The rise of Global Competence Centres (GCCs) in India comes at a time when the country’s largest IT services industry is witnessing a major transformation. As leading technology corporations face cost cuts, AI-led automation demands and a slowdown in mass hiring, GCCs are emerging as a strategic solution to drive growth and technological innovation.

Government Support

In her Budget speech, Finance Minister Nirmala Sitharaman underscored her commitment to supporting the growth of GCCs in the country by proposing a “national framework” to encourage the expansion of these centres to Tier II cities.

Government support does not stop at the central level. State governments are also actively implementing policies to attract GCCs. Karnataka, one of India's leading tech hubs, has come up with a strategy to encourage global corporations to consider cities like Mysuru and Mangaluru as destinations for around 500 new GCCs. The state government's target is to create 350,000 jobs over the next five years, with the expectation that GCC development will play a central role in this plan.

Investing in talent development

Along with the GCC expansion, India is also stepping up training and capacity building for its workforce. HR experts say this year's budget proposals reflect the government's efforts to promote the entire talent "value chain" - from primary education to high-tech research.

Sumit Kumar, Chief Strategy Officer, Teamlease, one of India’s leading staffing firms, said that this year’s budget has a strong emphasis on education and digital empowerment, ensuring that India’s talent pool is built from the ground up.

A series of key initiatives were announced to develop the tech ecosystem:

- Setting up three AI centres of excellence with an investment of ₹500 crore
- Launching 50,000 Atal Tinkering Labs – innovation spaces for students
- Adding 6,500 seats at Indian Institutes of Technology (IITs)
- A ₹20,000 crore deep tech fund to support research and development

These policies will not only provide high-quality talent to the GCC but also open up growth opportunities for India’s emerging tech startups.

The Future of the GCC Ecosystem in India

With strong support from the government and local authorities, combined with an increasingly well-educated tech talent pool, India is creating an ideal ecosystem for the growth of the GCC. Not only does it help global corporations optimize their operations and scale, but it also plays a key role in boosting India’s digital economy, moving the country closer to becoming a global tech hub.