Private equity (PE) firms are actively encouraging their portfolio companies to establish Global Capability Centres in India, aiming to tap into the country’s skilled workforce and cost-effective operations. This trend is seeing increasing momentum across sectors such as software, fintech, enterprise tech, and AI.
The move is being driven by the demand for faster scaling and improved operational efficiency, especially for companies at the growth stage. According to industry experts, India is emerging as a strategic location for tech and business operations, supported by its mature talent ecosystem and ability to deliver at scale.
Firms such as ChrysCapital, Warburg Pincus, TA Associates, and others are reportedly involved in pushing their portfolio companies to open these centres. This strategic decision allows businesses to expand R&D, engineering, and customer support capabilities while managing costs.
Experts believe that the success of early adopters in setting up Global Capability Centres has created a ripple effect. Companies now view this model not only as a cost arbitrage opportunity but also as a long-term strategy to build competitive advantage and resilience.
Startups and mid-sized firms, particularly those in the Series C and D funding stages, are finding this model highly beneficial. By leveraging India’s talent pool, companies can maintain high service quality while reducing the burden on their home market operations.
In addition to cost savings, companies benefit from improved business continuity, time-zone advantages, and access to specialised skills in areas such as product development, data science, cybersecurity, and enterprise tech. The shift also allows for quicker product innovation cycles and streamlined global delivery models.
Several firms have already begun the process of setting up or scaling their operations in cities such as Bengaluru, Hyderabad, and Pune, where talent availability and infrastructure are highly supportive.
As India strengthens its position as a preferred destination for global capability centres, private equity firms are playing a critical role in accelerating this transformation for their portfolio companies.
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