India’s GCCs move from cost centres to global innovation hubs: Zinnov
The GCC ecosystem in India is moving beyond cost arbitrage, taking on product, engineering and AI mandates as global enterprises increasingly shift strategic work to the country.
- Aug 20, 2026,
- Updated Aug 20, 2026 8:03 PM IST
India’s global capability centre (GCC) ecosystem is entering a new phase, with enterprises increasingly shifting high-value engineering, product development, artificial intelligence (AI) and strategic functions to the market, signalling a move beyond the traditional cost-arbitrage model.
The number of GCCs in India is estimated to have risen around 32% between FY21 and FY26 to 2,117, operating 3,728 units and employing more than 2.36 million people. GCC revenue is estimated at $98.4 billion in FY26, according to the Zinnov report.
The report says 96% of GCCs set up since FY21 started with a product, research and development (R&D), or engineering mandate. Newer centres are also reaching higher levels of maturity faster; with the time taken to move from setup to maturity falling from five to 10 years for centres established between 2002 and 2015 to less than five years for those set up since FY21.
The share of commodity and routine work has declined sharply since 2015, while the proportion of frontier cutting-edge R&D has increased. Nearly half of India’s GCCs now have a share of such frontier work comparable to or higher than their headquarters, the report said.
AI is accelerating this transition. India now has more than 1,200 GCCs with AI/ML capabilities, while generative and agentic AI account for 52% of AI use cases in Indian GCCs, overtaking traditional AI/ML for the first time.
MUST READ: What’s slowing the next phase of GCC growth?
Importantly, companies building AI capabilities are assigning India more complex work than those merely adopting AI. This is also reshaping hiring. GCCs are moving away from generic technology roles towards specialised capabilities combining AI engineering, domain expertise, product thinking and enterprise leadership. India has around 5,50,000 AI/ML professionals, with roughly half working in GCCs, leaving a sizeable talent pool for further expansion.
The report therefore points to a broader shift that India’s GCC opportunity is no longer simply about adding centres or headcount. As global companies increasingly place product ownership, AI and strategic decision-making in India, the next phase of growth will be determined by the country’s ability to supply specialised talent, infrastructure and an operating environment capable of supporting global mandates.
ALSO READ: Embassy REIT Q1 revenue rises 17% as GCC demand drives 1.3 mn sq ft of leasing
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India’s global capability centre (GCC) ecosystem is entering a new phase, with enterprises increasingly shifting high-value engineering, product development, artificial intelligence (AI) and strategic functions to the market, signalling a move beyond the traditional cost-arbitrage model.
The number of GCCs in India is estimated to have risen around 32% between FY21 and FY26 to 2,117, operating 3,728 units and employing more than 2.36 million people. GCC revenue is estimated at $98.4 billion in FY26, according to the Zinnov report.
The report says 96% of GCCs set up since FY21 started with a product, research and development (R&D), or engineering mandate. Newer centres are also reaching higher levels of maturity faster; with the time taken to move from setup to maturity falling from five to 10 years for centres established between 2002 and 2015 to less than five years for those set up since FY21.
The share of commodity and routine work has declined sharply since 2015, while the proportion of frontier cutting-edge R&D has increased. Nearly half of India’s GCCs now have a share of such frontier work comparable to or higher than their headquarters, the report said.
AI is accelerating this transition. India now has more than 1,200 GCCs with AI/ML capabilities, while generative and agentic AI account for 52% of AI use cases in Indian GCCs, overtaking traditional AI/ML for the first time.
MUST READ: What’s slowing the next phase of GCC growth?
Importantly, companies building AI capabilities are assigning India more complex work than those merely adopting AI. This is also reshaping hiring. GCCs are moving away from generic technology roles towards specialised capabilities combining AI engineering, domain expertise, product thinking and enterprise leadership. India has around 5,50,000 AI/ML professionals, with roughly half working in GCCs, leaving a sizeable talent pool for further expansion.
The report therefore points to a broader shift that India’s GCC opportunity is no longer simply about adding centres or headcount. As global companies increasingly place product ownership, AI and strategic decision-making in India, the next phase of growth will be determined by the country’s ability to supply specialised talent, infrastructure and an operating environment capable of supporting global mandates.
ALSO READ: Embassy REIT Q1 revenue rises 17% as GCC demand drives 1.3 mn sq ft of leasing
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine