Geopolitics did not kill off India’s global capability centres; They evolved, instead!

Here is how GCCs or Global Capability Centres are adapting to new global geopolitical changes

Global Capability Centres in India Representative image

The last few months have seen many geopolitical headwinds which are changing the very dynamics in which the GCCs or the Global Capability Centres operate and adapt to the new changes. What many GCCs in India are witnessing lately isn’t a retreat but a strategic recalibration. Interestingly, despite global uncertainties and trade tensions, GCCs leased a record 28 million sqft of office space in India during 2024, underscoring that geopolitical volatility has only reinforced India’s position as the world’s most resilient talent hub.

GCCs have also evolved beyond their origins as cost-efficient delivery hubs and are now strategic engines of innovation and resilience, with the shifting geopolitical landscape accelerating this transformation. GCCs are diversifying their talent pools, adopting multi-location delivery models, and investing in digital-first operations to reduce dependency on single geographies. 

“We are seeing a pronounced move toward talent sovereignty wherein companies are no longer just offshoring work but are rather building complete innovation ecosystems that can operate independently of geopolitical disruptions. Nearly 67 per cent of new GCCs established in 2024 now lead mandates in AI, ML, and automation, positioning India not as a cost centre, but as a strategic asset that can pivot and scale regardless of external pressures. The geopolitical environment has also accelerated what I call the distributed resilience model. While Tier-1 cities still command 92 per cent of GCC footprint, we are observing a deliberate expansion into Tier-2 markets like Jaipur, Kochi, and Bhubaneswar. This change reflects the shift from cost optimisation to risk mitigation,” pointed out Devashish Sharma, Co-Founder and CEO, Taggd.

This expert says that geopolitical tensions have transformed the leadership dynamics within GCCs. Indian leaders are increasingly driving global talent strategy, with 62 per cent of GCC leaders emphasising that an India-first approach delivers stronger results. This represents a fundamental shift from the traditional hub-and-spoke model to a more autonomous, decision-making structure that can respond rapidly to changing global conditions.

“We are seeing increased activity from companies across multiple global regions, reducing traditional dependence on any single geographical market. This diversification of parent company origins creates a natural hedge against region-specific political or economic disruptions, with GCCs building more resilient business models that aren’t vulnerable to bilateral tensions or localised economic downturns. Looking ahead, the GCCs that will thrive are those viewing geopolitical uncertainty not as a constraint, but as a catalyst for deeper India integration. They are building not just teams, but ecosystems with R&D capabilities, leadership development, and innovation mandates that can operate as strategic assets regardless of global political winds,” remarked Sharma.

Recently, with the tariff changes clouding the global business climate, many companies are taking longer to commit to new investments, causing a short-term slowdown in GCC registrations through September. Even so, momentum is expected to pick up, with 60–70 new GCCs likely by year-end. So far, 25-30 GCCs have already been set up in this calendar year. The growth will be underpinned by India’s cost efficiency, rich talent pool, and solid infrastructure backbone.

India, the largest tech talent hub

“India remains one of the most sought-after GCC destinations, with a long-standing reputation as a global tech hub. Since tariffs have little direct impact on outsourcing services, India’s well-established ecosystem, deep tech talent pool, and existing investments make it a resilient choice. India is the largest tech talent hub with close to 6 million professionals. In comparison, Malaysia, the Philippines, other Asian destinations, plus Eastern European geographies have one-fourth the scale in terms of talent. For instance, the Philippines’ entire tech and BPM industry has 1.6 million total talent,” remarked Gaurav Vasu, Founder and CEO, UnearthInsight.

He adds that American companies are unlikely to move large-scale GCC work back to the US, as cost efficiency, access to a vast STEM talent pool, and operational scalability still strongly favour global hubs like India. “The US market faces higher wages, limited talent availability, and longer hiring cycles, making offshore locations more attractive for tech, analytics, and operations roles.

US CPA deficit to aid GCC growth

India, in fact, still stands to benefit more. The US currently faces the largest shortage of Certified Public Accountants (CPA), with projections indicating over 200,000 to be unfulfilled by 2025. This will result in more accounting firms moving to India GCCs. Since tariffs mainly target goods rather than services, they do not significantly alter the cost advantage of GCCs abroad,” added Vasu.

However, one aspect is clear: India’s GCC ecosystem has matured beyond being a cost play to becoming a geopolitical and innovation advantage. Companies that recognise this shift and invest accordingly will find themselves remarkably well-positioned for whatever global uncertainties lie ahead. It has been observed that GCCs in India are rapidly evolving their hiring and strategic approaches to align with technological advancements, workforce expectations, and global business needs.

For instance, GCCs are embracing AI, machine learning, cloud computing, and analytics across operations and recruitment. “Nearly half of the GCCs plan to deploy AI-powered hiring tools, automating candidate screening and assessments. This shift enhances efficiency in volume hiring and talent matching, while enabling remote onboarding and distributed team management. Investments in smart hiring platforms and HR tech partnerships are central to this strategy.

Upgraded hiring

At the same time, their hiring is now targeting professionals with 1–5 years of experience, especially in niche digital domains like AI/ML, cybersecurity, and data engineering. GCCs are competing for top early-career talent through campus outreach, online assessments, and attractive compensation packages including salary hikes and long-term incentives. Innovation labs and hackathons are used to identify high-potential candidates,” said Roop Kaistha, Regional Managing Director- APAC, AMS.

GCCs have recently adopted hybrid work models, combining remote and on-site setups, which are now standard, supported by flexible workspace policies and digital infrastructure. GCCs are tailoring location strategies based on function and skill availability.

Stakeholders in the GCC space believe that geopolitical uncertainties have made it clear that their business strategies have to be agile. There is a need to adapt to the changing conditions quickly, including the hiring strategies. On the business front, the growing proportion of critical and value-added activities has helped stabilise the GCCs.

“Our flexible hybrid model of working has enabled hiring talent where there is supply, not limited to our principal place of work. At the same time, changes in the domestic talent landscape with experienced professionals becoming available due to workforce realignments in large IT firms are easing hiring pressures and helping moderate wage inflation temporarily. The challenge lies in integrating this talent quickly and effectively to drive real business value,” pointed out Arvind Srinivasan, Chief Financial Officer, Thryve Digital Health.

He adds that they have continued to invest in training, including newer skills related to AI, to stay relevant in their value proposition. The strong dollar continues to keep their costs competitive in high rupee-denominated expenses.

GCCs are also moving up the value chain, transitioning from execution-focused roles to end-to-end ownership of critical business functions while strengthening domain expertise. Increasingly, GCCs in India are building and grooming high-impact roles, such as global product leads and advanced technology specialists, that were once exclusive to headquarters, elevating India’s strategic importance.

“The hiring agility of GCCs, combined with the ability to blend global expertise with deep local talent, enables GCCs to ensure operational continuity while tapping into emerging markets and skill clusters. Concurrently, they embed robust risk management frameworks to balance growth-focused strategies with preparedness for disruptions. In many ways, the current environment is not just testing GCCs’ adaptability but redefining them as pivotal, future-ready partners in organisations’ transformation journeys,” Amardeep Singh, Sr Vice President & BU Head, Encora India.

Evernorth Health Services India, which has a GCC in Hyderabad, is positioning itself to lead with agility, innovation, and resilience. This centre is not just a delivery hub for the company; it is also driving transformation. Its teams are using advanced technologies like AI and data analytics to build scalable, secure healthcare solutions tailored to diverse markets. “This proactive approach helps us stay ahead of compliance challenges and adapt to emerging global needs. Talent development is at the heart of our strategy. Through inclusive hiring, continuous learning, and cross-cultural collaboration, we’re cultivating a workforce that’s globally aligned and locally empowered. We are integrating regional insights into global strategies. As geopolitical shifts continue, our Hyderabad GCC stands ready, driving innovation, responsiveness, and long-term value for the customers we serve,” explained Yadhu Kishore Nandikolla, Human Resource Senior Director, Evernorth Health Services India.

Market experts agree that to combat the dynamic geopolitical environment, GCCs are moving away from traditional single-location operating models. Instead, they are adopting a more distributed approach by establishing a presence in multiple geographical regions. “This strategic shift helps in reducing the concentration risk. Moreover, the GCCs are actively leveraging global talent markets to access highly specialised skill sets that may not be readily available in one region. Building geographically and culturally diverse teams enables business continuity for organisations during any regional disruptions and allows GCCs to support their parent organisations more effectively,” said Prakriti Jaiswal, Partner, JSA Advocates & Solicitors.

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