Global capability center

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A global capability center (GCC) is an offshore or nearshore entity established by a multinational corporation (MNC) to take advantage of lower costs or human or technological resources available in other geographies. GCC functions can include back-office operations, knowledge management, IT support, engineering, and research and development. [1] [2]

GCCs are commonly located in India, which was home to 1,700 GCCs employing as of 2025 1.9 million people in cities like Bengaluru, Chennai and Hyderabad; their numbers were projected to reach up to 2,200 by 2030. Their initial growth in India was based on India's lower cost structure, but GCCs have added more advanced functions and value beyond the cost arbitrage for MNCs. [1] With higher U.S. fees imposed in 2025 on H-1B visas used by Indian technology workers, expanding GCC capabilities was a strategy that Indian IT firms could use to continue to serve MNCs. [3]

References

  1. 1 2 Jha, Srivardhini K.; Seth, Anilesh (2025). "Global Capability Centres: Emerging Opportunities and Challenges". IIMB Management Review. 37 (3) 100595. Elsevier BV. doi:10.1016/j.iimb.2025.100595. ISSN   0970-3896.
  2. ↑ Jesuthasan, Ravin (January 1, 1970). "Want AI-Driven Productivity? Redesign Work". MIT Sloan Management Review. Retrieved January 9, 2026.
  3. ↑ Chau, Jason (September 22, 2025). "Indian Tech Stocks Fall as New U.S. Visa Rules Weigh". The Wall Street Journal. Retrieved January 9, 2026.
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