Small is the new big for Global Capability Centres (GCC) in India, as mid-market companies are driving the change. Innovation across processes and practices in AI/ ML, Cloud Computing, Cybersecurity, and Data Science is now noticeable across this segment.
Over the last two years, mid-tier GCCs have been pathbreakers with 45 new units setting up their India operations. These now account for nearly 35 percent of the number of GCCs. The mid-tier GCCs include 480 centres and 680 units, employing over 210,000 individuals and constituting 27 percent of total Indian GCCs.
The NASSCOM-Zinnov report, launched at the GCC Summit in Hyderabad last week, also noted that several mid-tier GCCs are now serving as transformation hubs. With a significant share of global talent, there is a high concentration of niche deep tech skills, their role is becoming central in engineering research and design, and they have an agile operating model, allowing for faster leadership elevation.
Many of the mid-market GCCs are functioning as process transformation engines for their enterprises, the report said, indicating a higher maturity for these entities.
Global corporations that may have revenues between $100 million and $1 billion and have operations in India are classified as mid-market GCCs. They typically work in various niche segments and thrive with a lean operating model.
Cheer for Mid-tier GCCs
Several highlights of these mid-market GCCs have been highlighted in the research carried out for the NASSCOM-Zinnov report. These include:
- Nearly 47 percent of the global product management talent in the mid-market GCCs is housed in India
- Over 80 percent of these GCCs are impacting enterprise hiring, performance, and culture playbooks from within India
- Approximately 60 percent of end-to-end product and platform ownership in enterprise portfolios is driven by these companies
- More than 25 percent of the global talent in deep tech is at these mid-market GCCs
- Such talent makes them a hub for innovations in cloud, AI/ML, Cybersecurity, and Data Science
- There are 1.3X as many mid-market GCCs working as transformation hubs as non-mid-market GCCs
While these highlights point towards a bright future, the flavour of the mid-market GCCs has the promise to show the way. These entities are moving from being a cost centre to being market makers, which points towards their strategic importance in their respective ecosystems. The innovation being done at these centres is working with a start-up mindset, and they are influencing policy too. Specific to key industries, some of these mid-market GCCs have specialised offerings, and some of their innovation engines could be gearing up for an IPO. All these factors point to the promise for the industry and the workforce that is driving it.
Despite their impressive growth, some headwinds need to be addressed. This segment needs more young professionals to join their ranks so that they can work towards a career in the industry. The industry is still to devise standardised operating procedures, while it has also struggled to establish partnerships for innovation. They have little presence in the local ecosystem and, hence, are not an established brand enough to attract the right talent.
The headwinds notwithstanding, the NASSCOM-Zinnov report points out that there is potential to attract nearly one-fourth of the mid-market GCCs, operating around the world, to India. These mid-market GCCs could be transformed into an AI-native innovation engine and drive the Indian edge with support from the entire ecosystem.
Policymakers Lay the Carpet
India is tweaking its policies and working on a comprehensive policy for GCCs. As it works on the updated policy, the Ministry of Electronics and Information Technology (MeitY) is trying to complement the national policy with that of states so that GCCs could access a wider talent pool beyond the key centres where they are thriving. Reports suggest that specific sectors could see an added policy push to encourage companies. The GCC policy could emphasise long-term talent-building in frontier areas such as generative AI, healthcare, and financial intelligence, a MeitY official had said.
Several states are waking up to the opportunity and are welcoming companies that are setting up these centres. Karnataka, Maharashtra, and Uttar Pradesh are among several states that have already announced a policy for the GCC sector to attract investments. Policymakers across states can promote India as a cost-effective GCC-as-a-service opportunity for large corporations.
Bengaluru, Hyderabad, Mumbai, Pune, and Delhi NCR continue to dominate the GCC landscape. New locations like Jaipur, Vadodara, Ahmedabad (GIFT City), Kochi, Thiruvananthapuram, Chandigarh, Nasik, Coimbatore, Visakhapatnam, Bhubaneswar, and Indore are now emerging as alternatives. As the industry moves ahead, some GCCs are looking to evolve into GICs or global innovation centres.
The Rise of Mid-Market GCCs Is Just the Beginning
Mid-market GCCs are no longer the silent players in India’s global enterprise story—they are fast emerging as the pulse of transformation, innovation, and agility. Their unique blend of deep-tech talent, lean operations, and global ambition positions them as the ideal model for the next wave of strategic enterprise centers. While challenges around visibility, partnerships, and policy alignment remain, the momentum is unmistakably strong.
As India refines its policy framework and regional ecosystems open up, the time is ripe to nurture, scale, and spotlight these agile centers of excellence. With the right ecosystem support, mid-market GCCs can evolve into AI-native powerhouses and become the innovation engine that drives not just Indian industry forward—but the global enterprise agenda.
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