Geopolitical developments in West Asia could reshape investment decisions for global companies looking to expand their Global Capability Centres (GCCs). Industry experts believe that if expansion in the region slows due to tensions, India may see additional investment interest.
India already stands as the world’s largest GCC hub, hosting over 1,850 centres and employing nearly 2 million professionals. The sector currently generates about $64–65 billion in annual revenue.
In comparison, the West Asia capability centre market was valued at around $4.2 billion in 2024 and is projected to reach nearly $24.7 billion by 2032, according to TeamLease Digital. Growth in the region is largely driven by government-led digital transformation programmes and economic diversification strategies.
Within the region, the United Arab Emirates accounts for about 27.6% of the West Asia and Africa GCC market. The country’s business-friendly free zones and strong global trade connectivity continue to attract multinational firms.
“If expansion plans in West Asia slow down due to regional tensions, India’s mature ecosystem, deep talent pool, and proven delivery capabilities will naturally attract a share of that investment,” said Neeti Sharma.
Experts note that geopolitical uncertainty often makes companies reassess the pace, scale, and location of new investments. In such situations, India could receive incremental interest because it already has a well-established GCC ecosystem.
However, global companies rarely shift operations completely from one location to another. According to Jaspreet Singh, most multinational firms prefer a diversified location strategy, meaning any advantage for India is likely to appear gradually rather than immediately.
India’s strength lies in its large talent base, cost advantages, and mature technology ecosystem. The country hosts around 55% of the world’s GCCs, and the sector is expanding at roughly 10% CAGR, moving toward a $110 billion market.
India also produces over 1.5 million engineering graduates every year, creating a steady supply of talent in AI, cloud computing, cybersecurity, and data engineering. Operating costs in India are estimated to be 30–40% lower than many global markets, further strengthening its position as a preferred GCC destination.
While West Asia has a smaller local talent pool, companies are still drawn to the region for its strategic location, strong infrastructure, and business-friendly policies, including tax incentives and free zones. These advantages make countries such as the Saudi Arabia and the UAE attractive for regional headquarters and market-facing operations serving Europe, Asia, and Africa, Sharma added.
At the same time, Mohammed Faraz Khan said the current conflict in West Asia has not yet triggered major structural changes in GCC strategies.
“The region is still regarded as a well-developed business environment with strong infrastructure and established security frameworks. Currently, there is no evidence of large-scale exits or abrupt investment reversals,” he said.
Most organisations already operate with robust business continuity plans, and because many GCC functions are digitally enabled and globally distributed, operations remain stable. Companies are mainly reviewing risk exposure and expansion timelines, rather than shifting their global capability footprint.
Looking ahead, Singh noted that companies are likely to adopt a multi-geography approach to balance risk, remain close to markets, and access diverse talent pools.
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