Mid-market firms are driving a new wave of growth in India’s Global Capability Centres (GCC) sector.
With revenues projected to rise 15-20% between 2024 and 2026, the sector is experiencing an influx of small and mid-sized companies seeking flexible, cost-effective solutions. These firms are primarily coming from the US, Europe, and the Middle East, eager to tap into India’s evolving business ecosystem.
Currently, about 45% of India’s 1,760 GCCs come from mid-market companies, which are defined by annual revenues between $100 million and $5 billion. These firms together employ roughly 220,000 people. According to industry projections, over 120 new mid-market GCCs will be set up in the country by the end of next year, with revenues expected to rise from $6.5 billion in 2024 to between $7.5 billion and $7.8 billion by 2026.
This growth trajectory is remarkable. In 2023, mid-market firms accounted for 21% of new GCCs in India, a number that surged to 42% in 2024. Research suggests that 75% of the 1,200-1,250 new GCCs set to be established over the next five years will be driven by smaller companies.
As one industry expert pointed out, “The who’s who (large firms) are already here… The smaller ones are the ones which will continue to come because they would not have explored the country and its advantages.” India’s evolving talent pool, cost efficiencies, and maturing service delivery models are key reasons why mid- and small-sized firms are increasingly opting for the GCC model.
Unlike large corporations, which often have the resources and expertise to run their own GCCs independently, mid-market firms are turning to alternative models like build-operate-transfer and partner-operated solutions. These models minimize risk and costs while providing the flexibility to scale. The uptake of the build-operate-transfer model has doubled in recent years and is expected to continue growing.
One consulting firm reports receiving an average of two inquiries per day from global mid-sized companies looking to set up GCCs in India. These firms, according to experts, are choosing models that reduce capital expenditure and compliance burdens, while still maintaining control over their proprietary processes and intellectual property. Additionally, these models make multi-city expansions far easier.
India’s GCC landscape is evolving, and mid-market firms are playing a crucial role in this transformation. As they continue to explore and invest in this sector, India’s future as a global business hub is becoming ever more promising.
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