Bengaluru accounts for 50% of India’s mid-market GCCs: Zinnov-KDEM

Bengaluru is emerging as the hub for mid-market global capability centres (GCCs) in India, housing about half of such units as of 31 March 2025. The growth is driven by talent availability, niche skills, Karnataka’s favourable policies, and strong educational institutions, according to a report by Zinnov in collaboration with the Karnataka government and the Karnataka Digital Economy Mission (KDEM).

The report states that Bengaluru hosts more than 230 mid-market GCCs, employing about 74,000 people. Mid-market GCCs are set up by mid-sized companies with annual revenues between $100 million and $1 billion.

“The rapid growth of GCCs in Karnataka is enabled by its strong ecosystem -- a deep pool of digital talent, start-ups that serve as idea laboratories, and leading universities,” said Nilesh Thakker, president of Zinnov.

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According to IT industry body NASSCOM, India has about 1,760 GCCs and expects the number to cross 2,000 in the next few years. More than 500 of these already have AI capabilities, up from just over 200 in 2023, backed by global AI charters.

While large GCCs, typically technology centres of US and European banks, dominate the landscape, smaller GCCs requiring only a few hundred employees have been on the rise in recent years. The report notes that smaller GCCs now account for about 27% of India’s total GCC ecosystem.

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US mid-market companies remain the largest contributors, accounting for 79% of such centres, followed by 5% from the UK. By sector, 67% are from software and internet firms, while 10% are from telecom.

The report added that mid-market centres in Bengaluru are expanding at 1.4 times the national average, supported by focused mandates, lean governance, and tighter alignment with headquarters. About 48% of India’s engineering talent for these centres is based in Karnataka -- nearly 1.7 times the national average.

“The government of Karnataka remains unwavering in its commitment to enabling this growth. The state launched India’s first-of-its-kind GCC policy, alongside the visionary ‘Beyond Bengaluru’ initiative, which aims to decentralise growth, improve ease of doing business, and foster innovation across emerging cities,” said Priyank Kharge, Karnataka’s minister for IT & biotechnology and rural development & panchayat raj.

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BV Naidu, chairman of the Karnataka Digital Economy Mission (KDEM), added that the state stands out as a strategic hub, particularly in the software and internet sector. “The fact that over 50% of mid-market GCCs in Karnataka have site leaders holding dual roles — combining GCC leadership with global or business unit responsibilities-- highlights the strategic value these centres bring,” he said.