28 March 2025, Hyderabad: India’s Global Capability Centre (GCC) sector is on the brink of a significant expansion, driven predominantly by the rising interest of mid-market firms. Industry estimates suggest that over 120 new mid-market GCCs will be established in the country over the next two years, with sector revenues projected to grow by 15-20% between 2024 and 2026.
According to a recent study conducted by consulting firm ANSR, this emerging trend is set to reshape India’s GCC landscape, which currently boasts around 1,760 centres. Of these, nearly 45% belong to mid-market companies—defined as those with annual revenues ranging from $100 million to $3 billion. These firms are expected to spearhead the next wave of GCC growth in India, generating new employment opportunities and contributing substantially to the economy.
Employment Boost and Revenue Growth
The mid-market GCCs already employ approximately 220,000 people. This number is likely to swell as companies increasingly tap into India’s rich talent pool, robust technology ecosystem, and cost-effective operational model. Industry estimates indicate that the number of mid-market GCCs will grow from 865 in 2024 to approximately 1,200 by 2026, accounting for nearly 72% of the projected 1,200 to 1,250 new GCCs expected in the next five years.
Revenue from the mid-market GCC segment is anticipated to rise from $6.5 billion in 2024 to $7.5-7.8 billion by 2026, reflecting a compounded annual growth rate of 15-20%.
A Strategic Shift
Unlike large corporations with established GCC operations, mid and small-sized firms are now recognizing the strategic benefits of building and managing their own centres in India. Many of these companies are adopting hybrid models such as build-operate-transfer (BOT) frameworks to scale their operations quickly and efficiently.
Industry experts point to India’s well-developed GCC ecosystem, access to a large and skilled workforce, and favourable cost structures as key drivers behind this mid-market shift.
“Mid and small-sized companies are increasingly leveraging India’s GCC ecosystem, taking advantage of its talent pool, cost efficiencies, and mature startup ecosystem,” said Rohitashwa Aggarwal, partner at Everest Group, a leading research and advisory firm.
Market Dynamics
The growth trajectory of mid-market GCCs is supported by data from Zinnov, another prominent consulting firm. Zinnov’s research shows that the mid-market GCC segment has grown at a steady pace, contributing significantly to India’s standing as a global hub for capability centres. In 2023 alone, mid-market GCCs grew by 42% year-on-year, highlighting the sector’s resilience and strong fundamentals.
Everest Group further estimates that of the 1,200 to 1,250 new GCCs projected to be established in India over the next five years, almost 72% will belong to mid and small-sized firms. This marks a strategic departure from earlier years when the growth was largely driven by multinational giants with deep pockets and large operational budgets.
Industry Voices
Speaking on the trend, experts from NASSCOM and ANSR underscored the importance of mid-market GCCs in democratizing India’s technology and business services sector.
“The who’s who of global corporations have already set up GCCs in India. Now, the growth baton has passed to the mid-market and emerging firms who see India as a long-term strategic partner,” said an industry insider.
With increasing global demand for digital transformation, technology innovation, and scalable business operations, India’s mid-market GCCs are well-positioned to drive the next phase of growth.
Source: Annapurna Roy, The Economic Times
