation, and rapid innovation. - Policy and infrastructure support
Government initiatives, technology parks, and industry partnerships create a supportive environment for companies establishing operations in the state. - Emerging technology hubs
Cities such as Mysuru and Mangaluru are increasingly attracting technology investment due to competitive operating costs, strong academic institutions, and expanding infrastructure.
Together, these factors continue to reinforce Karnataka’s role as a strategic hub for global capability development.
Ecosystem Enablers Supporting GCC Growth
Alongside government initiatives, several specialized firms support companies establishing and scaling GCC operations.
- Astravise Services
Partners with enterprises to design, build, and execute Global Capability Centre strategies. ASPL supports multinational companies in setting up GCCs by providing end to end setup from Market Feasibility and infrastructure access to talent acquisition support and operational enablement services leading to scale up. - ANSR
Works with multinational companies to design, establish, and operate GCCs, covering infrastructure, talent acquisition, and operational management. - Zinnov
A research and advisory firm that supports enterprises in developing GCC strategies, global engineering teams, and innovation-led operating models. - Wisemonk
Enables companies to hire and manage talent in India without establishing a local legal entity; an approach particularly useful for launching Nano GCCs. - Covenant Consultants
Provides recruitment expertise to help organizations build leadership teams and hire specialized talent for GCC operations.
These ecosystem players support organizations across the lifecycle of GCC development; from market entry and capability design to operational scale.
How Astravise Services Supports GCC Transformation
As the GCC landscape evolves, organizations increasingly require strategic clarity on how capability centres should be designed and governed.
Astravise Services works with enterprises to develop GCC models that function as integrated capability hubs within global organizations and operate as integrated capability hubs within global organizations.
Key areas of support include:
- GCC strategy and operating model design
Defining location strategies, governance frameworks, and capability roadmaps aligned with global business priorities. - Shared services to GCC transformation
Helping organizations evolve traditional shared services into innovation-driven capability centres. - Capability and leadership development
Designing leadership structures and organizational frameworks that support long-term GCC maturity. - Digital capability enablement
Integrating analytics, automation, and digital platforms into GCC operations to support innovation and operational effectiveness.
Through these initiatives, Astravise Services helps organizations build future-ready capability centres that contribute to innovation, efficiency, and enterprise value creation.
Conclusion
Karnataka’s ambition to establish 500 new GCCs by 2029 signals a significant expansion of India’s role in the global capability centre ecosystem.
At the same time, the emergence of Nano GCCs reflects a broader shift in how organizations approach capability building, favoring focused teams designed to drive innovation and specialized capability development and specialized expertise.
Together, policy momentum, talent availability, and evolving operating models are reshaping the next phase of GCC growth.
For global enterprises, the opportunity now lies not only in establishing capability centres, but in designing them as strategic engines for innovation, technology development, and long-term enterprise value.