What’s ahead for India’s GCC surge: Why 2026 will be a defining year for global innovation

India’s Global Capability Centers (GCCs) are fast becoming powerhouses of innovation. Projected to hit $110 billion in the next five years, this sector is placing India firmly on the global innovation map. 

Originally seen as cost-effective support units, GCCs are now integral to digital transformation, data strategy, and AI development for global corporations. Major players like Google, Microsoft, Amazon, and Maersk are increasingly relying on their India-based GCCs — not as back offices, but as critical partners in building products, training AI, and enhancing customer experience. In effect, the global center of digital innovation is shifting toward India. 

The real acceleration begins in 2026. While digital transformation continues to be a major catalyst, it’s not the only driver. Following a tumultuous period of pandemics, trade tensions, and supply chain disruptions, companies worldwide are doubling down on resilience, agility, and scalability — goals that align directly with what India’s GCCs are now delivering. 

Why 2026 is a turning point 

A convergence of forces is fueling India’s GCC boom. Enterprises are moving away from a cost-centric lens, drawn instead by India’s strengths in AI, automation, and data-driven innovation. With the world’s largest pool of STEM talent and a fast-rising innovation index rank (39th globally in 2024), India is positioned to lead. EY forecasts that the GCC workforce will more than double — from 1.9 million to 4.5 million — within five years. 

Today’s GCCs are built for ownership. Centers in Bengaluru and Mumbai are co-creating digital solutions, while emerging cities like Kochi and Jaipur gain traction with cost and talent advantages. 

What’s driving the next wave 

India’s GCCs are stepping beyond cost-saving execution. They are now trusted to design, not just replicate. India has also become a central hub for data and AI, handling data enrichment, quality management, and AI training for global organizations. 

This growth extends beyond the metros. Tier II and III cities are evolving into stable, technically capable ecosystems. Moreover, GCCs are now tightly woven into India’s startup and academic networks, accelerating the journey from prototype to product. 

These shifts represent a structural transformation in how enterprises view their digital futures. 

The governance imperative 

Unstructured growth risks misalignment. As GCCs scale, governance must evolve too. Offshoring strategic work requires clear definitions of data ownership, accountability, and innovation charters. 

GCCs must be empowered to lead — not just operate — with clear mandates and strategic visibility. Jointly built dashboards, co-defined innovation KPIs, and phased knowledge transfer plans are essential for cross-border alignment. 

Data foundations for scalable innovation 

To support sustained innovation, enterprises must treat data as a product. This means: 

1. Unified data infrastructure: Ensure data integrity with strong observability frameworks and enterprise-wide taxonomies. 
2. AI at scale: Build reusable models, scalable AI assets, and domain-specific solutions like risk engines and recommendation systems. 
3. Institutionalised knowledge: Maintain expert-driven, well-organized libraries to refine AI and preserve core expertise. 

These priorities reinforce the role of GCCs as co-owners of innovation. 

Mitigating risks in offshored data work 

Offshoring should never compromise security or compliance. Enterprises must: 

• Define which data can be processed offshore and establish clear localisation policies. 
• Enforce encryption, anonymization, and unified data governance tools to avoid siloed systems. 
• Ensure all data has a single accountable owner. 

Cultural alignment is also crucial. Both HQ and GCC teams must share a unified view on automation risk and experimentation appetite, built into formal frameworks. 

Measuring the right outcomes 

Legacy metrics like cost savings and SLA compliance don’t capture the strategic value of modern GCCs. Instead, measure: 

• Revenue impact from GCC-led products 
• AI model deployment and reuse rates 
• Time-to-market for data products and automation outcomes 
• Talent development and leadership roles within India 

Scorecards should be co-designed by HQs and GCCs to reflect their joint stake in innovation. 

Looking beyond 2026 

The years ahead will determine which GCCs evolve into true innovation centers. With AI and data embedded in every business function, India is poised to become the global origin for digital solutions. 

Expect stronger integration with India’s startups and academia, more end-to-end ownership for GCCs, and greater focus on responsible AI and leadership autonomy. The defining advantage will go to those who treat their GCCs not as extensions — but as strategic brains of the business. 

The next 12 to 18 months are pivotal. The decisions made today around governance, data, and culture will shape whether India’s GCC boom leads to long-term global leadership — or remains a missed opportunity.

(Priyanka Raju is Senior Vice President at Straive, a global company specialising in data and AI solutions, content technology, and business process outsourcing)