Moving beyond the traditional image of sprawling offices and vast workforces, a new wave of ‘nano GCCs’ is fast emerging as the agile, innovation-led centres often located in India’s tier 2 and 3 cities.
Simultaneously, the rise of captive centres for medium-sized enterprises is also shaping the ecosystem. These firms now account for nearly 50 per cent of India’s total GCC landscape. Unlike their larger counterparts, mid-market organisations typically do not have expansive in-house R&D operations.
Instead, they are turning to India’s deep and diverse tech talent pool to drive specific innovation. As per ANSR, in 2024, mid-market GCCs accounted for nearly 50% of India’s total GCC ecosystem and employed more than 220,000 professionals across India.
By 2026, over 120 new mid-market GCCs are expected to be established in India, reflecting a strong demand from mid-sized enterprises looking to leverage India’s capabilities for digital transformation and global service delivery.
According to data accessed from Zinnov, Bengaluru now hosts over 34% of the country’s GCCs, which is particularly significant for mid-sized global companies looking to access India’s vast tech ecosystem. These centres are generally established by firms with global revenues ranging from $100 million to $1 billion.
Turning to India’s Deep-Tech Market
“Tech-driven innovation, particularly in AI, is a key factor fueling the rise of mid-market GCCs,” Namita Adavi, partner – GCCs at Zinnov, told AIM.
Rather than focusing on large-scale outsourcing, these firms use their Indian GCCs to engage in high-value, specialised work. The appeal lies not just in cost-effectiveness, but in the ability to accelerate innovation, improve efficiency, and differentiate in a rapidly evolving global market.
According to an Inductus report, over 70% of mid-sized corporations view their GCCs in India as crucial to advancing their strategic innovation agendas. Inductus further defines such mid-sized GCCs as often operating with leaner teams consisting of 250-650 full-time equivalent (FTEs) across specialised domains, balancing scale with agility.
Alouk Kumar, founder & CEO at Inductus Group told AIM that a mid-sized GCC is not just “smaller in size”, it’s sharper in intent. It plays a pivotal role in accelerating digital transformation, innovation, and resilience, especially for mid-market and high-growth global enterprises.
Facilitating this is India’s growing network of AI centres of excellence, deep-tech startups, and specialised service providers that offer the perfect environment for mid-market firms.
Karnataka has a bold vision of establishing 21 CoEs encompassing diverse sectors from artificial intelligence to deep-tech. Currently, 14 of them are already up and running, and seven are in the works. These centres are tied to some of the state’s best universities and top industry groups, making them hubs for cutting-edge research and game-changing innovations.
Adavi further commented that agile operational models, faster decision-making, and a flexible workforce structure enable these GCCs to adapt quickly and remain competitive.
Talent is Key
Talent acquisition remains a key focus area, with mid-market GCCs adopting a strategic and differentiated approach to attract top-tier professionals. These companies are tapping into specialised talent across AI, cloud, cybersecurity, and engineering, including professionals based in tier-2 and tier-3 cities.
They adopt agile workforce models that blend full-time employees, gig workers, and service provider partnerships to maintain flexibility and responsiveness. To future-proof their workforce, they invest in upskilling and reskilling through collaborations with universities, edtech platforms, and industry experts.
Additionally, by offering competitive compensation and clear growth opportunities, they position themselves as attractive destinations for impactful, global work from day one.
As per the TeamLease Digital report, by 2025, India is expected to host 1,900 GCCs, employing over 2 million people, with salaries projected to be 12% to 20% higher than in IT services and non-tech sectors.
The Karnataka GCC Policy
The Karnataka GCC Policy 2024-2029 aims to add 500 new centres and create 350,000 jobs by 2029. This will be done by streamlining regulatory processes, offering financial incentives, and nurturing a robust talent pipeline.
“We are now very keenly focusing on tier 2 companies that are not so large, the mid-sized companies, which are in different geographies of the world,” Ekroop Caur, secretary, electronics, IT, BT and S&T, GoK, said in an exclusive interview with AIM.
She further mentioned that these CoEs are also building flexibility into its curricula. They offer several programs with industry-defined curriculum.
Last year, they set up a skill advisory council under the leadership of the IT and skill development ministers, consisting of over 20 industry leaders. These leaders are providing guidance on industry requirements and defining specific skill sets needed in the workforce.
The Karnataka government has introduced several policies to support mid-market GCC growth.
One such initiative is the Nipuna Karnataka Skilling Scheme, backed by ₹300 crore in funding, which focuses on preparing the workforce for AI, cloud computing, and deep tech roles.
Adavi mentions that this initiative aligns closely with the needs of mid-market GCCs seeking skilled professionals without bearing the costs of extensive training.
Furthermore, Karnataka is also expanding opportunities beyond Bengaluru, with emerging innovation hubs in Mysuru, Mangaluru, Shivamogga, and Hubballi-Dharwad, offering cost advantages and access to untapped talent pools.
These cities are being developed as Global Innovation Districts (GIDs), providing a fertile ground for R&D and digital innovation.Crucially, the state offers partial capital expenditure grants for engineering, research and development ( ER&D) infrastructure and has established a dedicated unit to support GCCs with expedited approvals, skilling reimbursements, and internship incentives—ensuring that mid-sized companies can set up and scale with minimal friction.