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India’s New GCC Policy: Unlocking Growth with Fresh Incentives

Posted on March 7, 2025 by Venkatesh Bhat

India has established itself as a leader in the Global Capability Centers (GCCs) space, generating $64.6 billion in revenue in FY 2024. The nation’s new GCC policy aims to strengthen the position by promoting innovation, cost efficiency, and regional expansion. Notably, the policy extends beyond Tier-1 cities, fostering GCC growth in Tier-2 and Tier-3 cities, making India an attractive destination for international investors.

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transition_duration=”300″ transition_easing=”ease” scroll_motion_devices=”small-visibility,medium-visibility,large-visibility” animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ last=”true” border_position=”all” first=”true” min_height=”” link=””][fusion_title title_type=”text” marquee_direction=”left” marquee_speed=”15000″ rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ title_link=”off” link_target=”_self” content_align=”left” size=”2″ text_shadow=”no” text_shadow_blur=”0″ text_stroke=”no” text_stroke_size=”1″ text_overflow=”none” gradient_font=”no” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ style_type=”none” animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” fusion_font_variant_title_font=”400″ fusion_font_family_title_font=”Poppins” font_size=”30″]The New GCC Policy: A Game Changer [/fusion_title][fusion_text animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” fusion_font_variant_text_font=”400″ fusion_font_family_text_font=”Open Sans” margin_bottom=”0px”]

The Ministry of Electronics and Information Technology (MeitY) is formulating a policy to attract more GCCs, particularly in smaller cities. This move is set to reshape India’s global economic standing by fostering innovation, economic expansion, and cost efficiency. The focus on Tier-2 and Tier-3 cities paves the way for a more decentralized, robust business ecosystem.

[/fusion_text][fusion_title title_type=”text” marquee_direction=”left” marquee_speed=”15000″ rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ title_link=”off” link_target=”_self” content_align=”left” size=”3″ text_shadow=”no” text_shadow_blur=”0″ text_stroke=”no” text_stroke_size=”1″ text_overflow=”none” gradient_font=”no” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ style_type=”none” animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” fusion_font_variant_title_font=”400″ fusion_font_family_title_font=”Poppins” font_size=”24″]

Fostering Innovation

The new GCC policy prioritizes cutting-edge technology, encouraging advancements in AI, ML, IoT, and blockchain. It promotes R&D initiatives and collaborations with universities and research institutions, expanding innovation hubs beyond Bengaluru and Hyderabad. Emerging cities like Ahmedabad, Mysuru, and Coimbatore are gaining recognition as new technology centers.

For instance, Walmart’s tech hub in Gurgaon exemplifies the benefits of GCC expansion beyond Tier-1 cities. By leveraging cost advantages, a skilled workforce, and government incentives, Walmart has enhanced operational efficiency and driven innovation in retail technology.

Similarly, Ericsson’s 5G centre in Chennai highlights India’s growing global technology capabilities. The city’s early adoption of 5G fosters telecom innovations, reinforcing India’s position as a digital leader.

Enhancing Cost Efficiency

With escalating costs in Tier-1 cities, companies are turning to Tier-2 and Tier-3 cities like Vadodara, Nashik, Jaipur, Indore, and Visakhapatnam, which offer up to 30% savings in real estate, utilities, and labor costs while maintaining international business standards. This cost advantage enables companies to offer competitive salaries while reducing overall expenditure. Over 140 GCCs have already established operations in emerging cities such as Mysuru, Vadodara, and Coimbatore.

[/fusion_text][fusion_imageframe custom_aspect_ratio=”100″ lightbox=”no” linktarget=”_self” align_medium=”none” align_small=”none” align=”none” hover_type=”none” magnify_duration=”120″ scroll_height=”100″ scroll_speed=”1″ caption_style=”off” caption_align_medium=”none” caption_align_small=”none” caption_align=”none” caption_title_tag=”2″ animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” filter_hue=”0″ filter_saturation=”100″ filter_brightness=”100″ filter_contrast=”100″ filter_invert=”0″ filter_sepia=”0″ filter_opacity=”100″ filter_blur=”0″ filter_hue_hover=”0″ filter_saturation_hover=”100″ filter_brightness_hover=”100″ filter_contrast_hover=”100″ filter_invert_hover=”0″ filter_sepia_hover=”0″ filter_opacity_hover=”100″ filter_blur_hover=”0″ alt=”Strategic priority” image_id=”9165|full”]http://localhost/astraviseservices/wp-content/uploads/2025/03/balanced-growth.jpg[/fusion_imageframe][fusion_title title_type=”text” marquee_direction=”left” marquee_speed=”15000″ rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ title_link=”off” link_target=”_self” content_align=”left” size=”3″ text_shadow=”no” text_shadow_blur=”0″ text_stroke=”no” text_stroke_size=”1″ text_overflow=”none” gradient_font=”no” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ style_type=”none” animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” fusion_font_variant_title_font=”400″ fusion_font_family_title_font=”Poppins” font_size=”24″]

Encouraging Balanced Growth

The policy promotes economic diversification by expanding GCC investments into Tier-2 and Tier-3 cities. Cities like Bhubaneswar, Tirunelveli, Raipur, and Jamshedpur are developing into potential GCC hubs with robust infrastructure and employment opportunities. According to a Economic Times report, the share of GCCs in smaller cities has risen from 5% in FY 2019 to 7% in FY 2024, signalling a clear shift toward decentralization.

Strategic Synergy with Government Initiatives

Government initiatives like Skill India and Digital India are boosting the availability of skilled professionals in smaller cities. This ensures that businesses can acquire necessary talent while supporting local workforce development.

Key Business Benefits:

Access to untapped talent: Tier-2 and Tier-3 cities are home to skilled graduates from universities in Mysuru, Jaipur, and Bhubaneswar, specializing in IT, analytics, cloud computing, and software development.
Lower attrition rates: Unlike Tier-1 cities where professionals frequently switch jobs, these regions offer a more stable workforce.
Reduced competition: Companies setting up in less saturated markets enjoy stronger market presence and better employee retention.

State-Specific Incentives

India’s state governments are actively attracting GCCs with financial incentives, infrastructure support, and skill development programs:

Karnataka: Tax waivers, infrastructure subsidies, and fast-track approvals under the GCC Policy 2024-2029, aiming to attract 500 new GCCs and generate $50 billion in economic output.
Maharashtra: Land acquisition ease, power subsidies, and financial incentives for cities like Pune, Nagpur, and Nashik.
Telangana: Tax exemptions and workforce development programs in Hyderabad.
Tamil Nadu: Capital grants for industrial corridors in Chennai, Coimbatore, and Madurai.

[/fusion_text][fusion_title title_type=”text” marquee_direction=”left” marquee_speed=”15000″ rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ title_link=”off” link_target=”_self” content_align=”left” size=”4″ text_shadow=”no” text_shadow_blur=”0″ text_stroke=”no” text_stroke_size=”1″ text_overflow=”none” gradient_font=”no” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ style_type=”none” animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” fusion_font_variant_title_font=”400″ fusion_font_family_title_font=”Poppins” font_size=”24″]

Strengthening Digital Infrastructure

[/fusion_title][fusion_text animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” fusion_font_variant_text_font=”400″ fusion_font_family_text_font=”Open Sans” margin_bottom=”0px”]India’s digital transformation initiatives, including 5G rollout and smart city projects, are improving technological readiness in smaller cities. Locations like Lucknow, Jamshedpur, and Raipur are emerging as digital service hubs.[/fusion_text][fusion_title title_type=”text” marquee_direction=”left” marquee_speed=”15000″ rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ title_link=”off” link_target=”_self” content_align=”left” size=”4″ text_shadow=”no” text_shadow_blur=”0″ text_stroke=”no” text_stroke_size=”1″ text_overflow=”none” gradient_font=”no” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ style_type=”none” animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” fusion_font_variant_title_font=”400″ fusion_font_family_title_font=”Poppins” font_size=”24″]

Outlook for the Future

India’s GCC sector is projected to reach $100 billion by 2030, with Tier-2 and Tier-3 cities playing a key role in this growth. Leading firms like Cognizant and Capgemini are actively expanding their workforce in these regions to support global operations.

By 2026, GCCs are expected to employ 2.2 million professionals, further integrating sectors like healthcare, fintech, and R&D. State-level upskilling initiatives will drive enhanced business conditions, supporting India’s goal of becoming a $5 trillion economy.

How Astravise Services Can Help

At Astravise Services, we help businesses establish and optimize GCC operations across India. Our expertise includes:

Navigating labor laws and compliance.
Competitive compensation strategy design.
Optimizing operational efficiency.
Recruiting top talent.

Partner with Astravise Services to build a future-ready GCC. Contact us now to explore how we can help you successfully expand into India’s growing GCC landscape.

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How AI is Transforming Global Capability Centers (GCCs)

Posted on February 19, 2025 by Venkatesh Bhat

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Generative AI in particular is being increasingly adopted by companies around the world, not just in their corporate headquarters but in their GCCs as well. This article dives into how this technology can reshape your GCC, turning it into an innovation engine and a strategic asset for your organization.[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container type=”flex” hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” align_content=”stretch” flex_align_items=”flex-start” flex_justify_content=”flex-start” flex_wrap=”wrap” hundred_percent_height_center_content=”yes” equal_height_columns=”no” container_tag=”div” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” status=”published” border_style=”solid” box_shadow=”no” box_shadow_blur=”0″ box_shadow_spread=”0″ gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ 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transform_translate_y_hover=”0″ transform_rotate_hover=”0″ transform_skew_x_hover=”0″ transform_skew_y_hover=”0″ transition_duration=”300″ transition_easing=”ease” scroll_motion_devices=”small-visibility,medium-visibility,large-visibility” animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ last=”true” border_position=”all” first=”true” min_height=”” link=””][fusion_title title_type=”text” marquee_direction=”left” marquee_speed=”15000″ rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ title_link=”off” link_target=”_self” content_align=”left” size=”2″ text_shadow=”no” text_shadow_blur=”0″ text_stroke=”no” text_stroke_size=”1″ text_overflow=”none” gradient_font=”no” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ style_type=”default” animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” fusion_font_variant_title_font=”400″ fusion_font_family_title_font=”Poppins” font_size=”30″]The Strategic Shift: GCCs as Innovation and Value Hubs[/fusion_title][fusion_text animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” fusion_font_variant_text_font=”400″ fusion_font_family_text_font=”Open Sans” margin_bottom=”0px”]

The traditional view of GCCs as solely cost centers is changing. Today, GCCs are evolving into strategic hubs, driving innovation and acting as centers of excellence (PwC) This evolution is fueled by the integration of AI, which allows GCCs to combine subject matter expertise with cutting-edge technology to create optimal environments for innovation.

From Cost Centers to Strategic Assets: GCCs are no longer just about outsourcing; they are now critical nerve centers that drive strategic systems and play a crucial role in reshaping enterprises.
AI-Powered Innovation: More than 75% of new GCCs are building capabilities in emerging technologies such as AI/ML (ANSR). This demonstrates a clear trend toward leveraging AI as a core component of GCC operations.
Automation of Routine Tasks: AI is automating routine tasks across industries, from data processing and invoice handling to customer service and fraud detection. This allows GCC teams to focus on strategic initiatives that advance the organizational vision and enhance customer success.

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AI Implementation: Transforming Operations

AI’s impact on GCCs is profound, reshaping various business operations. A recent article by Nasscom and Accenture revealed the different ways this is taking place:

Supply Chain Optimization: AI analyzes historical data and market trends to enhance demand forecasting and optimize logistics.
Enhanced Marketing: AI enables rapid content creation and enhances online customer experiences.
Improved Customer Service: AI-powered conversation agents simplify customer interactions and improve resolution rates, handling even complex tasks.
Finance and HR: AI is reshaping functions like talent acquisition, financial reporting and analysis, and procurement processes.
Data-Driven Decision-Making: AI-powered analytics and machine learning algorithms enhance the ability of GCCs to make informed decisions with greater precision and speed, using predictive analytics to forecast trends and improve customer experience.
Digital Twin Transformation: Human-AI collaboration is transforming GCCs into digital twins, leveraging their expertise to act as a second headquarters.
Mega-Processes: Companies are moving towards end-to-end value streams. AI is key to implementing mega-processes like “Insight to Plan”, “Ideate to Scale”, “Engage to Advocate” and “Plan to Deliver”, streamlining and improving these workflows.

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Talent and Workforce: Navigating the AI Shift

The integration of AI requires a significant focus on talent management and workforce skilling. The fear of job obsolescence needs to be proactively addressed, with comprehensive upskilling programs to ensure employees can leverage AI tools and move into more strategic roles.

Upskilling Imperative: GCCs are prioritizing talent reskilling and upskilling, with a focus on AI integration. 78% of GCCs are upskilling teams for GenAI adoption (EY), as well as integrating talent from GCCs into core global innovation teams.
AI Capabilities: GCCs must focus on developing leaders who can drive AI initiatives, nurturing talent with a global perspective and aligning skills with evolving technology.
Data and Analytics Skills: Data and analytics skills are crucial for GCCs, with a high demand for expertise in Business Intelligence (BI) and data visualization.
Continuous Improvement: Continuous feedback to AI models is essential for refining accuracy and efficiency, creating a collaborative improvement loop.
Leadership-Driven Innovation: Fostering a leadership-driven innovation culture is a key differentiator for GCCs.

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Examples of AI in Action

Various companies across industries are already leveraging AI in their Indian GCCs:

Healthcare: The Indian GCC of a German healthcare provider has developed over 40 GenAI-led innovations, including the ‘AI Pathway Companion,’ which integrates patient data for better care plans and treatments.
BFSI: GCCs in the financial sector use AI/ML for fraud detection and risk mitigation, with GenAI identifying suspicious behavior in unstructured data like social media interactions.
Consumer Goods: Carrier has a Digital Hub in India that is leading innovation in deep tech. This hub utilizes AI, machine learning, big data, cybersecurity, and IoT to create intelligent climate solutions.
Automotive: A global automobile manufacturer is using generative AI to shorten the time to turn data into knowledge and real-time insights.
Consulting: Accenture has invested in a Machine Creative Studio, a GenAI accelerator to create first-draft multimodal content. Accenture has integrated GenAI across the entire content lifecycle, from insights to briefs to content and evaluation, achieving significant productivity gains.
Tech: Microsoft is investing in India’s AI and cloud infrastructure and is aiming to train 10 million people in AI skills over the next five years through its ADVANTA(I)GE India program. Microsoft also aims to expand its cloud and AI infrastructure across its data center campuses in the country.

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The Role of Astravise Services: Your Partner in Transformation

Astravise Services is uniquely positioned to help your organization navigate this AI-driven transformation. We understand the complexities of integrating AI into GCCs and offer strategic guidance to maximize its value.

Strategic Alignment: We help you align your GCC with your parent company’s overall strategy, ensuring that AI initiatives support your business objectives.
Value-Driven Approach: We work with you to evolve your GCC from a cost center to a reinvention engine, focusing on end-to-end business capabilities and value creation.
Talent Nurturing: We help you nurture talent with the necessary AI skills and encourage a culture that embraces innovation.
Clear Roadmap: We help you create a clear roadmap for implementing and scaling human-AI collaboration, from setting objectives to prioritizing workforce enablement.
Navigating Change: We help you navigate changes in business and technology, ensuring your GCC remains a strategic asset and a driver of innovation.

The AI revolution in Indian GCCs presents both challenges and unprecedented opportunities. Companies that embrace this change and strategically integrate AI will be the ones who thrive in the future. With Astravise Services as your partner, you can confidently navigate this transformation, ensuring your GCC becomes a center of innovation and a driver of your business’s global success. We are committed to helping you not only adapt but also lead in this new era of human-AI collaboration, turning your GCC into a digital twin and a vital part of your global operations.

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The Rise of Hybrid Work Models in Global Capability Centers

Posted on January 22, 2025 by Venkatesh Bhat

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What will the workplace of the future look like? It will be a dynamic environment where technology, flexibility, and human-centric design converge to create a more efficient and engaging employee experience. This powerful blend of adaptability, creativity, and inclusiveness drives the evolution of work and the same applies to Global Capability Centers as well.

Previously, GCCs were seen as cost-effective back-office operations, however, they have now evolved into innovation hubs that shape global business strategies and redefine workplace standards. Crucial to this evolution is the hybrid work model. Many Indian corporations, such as Deloitte India and KPMG, are shifting towards hybrid work models in 2025. This model harmonizes productivity with flexibility, creating new opportunities for talent and collaboration worldwide. This blog explores the future of the workplace, focusing on the role of GCCs in shaping this transformation.

The Transition to Hybrid Work Models

The COVID-19 pandemic brought about profound changes in workplace flexibility, forcing global businesses to recognize the need for remote work and adapt rapidly to this new operational model. The transition to GCCs sped up the implementation of hybrid work models, integrating on-site functioning with remote working arrangements.

A 2023 report from McKinsey indicated that companies implementing hybrid work experienced increased productivity. Approximately 59% of employees preferred flexible work conditions (McKinsey & Company, 2023). In India, IT professionals prioritize work-life balance and location flexibility. This has proven particularly advantageous for GCCs in such competitive labor markets.

The Advantages of Hybrid Work Models in GCCs 

Access to a Global Workforce :
Through workforce enablement, GCCs globally have access to a broader talent pool. This has proved beneficial in countries such as India and the Philippines, where competition for skilled workforce is high. Hybrid work setups enable GCCs to attract and retain top talent. They allow employees to choose between working from home or the office.
Cost Savings:
The adoption of hybrid models has reduced utility costs and operational expenses, such as office space costs. A 2022 Global Workplace Analytics report stated businesses can save huge costs through an effectively executed hybrid work strategy. This amount was predicted to be around $11,000 per employee every year.
Enhanced Collaboration and Innovation:
Modern collaboration tools like Microsoft Teams, Slack, and Zoom enable effective communication among remote teams. Global teams work together on innovative solutions in a hybrid framework that encourages a variety of viewpoints. GCCs benefit from combined expertise that propels business strategies ahead.

Challenges in Adopting Hybrid Models:

While hybrid work models offer numerous benefits, they also present challenges that GCCs need to address:

Fostering Team Cohesion:
A key challenge of hybrid work models is balancing remote and on-site teams. Communication gaps and collaboration difficulties can arise, leading to inefficiencies. Technology issues and scheduling conflicts further complicate coordination. Additionally, maintaining company culture and addressing security concerns is crucial to ensure seamless operations. To ensure productivity regardless of their work locations, it is crucial to ensure seamless communication and collaboration between teams.
Cybersecurity Risks:
Cybersecurity threats are high as employees access sensitive information from remote locations. Cybersecurity and employee cybersecurity training are critical issues requiring immediate attention. GCCs must invest in comprehensive cybersecurity measures, including multi-factor authentication, endpoint safeguarding, and routine audits. As highlighted in the EY survey report below, the risk of a data breach due to hybrid working is a significant concern for GCCs.

Data Source: EY’s Global Capability Center (GCC) Pulse Survey 2024
Infrastructure and Technology:
The effectiveness of remote work hinges on the availability of appropriate tools and infrastructure. Therefore, GCCs will be responsible for equipping their employees with the necessary resources, such as high-speed internet connections, comfortable and ergonomic workspaces, and secure VPNs.

Key Approaches for Effective Hybrid Work Models

Invest in Technological Solutions:
Selecting and implementing the right digital tools for the business is crucial. From project management systems like Trello and Jira to virtual communication solutions, an appropriate tech stack can enhance hybrid work efficiency.
Emphasize Employee Engagement:
Frequent virtual check-ins, training sessions, and team-building initiatives can boost employee satisfaction and retention rates.
Establish Cyber Security Protocols:
Businesses must prioritize data integrity and regulatory compliance by implementing secure access procedures, data encryption, and real-time monitoring.
Hybrid Work Models and DEI (Diversity, Equity, Inclusion) Initiatives:
Hybrid work models in GCCs focus on creating inclusive work environments and enhancing operational efficiency. According to an Inductus report, 60% of GCCs worldwide have enforced policies to enhance gender equity, neurodiversity, and inclusivity.For example, Accenture’s GCC in India aims to achieve a 50:50 gender balance by 2025 through focused recruitment and mentorship initiatives. This commitment to diversity is fostering better representation and increased opportunities for all employees within GCCs.
Employee Well-being in Hybrid Work Models:
In the hybrid work era, employee health and happiness are a major focus. Specialized mental health initiatives that provide resources like counseling, wellness workshops, and seminars on stress management are offered by more than half of GCCs worldwide.Many organizations have invested heavily in AI-driven tools for employee well-being. These tools track stress due to workload and suggest strategies to help employees achieve a balanced work-life dynamic. This approach is part of a larger effort to provide flexible working options and ensure that employees feel supported in all dimensions of their professional and personal lives.

The Future of Hybrid Work in GCCs 

The hybrid work model is more than a fleeting solution; it serves as a sustainable strategy that corresponds with the changing expectations of the workforce and the needs of businesses. As GCCs continue to evolve and innovate, the hybrid work model will remain integral to their development narrative. According to a 2023 McKinsey report, companies adopting hybrid models saw a 7% increase in productivity.

We at Astravise Services can guide you through the complexities of labor laws and regulations to maintain compliance and reduce risks. We also create and execute effective compensation and benefits packages, drawing in and keeping the finest talent for your GCC. Our comprehensive strategy merges talent recruitment, process enhancement, and technology integration, guaranteeing a successful GCC experience. We offer highly customizable services that can be tailored to align with specific requirements perfectly.

Establish your Global Capability Center (GCC) in India with the support of Astravise Services to create a future-ready organization.

Book your free consultation now.

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How GCCs are Driving Innovation in India’s tech landscape

Posted on January 9, 2025 by Venkatesh Bhat

Establishing GCCs in India initially presented several key challenges: inconsistent infrastructure, high attrition, regulatory complexities, cultural fit, poor connectivity in Tier-2 and Tier-3 cities, cumbersome administrative hurdles, and the need for Indian subordinates to adapt to international conduct codes, making talent retention a significant challenge.

Today, the situation has drastically changed. High-tech IT parks, seamless internet connection, and government policies such as Digital India and Make in India have revolutionized the tech industry. Emerging Tier-2 and Tier-3 cities now have the infrastructure needed for GCC operations at an affordable price. Initiatives such as Skill India and corporate and academic partnerships have effectively reskilled the workforce, creating a sustainable talent pipeline. Each successive improvement not only overcomes the initial hurdles but also establishes a significant competitive advantage, thus enhancing India’s appeal to GCCs compared to other countries.[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container type=”flex” hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” align_content=”stretch” flex_align_items=”flex-start” flex_justify_content=”flex-start” flex_wrap=”wrap” hundred_percent_height_center_content=”yes” equal_height_columns=”no” container_tag=”div” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” status=”published” border_style=”solid” box_shadow=”no” box_shadow_blur=”0″ box_shadow_spread=”0″ gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” 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Technological Expertise: The Cornerstone of Success For GCC in India

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India has a large pool of resources in advanced technological competency areas needed by GCCs. These centers thrive on such talent reserves, making it possible to create a Center of Excellence (CoE) and foster innovations. A report by EY indicates that 26% of the GCC respondents plan to hike their budget on technology and transformation projects,20% over the total budget, aiming to optimize operations and drive innovation.

1. Abundance of Expertise in Emerging Technologies

India’s software tech professionals are the leading contributors to innovation across Artificial Intelligence (AI), Machine Learning (ML), blockchain, cybersecurity, and cloud solutions. Further details are provided below:

AI and ML

Artificial Intelligence (AI) and Machine Learning (ML) are rapidly evolving fields in India. They have significantly contributed to advancements in predictive analytics, natural language processing, and autonomous systems. For example, Microsoft’s Indian GCC has played a key role in advancing AI on the Azure platform.

According to the EY survey, 78% of GCCs are upskilling their teams for GenAI adoption, particularly in customer interaction through applications such as automated chatbots, personalized support, and sentiment analysis.

Blockchain

This technology is among seven anticipated to transform society and work. As more new projects breakthrough in decentralized finance (DeFi) and new digital currencies, Indian specialists are at the forefront of creating blockchain solutions. Blockchain technology is evident in secure transactions and smart contracts within GCCs in financial services, evidenced by JPMorgan, Bengaluru.

Cybersecurity

With hybrid and remote work models becoming the new normal, cybersecurity threats across the globe have grown significantly, thus creating a niche for Indian cybersecurity professionals. IT giants like Cisco rely on services from India to furnish risk management services for their international clients and manage complex security services.

According to an EY survey, 73% of participants believe cybersecurity and employee cybersecurity training are critical issues requiring immediate attention.

Cloud Computing

India’s cloud market is booming, and it is expected to reach $10.8 billion by 2025. This growth is attributed to the increased support from the government, as seen by measures like “Digital India.” For instance, Google’s Indian workforce largely drives the fine-tuning of its cloud services technology and utilities. This demonstrates the significant value a GCC in India can offer.

2. Enabling Centers of Excellence

Indian GCCs are gradually moving ahead from being mere back offices to becoming Centers of Excellence (CoEs) by integrating technology and business knowledge. These CoEs specialize in:

Creation of new fields and next-generation products and services.
Enabling digitization initiatives of multinational organizations.
Optimizing business processes with the help of artificial intelligence.

Thus, the skill of synchronizing technology development with business results is the key to the dominance of Indian talent in GCCs.

Indian professionals have the technical skills as well as the insight regarding various global business environments. This allows GCCs to:

Collaborate with people from different locations.
Tackle region-specific issues with region-specific technical solutions.
Global ideas for innovative cultural markets.

An example is IBM’s GCC in Bengaluru, which collaborates with international teams while delivering state-of-the-art, practical AI-based supply chain solutions.

As part of our GCC services, we implement robust governance and seamless integration that ensures GCCs can effectively connect with global teams. Our custom frameworks help companies maintain synchronization between geographically spread-out teams, enhancing productivity and innovation.

4. Accelerate the transformation to digital

[/fusion_title][fusion_text animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky”]For GCCs aiming for strategic growth through digitalization, the adaptability and innovative mindset of Indian professionals are indispensable. Hence, these centers play pivotal roles in:

Transforming monolith applications to cloud-based native structures.
Integrating AI tools in working processes that formerly were manual operations.

Improving customer satisfaction through analytics and automation by chatbots.[/fusion_text][fusion_title title_type=”text” marquee_direction=”left” marquee_speed=”15000″ rotation_effect=”bounceIn” display_time=”1200″ highlight_effect=”circle” loop_animation=”off” highlight_width=”9″ highlight_top_margin=”0″ title_link=”off” link_target=”_self” content_align=”left” size=”3″ text_shadow=”no” text_shadow_blur=”0″ text_stroke=”no” text_stroke_size=”1″ text_overflow=”none” gradient_font=”no” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ style_type=”none” animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” fusion_font_variant_title_font=”400″ fusion_font_family_title_font=”Poppins” font_size=”24″]5. Availability of Specialized Training Programs[/fusion_title][fusion_text animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky”]

Indian institutions are actively adapting their training programs with strategic alliances to meet the evolving needs of the job market and produce qualified technicians. According to a survey, 50% of participants stated that they are in the process of reskilling their existing staff as compared to 36% last year.

For example, Google’s Indian GCC collaborates with IITs, providing its employees with AI research training through specialized certification programs for complex projects.

IT Clusters in India

With over 1,700 centers, India is a prime location for GCCs, with 90% located in Bengaluru, NCR Delhi, Mumbai, Hyderabad, Pune and Chennai.

DATA SOURCE: NASSCOM

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Why Choose Bengaluru, Chennai, and Hyderabad for GCCs

Bengaluru stands out as the “Silicon Valley of India,” with 34-35% of GCCs located here. Its vast talent pool and innovative startup ecosystem create an attractive environment for companies looking to establish or expand their GCCs. Bengaluru is the largest IT hub, featuring over 30 IT parks, such as Electronics City, Whitefield, Outer Ring Road, and Marathahalli.

Hyderabad, hosting 12-13% of GCCs, has undeniably made its mark as a burgeoning IT hub. These factors, along with the city’s rapid IT sector growth, make it an attractive locale for multinational companies looking to establish a strong presence with their GCCs. The IT sector is primarily concentrated in Gachibowli, Madhapur, and Nanakramguda.

Chennai, contributing 9-10% of GCCs, is a hidden gem. The city brings a unique advantage with a solid industrial foundation, top-notch educational institutions, and a rapidly growing IT sector. Home to southern India’s largest operational IT SEZ is the 43-acre DLF IT Park, also known as DLF Cyber City.

Is Setting up a GCC in India the Next Step for You?

The future for GCCs in India is bright, given that AI and automation breakthroughs allow GCCs to move human capital from transactional roles to transformational roles. Advanced data analysis will further improve decision-making processes while strong cybersecurity measures will become crucial as cyber threats continue to grow in sophistication and frequency. Organizational success hinges on attracting and retaining top talent, necessitating significant investment in blended learning environments, adapting to remote and hybrid work models, and fostering a positive corporate culture.

Astravise Services has experience assisting global organizations in setting up GCCs in India, as well as holistically managing the GCC operations on behalf of our clients. Recognizing that each client’s need is different, we offer highly customizable services that can be tailored to align with specific requirements perfectly. We have an extensive network of partners that can help your organization accelerate the process and integrate with the established IT clusters in India.

We also provide strategic CHRO services that support organizations in human capital management, leadership development, learning and development, and succession planning.

Book your free consultation now.

Source: Global Capability Center (GCC) Pulse Survey, Business Today, Inductus report

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Top Trends of 2025 for GCCs in India

Posted on December 31, 2024 by Venkatesh Bhat

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India currently hosts the world’s largest GCC base, with 17% of global GCCs operating within its borders as of 2024. As we enter 2025, the Indian GCC landscape is poised for significant transformation. This report delves into ten key predictions that will shape the future of these centers, covering advancements in technology, talent acquisition, and the evolving role of GCCs in the global business ecosystem.

Trend 1

MNCs are no longer solely focused on cost optimization when establishing GCCs. The emphasis has shifted towards strategic value creation. The decision to invest in a GCC’s hinges on its ability to drive innovation, foster a digital-first approach, and generate sustainable competitive advantages. While cost-effectiveness remains an important factor, it is now viewed as an incidental benefit rather than the primary driver for GCC establishment, (Blog from Zinnov, December 2024).

Trend 2

The rapid expansion of GCCs in India is poised to extend its reach to Tier 2 cities such as Coimbatore, Indore, Mangalore, and Bhubaneswar. These emerging talent hubs offer valuable benefits such as highly skilled workforce, lower operating costs due to a more affordable cost of living, and potentially higher employee retention rates as compared to Tier 1 cities. This strategic shift will not only benefit businesses but also contribute significantly to the economic development of these emerging regions. (Economic Times article, December 2024.)

Trend 3

Indian state governments are targeting GCCs by implementing policies aimed at attracting investments, such as the latest Karnataka GCC Policy 2024-2029. States like Uttar Pradesh, Madhya Pradesh, Telangana, and Maharashtra are offering compelling incentives, including tax breaks and infrastructural support, in the hopes of projecting themselves as worthy choices for new GCCs to set up. This increased competition among states provides GCC investors with a wider range of options and more favourable conditions.

Trend 4

Existing and new GCCs are adopting a multi-functional model, in place of traditional spaces like operations and technology. These centers plan to expand their scope to include research and development, finance, marketing, and data-analytical functions. This fosters cross-functional collaboration, leading to innovation in various departments. This positions GCCs as crucial to a company’s global strategy. GCCs offer diverse capabilities, helping corporations streamline their operations, deliver solutions that support long-term goals of businesses and even highlights the potentials of GCCs becoming digital twins of their HQ’s. (Communications Today article, June 2024)

Trend 5

GCCs are keenly focusing on the adoption of cloud computing, AI integration, and an overall digital-first approach. GCCs have realized that leveraging technology, operations, and back-office innovations is essential to stay abreast of competition. This approach ensures streamlined and automated processes that produce great efficiency while also enabling flexibility and cost-efficiency. AI is utilized for advanced data analysis and optimizing operations. This trend is critical to enhance productivity, increase innovation, and deliver better solutions and services. This ultimately sets GCCs as vital players in business transformation. (Blog from Denave, December 2024)

Trend 6

A blog from Morgan Lewis (June 2024), states that the traditional method of parent companies establishing independent subsidiaries is becoming obsolete due to the rise of BOT (Build-Operate-Transfer) and vendor-assisted GCC models. These models offer better scalability, reduced risk, and lower upfront investment. Companies can leverage external vendors’ expertise, infrastructure, and talent pools, for quicker implementation and better operations. The BOT model allows companies to operate a GCC with the ability to transfer ownership after it is fully established. This approach is flexible and low risk, allowing corporations to focus on core business functions while mitigating the complexities of managing different units.

Trend 7

In high-demand jobs like AI, data analytics, and cybersecurity the competition for talent is on the rise. This necessitates making talent retention and re-skilling critical decision points for the boardroom. A blog from Zinnov (May 2024) highlighted, companies must prioritize upskilling their workforce to meet technological demands while offering career opportunities to retain top talent. To improve employee retention and prepare the workforce for the future, organizations must cultivate a culture of continuous learning and offer flexible work arrangements. These initiatives are crucial for enhancing job satisfaction and ensuring employee retention.

Trend 8

As Tier 2 cities emerge as prominent talent hubs, and the competition for professionals grows, corporations are expending more energy in their hiring processes, as highlighted in a blog from Zinnov (August, 2024). In high-demand fields like AI, data science, and sustainability hiring approaches are focused on new talent. These cities offer a large talent pools at a lower cost, along with improvements in infrastructure educational programs and continued support from the government. Companies plan to leverage this untapped asset to reduce recruitment costs, and maintain a stable yet skilled workforce. This technique ensures that diverse skills can be accessed and that organizational capabilities in vital areas of potential growth can be strengthened.

Trend 9

The workforce expectations have evolved and GCCs are adapting by taking advantage of the hybrid work model with flexible variations (EY article, September 2024). Adopting a blend of in-office and remote work offers employees greater flexibility while holding onto operational efficiency. This helps companies tap into the broader talent pool of Tier-2 cities while supporting work-life balance, making this model extremely popular. Some corporations may adopt a more flexible model, with employees working remotely or collaborating during core office hours, depending on their roles. This approach reduces office space requirements, thereby helping to optimize costs. Embracing hybrid work models, GCCs can improve employee satisfaction, increase productivity, and create a diverse and resilient workforce.

Trend 10

Partnering with top educational institutions and other talent sources is a major method larger GCCs use to create a steady pipeline of trained professionals. These collaborations ensure the creation of talent pools in fields like AI, data science, and cybersecurity. GCCs can shape talent development to meet industry standards by offering placements, and internships and aiding in curriculum design. In addition to this, multiple government-funded skilling initiatives have been created to address the talent shortage in specialized fields like sustainability. These types of programs help provide quality training and certification to build a strong workforce. Thereby effectively addressing the GCCs’ need for a readily available pool of skilled talent.

Understanding these trends can help companies plan informed and effective strategies. GCCs will not only be pivotal in improving global operations, but also contribute towards job creation, upskilling of employees, and development of infrastructure in not just major cities but also in Tier-2 cities.

At Astravise Services, we provide integrated solutions that assist businesses in the effortless establishment and enhancement of their Global Capability Centers (GCCs). We guide you through the entire GCC journey, from strategic planning and model selection (including BOT and vendor-assisted approaches) to infrastructure development, talent acquisition, and operational excellence. Trust our expertise to deliver tailored, scalable solutions that drive value, reduce costs, and support your global business objectives at any location of your choice. Our goal is to transform your GCC into a hub of innovation and efficiency. Reach out to Astravise Services for a free consultation, today.

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The GCC Playbook: Why Karnataka is India’s Leading GCC Magnet

Posted on November 19, 2024 by Venkatesh Bhat

Karnataka stands as a beacon of innovation, hosting a thriving ecosystem of esteemed Global Capability Centers (GCCs) that lead India’s GCC landscape. The state boasts the largest share of the country’s GCC talent, with a significant portion of India’s workforce contributing to its dynamic economy. Karnataka’s GCCs play a crucial role not only in generating employment but also in fostering cutting-edge developments across technology, finance, and business services, making it a preferred destination for global enterprises seeking to establish their operations in India.

• Number of GCCs: Karnataka hosts over 500 GCCs, accounting for roughly one-third of all GCCs in India. This concentration reflects the state’s attractiveness to global enterprises, which see it as an ideal location for establishing operations that support core business functions, such as technology, finance, and customer support.

• GCC Workforce: Karnataka’s GCCs employ approximately 35% of the country’s total GCC workforce, highlighting the state’s significant share of India’s skilled talent pool. This workforce includes top engineers, financial analysts, and technology experts, many of whom are drawn to Bengaluru’s reputation as a tech hub. The state’s ability to continually attract and retain such talent further strengthens its appeal to global companies looking to establish and expand their GCCs.

• Economic Output: GCCs contribute around $22.2 billion annually to Karnataka’s economy, reflecting the substantial impact of these centers on the state’s GDP and overall economic growth. This economic contribution underscores the value that GCCs bring not only through direct job creation but also through associated services, infrastructure development, and technology advancements. This substantial economic output further reinforces Karnataka’s position as a leader in India’s digital economy.

• GCC sectors: Karnataka has a large number of GCCs in the BFSI and FMCG sectors. For example, 33% of GCCs for BFSI companies like Goldman Sachs and JP Morgan Chase are in Karnataka. 42% of GCCs for FMCG companies like Target, Walmart, and Unilever are in Karnataka.

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The state’s dominance is evident in its staggering share of India’s GCC presence, Karnataka is home to over 50% of the country’s GCCs. Karnataka, particularly Bengaluru, has become a magnet for Global Capability Centers (GCCs) for several strategic reasons:

Established Technology and Talent Hub
Bengaluru, is widely regarded as India’s “Silicon Valley.” Major tech companies and startups alike are based here, creating a rich ecosystem for talent acquisition, innovation, and industry growth.
Cost Efficiency for Multinationals
India’s proven cost efficiencies have consistently attracted multinationals to transition significant internal processes to India particularly Karnataka. This cost efficiency is further enhanced by state policies that offer tax breaks, infrastructure subsidies, and other incentives for foreign investors, making Karnataka a favourable destination for multinational companies.
Innovation and Research Focus
Many GCCs in Karnataka focus on innovation, product development, and high-value R&D functions. With access to some of India’s top engineering and technology institutions, including the Indian Institute of Science (IISc) and various IITs, Karnataka provides GCCs with a strong research ecosystem. The ability to innovate and quickly develop products & solutions attracts GCCs looking for cutting-edge advancements in technology, engineering, and software.
Mature Ecosystem for GCCs
Over the past few decades, Karnataka has developed a mature ecosystem for GCCs, with established players in IT services, finance, R&D, and engineering sectors. This presence creates a network effect where companies benefit from proximity to other multinationals, industry best practices, and collaborations within a well-developed professional ecosystem.
Skilled Talent Pool
Karnataka, particularly Bengaluru, has a highly skilled workforce in technology, engineering, finance, and research & development. The presence of top educational institutions and a large number of engineering and business graduates each year strengthens the talent base.
Quality of Life
Bengaluru’s cosmopolitan lifestyle, pleasant climate, and multicultural ambiance make it an inviting city for foreign professionals. This environment fosters a smooth transition for those relocating from abroad, supporting GCCs that rely on talent mobility and cross-cultural teams. The city’s blend of modern amenities, diverse communities, and recreational options provides a comfortable and enriching experience for professionals, enhancing its appeal as a preferred destination for global business operations.

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Karnataka’s Information Technology and Biotechnology Minister, Priyank Kharge, unveiled the state’s first dedicated Global Capability Centres (GCC) Policy for the period 2024-2029, to drive economic decentralization and position the entire state as a global GCC hub. Policy features include:

‘Beyond Bengaluru’ Initiative – Targeted Cities for Expansion

In order to decentralize growth and ease the burden on Bengaluru, the policy encourages GCC establishments in secondary cities such as Mangaluru, Mysuru, Hubballi-Dharwad, Belagavi, Kalaburagi, Tumakuru, and Shivamogga. By developing these regions into business hubs, the initiative aims to distribute economic activities across Karnataka, offering investors new locations with emerging talent pools and lower operational costs.

Incentives to attract Investments:

The policy offers several incentives to make regional cities attractive for GCC investments, including:

Rental Reimbursements: GCCs operating in the ‘Beyond Bengaluru’ areas can receive reimbursements on rental costs, helping them reduce initial operational expenses.
EPF Contribution Reimbursement: Companies will receive reimbursements on Employees’ Provident Fund contributions for newly hired employees, lowering hiring costs.
Electricity Duty Exemptions: Eligible companies in targeted cities will enjoy a five-year exemption from electricity duty, reducing overhead costs and promoting sustainable, cost-effective operations.
Grants for R&D: Infrastructure development grants are available to support research and development centers in regional cities, encouraging innovation and local job creation.
Support for Nano GCCs: Special provisions exist for small GCCs (5-50 employees), often nano-GCCs, with incentives aimed at encouraging small to medium enterprises in emerging tech fields.
Skill Development Grants: The policy includes grants for local training programs, ensuring a skilled workforce for GCCs in regional cities, and supporting Karnataka’s goal of becoming a tech-talent hub.

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Infrastructure and Skill Development:

Skill Training Programs:
The policy commits to upskilling 1 lakh professionals in cutting-edge areas like artificial intelligence, big data, cloud computing, and cybersecurity. This initiative aims to build a technically proficient workforce that can meet the demands of GCCs.
Infrastructure Investment:
Investment in infrastructure includes the establishment of IT parks, business hubs, and improved transport connectivity in targeted cities. The government’s Single-Window Clearance system and streamlined compliance processes make it easier for businesses to set up and operate in Karnataka, minimizing bureaucratic delays and enhancing business efficiency.

Thus, for foreign companies, Karnataka’s GCC policy offers direct benefits aimed at cost savings and operational efficiency. To summarize, Key incentives include tax breaks, duty exemptions, and financial rebates designed to reduce setup and operational costs for GCCs. The policy also ensures a streamlined regulatory environment, providing single-window clearances and fast-tracked approvals to minimize bureaucratic delays, allowing foreign companies to establish their operations swiftly and efficiently.

Astravise Services excels in setting up and managing Global Capability Centers (GCCs) in India, providing organizations with a competitive advantage in operational efficiency, cost optimization, and business scalability. Our seasoned expertise enables us to establish fully functional GCCs tailored to meet the unique needs of each client, helping them harness the advantages of local talent, infrastructure, and streamlined operations. From planning and regulatory compliance to recruitment and operational management.

Our leadership team brings a wealth of experience in guiding companies through complex GCC operations, emphasizing both agility and strategic foresight. Our goal is to empower businesses with a solid foundation in the GCC space, enabling them to thrive in diverse markets while leveraging our deep understanding of regional dynamics and compliance frameworks.