Mid-market Global Capability Centers (GCCs) in Karnataka are no longer quiet back-office units. They are becoming strategic innovation engines, maturing 1.4 times faster than their peers and driving AI, cloud, and cybersecurity transformation for global enterprises. A new Zinnov–KDEM study, “Karnataka Mid-Market GCC Report 2025: Lean, Local, and Globally Impactful,” highlights this shift.
GCC Pulse was invited to the launch of the Karnataka Mid-Market GCC Report 2025 and the KATALYST GCC Handbook by KDEM and Zinnov. In this article, we unpack the key findings and share glimpses from the event.
Karnataka: The Growth Epicenter
Karnataka now hosts 230+ mid-market GCCs employing 74,000+ professionals, nearly half of India’s total. Bengaluru anchors this growth, with more than 240 centers and the country’s highest concentration of AI/ML and digital talent. The state contributes 48% of all global mid-market GCC engineering talent and half of India’s product management talent in this segment.
What sets these GCCs apart is their pace. Despite being leaner—just 35% the size of larger peers—they consistently deliver stronger innovation and productivity. Many are already owning global product charters, embedding CXO-level leadership roles, and operating as AI-first organizations.
| Metric | Highlights |
|---|---|
| GCC Count | 230+ centers, 74,000+ professionals |
| Growth Speed | 1.4X faster maturity vs. national peers |
| New Setups | 65% of new mid-market GCCs since 2023 in Karnataka |
| Talent | 48% of global engineering talent and 50% of product managers in this segment are based here |
| Efficiency | Operate at just 35% size of large peers but deliver higher innovation |
| Beyond Bengaluru | 15–25% lower costs & attrition in tier-II cluster cities |
Policy and Ecosystem Convergence
This success is underpinned by India’s first dedicated GCC Policy (2024–29), talent-skilling initiatives, and the ‘Beyond Bengaluru’ program, which extends growth to tier-II cities like Mysuru, Mangaluru, Hubballi–Dharwad, and Belagavi.
As B.V. Naidu, Chairman of KDEM, noted:
Karnataka is not just a hub; it is the backbone of India’s global innovation leadership. These GCCs are redefining success with agility, talent density, and global product ownership.
Punching Above Their Weight
The report also highlights GCC’s pioneering in AI, Cloud, Cybersecurity, and Analytics. Leading mid-market companies have scaled rapidly from Karnataka, establishing AI Centers of Excellence and leadership pathways for Indian talent.
Pari Natarajan, CEO & Co-founder of Zinnov, noted the shift:
What’s striking is that this acceleration is happening in just three to five years, signaling not only the quality of talent but also the depth of ecosystem integration here.
Future Outlook
The trajectory is clear. With India’s GCC sector headed towards a USD 100 billion opportunity by 2030, Karnataka’s mid-market centers are poised to be the sharpest growth lever.
Dr. Ekroop Caur, IAS, Secretary, Department of Electronics, IT, Bt & S&T, summed it up:
By 2029, Karnataka will add 500 new GCCs, create 350,000 jobs, and generate USD 50 billion in economic output. The findings reaffirm how mid-market GCCs are setting global benchmarks.
From Bengaluru’s DeepTech corridors to tier-II innovation clusters, Karnataka is scripting the blueprint for lean, inclusive, and globally impactful growth.
