Synopsis
Nine out of ten global capability centres (GCCs) being set up in India today use external partners, a sharp reversal from just a few years ago when large multinationals built these centres on their own, industry experts said.The shift is reshaping a fast-growing market, with non-traditional players now jumping in alongside established specialists to get a share of the opportunity.
The change marks a clear break from the 1990s and early 2000s, when the do-it-yourself (DIY) model was far more common. Today, about 40% to 50% of new centres are being set up through assisted build-out models, while another 30 to 40% follow build-operate-transfer structures, according to Manoj Marwah, financial services GCC consulting leader at EY.
“Most new GCCs are being set up through assisted or partner-led models. The DIY market today is relatively small and limited to companies with strong India experience or those entering through acquisitions,” he said.
The entry of non-traditional players is adding to the momentum. CARE Ratings and Vestian Global have launched a joint venture, Operus, to offer end-to-end GCC services, signalling that the opportunity is drawing in firms well beyond the traditional IT services space.
Partner-led models are also compressing timelines and cutting costs, with centres being set up in 9-18 months and delivering savings of up to 30% as compared to Western markets, Marwah said. Many newer players, especially regional firms without a strong India presence, prefer partners to speed up entry and reduce risk, allowing them to try before they buy.
The financial stakes are also at a rise. Firms that get in early and win the initial advisory work are looking at $2 to 5 million before a company even makes its final decision. Once the decision is made, the design and build phase can bring in another $5 to 20 million. And if the centre grows, the returns keep coming. “If executed well, a 500-seat GCC can expand into a $5 to 10 million annuity opportunity as it scales,” Marwah added.
About 60 to 70% of new centres are now being set up with partners, while 30 to 40% remain DIY, largely among large multinationals with established India presence, said Vikram Ahuja, co-founder of ANSR. “What’s changed is the nature of that partnership. Companies are no longer just outsourcing setup. They want a partner who can help them build a fully owned, integrated capability from day one, with complete transparency and control. What companies are not looking for is a managed services contract under the disguise of a GCC,” he said.
The competition, however, is now shifting beyond setup. “The real value is no longer in setup. It is in operation and scale. GCCs are becoming critical for AI-led work, and that requires a very different operating model,” Ahuja said. He added that while setup is getting commoditised, institutional knowledge built over hundreds of deployments is hard to replicate.
About 1,700 enterprises already operate GCCs in India, with more expected to follow. “While GCCs can be deflationary when clients shift work in-house, the overall trend remains net positive. Enablement revenues may be low, but it is a strategic way to build long-term relationships,” said Pareekh Jain, CEO of EIIRTrend.
As more global companies come to India, the focus is shifting towards the speed of setting up these centres. Experts say it is now about who decides how these centres are built, scaled, and used over the long term.
