Beyond the conventional perception of expansive offices and sizable workforces, a new generation of “nano GCCs” is quickly taking shape as the innovative, flexible hubs that are frequently found in India’s tier 2 and tier 3 cities.
The ecosystem is also being shaped concurrently by the growth of captive centers for medium-sized businesses. Currently, these companies make up almost half of India’s entire GCC market. Mid-market companies usually don’t have substantial internal R&D activities as their larger counterparts do.
To spur particular innovation, they are instead looking to India’s vast and varied digital talent pool. According to ANSR, mid-market GCCs employed over 220,000 professionals nationwide in 2024 and made up around 50% of India’s whole GCC ecosystem.
India is predicted to host more than 120 new mid-market GCCs by 2026, indicating a high demand from mid-sized businesses hoping to take use of India’s skills in digital transformation and international service delivery.
More than 34% of the nation’s GCCs are currently based in Bengaluru, according to data obtained from Zinnov. This is especially important for mid-sized international businesses hoping to tap into India’s extensive IT sector. These centers are often founded by companies that generate between $100 million and $1 billion in worldwide revenue.
Turning to India’s Deep-Tech Market
“Tech-driven innovation, particularly in AI, is a key factor fueling the rise of mid-market GCCs,” Namita Adavi, partner – GCCs at Zinnov, told AIM.
These companies employ their Indian GCCs for high-value, specialized work rather than concentrating on extensive outsourcing. The allure is not limited to cost-effectiveness; it also includes the potential to boost creativity, boost productivity, and stand out in a global market that is changing quickly.
More than 70% of mid-sized businesses believe that their GCCs in India are essential to achieving their strategic innovation goals, per an Inductus survey. According to Inductus, these mid-sized GCC companies often balance scale and agility by employing smaller teams with 250–650 full-time equivalents (FTEs) across specialized disciplines.
The founder and CEO of Inductus Group, Alouk Kumar, told AIM that a mid-sized GCC is more focused than merely “smaller in size.” It is essential for speeding up innovation, resilience, and digital transformation, particularly for mid-market and high-growth international businesses.
This is made possible by India’s expanding network of deep-tech startups, AI centers of excellence, and specialized service providers, which provide the ideal setting for mid-market businesses.
Karnataka’s ambitious plan calls for the creation of 21 CoEs in a variety of fields, from deep technology to artificial intelligence. At the moment, seven are being developed and fourteen are operational. These centers serve as hubs for cutting-edge research and game-changing inventions because of their connections to some of the state’s finest colleges and business associations.
Adavi said that these GCCs can swiftly change and maintain their competitiveness because to agile operating models, quicker decision-making, and a flexible staff structure.
Talent is Key
Talent acquisition is still a major priority, and mid-market GCC companies are using a unique and strategic strategy to draw in top talent. Experts in AI, cloud, cybersecurity, and engineering, especially those situated in tier-2 and tier-3 cities, are being tapped by these organizations.
In order to preserve flexibility and responsiveness, they use flexible workforce models that include full-time staff, gig labor, and service provider partnerships. They engage with universities, edtech platforms, and industry experts to invest in reskilling and upskilling their staff in order to prepare them for the future.
Additionally, they establish themselves as desirable locations for meaningful, international employment right away by providing competitive pay and obvious development prospects.
By 2025, India is anticipated to have 1,900 GCCs, employing over 2 million people, with wages that are 12% to 20% higher than those in non-tech and IT services industries, according to the TeamLease Digital research.
The Karnataka GCC Policy
By 2029, the Karnataka GCC Policy 2024-2029 seeks to add 350,000 employment and 500 new centers. Simplifying regulatory procedures, providing financial incentives, and fostering a strong talent pipeline will all help achieve this.
“We are now very keenly focusing on tier 2 companies that are not so large, the mid-sized companies, which are in different geographies of the world,” Ekroop Caur, secretary, electronics, IT, BT and S&T, GoK, said in an exclusive interview with AIM.
She added that these CoEs are also incorporating flexibility into their curricula, offering a number of programs with industry-defined curricula.
Last year, they established a skill advisory council with over 20 industry leaders, led by the ministers of IT and skill development, who are defining specific skill sets required in the workforce and offering guidance on industry requirements.
To encourage the expansion of the mid-market GCC, the Karnataka government has implemented a number of initiatives.
With ₹300 crore in financing, the Nipuna Karnataka Skilling Scheme is one such program that aims to prepare workers for deep tech, cloud computing, and artificial intelligence positions.
According to Adavi, this program is a great fit for mid-market GCC companies looking for qualified workers without having to pay for costly training.
With new innovation centers opening up in Mysuru, Mangaluru, Shivamogga, and Hubballi-Dharwad, Karnataka is now extending its chances outside of Bengaluru. These hubs provide access to untapped talent pools and cost benefits.
In order to foster research and development as well as digital innovation, these cities are being transformed into Global Innovation Districts (GIDs). Importantly, in order to facilitate the establishment and growth of mid-sized businesses, the state provides partial capital expenditure grants for engineering, research, and development (ER&D) infrastructure. Additionally, a specialized unit has been established to support GCCs with expedited approvals, skilling reimbursements, and internship incentives.
Also read: Viksit Workforce for a Viksit Bharat
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