A significant geopolitical and business realignment is underway as multinational corporations increasingly move their Global Capability Centers (GCCs) from Eastern Europe to India. This strategic shift, driven by geopolitical tensions, cost optimization, and India’s expanding tech expertise, is reshaping the global outsourcing landscape.
Table of Contents
Current GCC Migration Trends
| Factor | Eastern Europe | India |
|---|---|---|
| Current GCCs | Declining due to war impact | 1,580+ centers across 2,740 units |
| 2030 Projection | Uncertain stability | 2,550 GCCs worth $110 billion |
| Cost Advantage | Reduced competitiveness | 30-50% lower than home markets |
| Major Players | Relocating operations | SAP, IBM, Google, Deutsche Bank |
| Government Support | War-affected infrastructure | National framework for Tier-2/3 cities |
Why Companies Are Making the Switch
Companies including SAP, IBM, Google, Deutsche Bank and ArcelorMittal are repositioning India not just as a back office, but as a nerve centre for R&D, AI development and innovation. The Ukraine conflict has created operational uncertainties in Eastern Europe, making India an increasingly attractive alternative.
GCCs unlock access to world-class talent at 30–50% lower costs than home markets – an unbeatable combination in today’s climate. Unlike the first wave of GCCs that focused on IT and support functions, the current wave emphasizes strategic capabilities in AI, cybersecurity, and digital transformation.
India’s Strategic Advantages
India’s appeal goes beyond cost savings. In 2023, the country hosted over 1,580 GCCs operating across 2,740 units. Major tier-1 cities like Bengaluru, Hyderabad, and Delhi-NCR are leading this transformation, with 355+ GCCs including Wells Fargo, GE, and Carelon Global Solutions establishing operations.
The government is actively supporting this shift through Budget 2025 Announcement: A national framework will guide states to promote GCCs in Tier-2/3 cities like Coimbatore, Ahmedabad, and Kochi, focusing on talent development and infrastructure upgrades.
Long-term Market Impact
According to an HSBC report, India is set to host 2,550 GCCs worth $110 billion by 2030, representing massive growth potential. This shift isn’t just about moving operations – it’s about transforming India into a global innovation hub.
The trend reflects how companies are prioritizing stability, talent availability, and cost efficiency over geographical proximity, making India the clear winner in the global GCC race.
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FAQs
What’s driving MNCs to move GCCs from Eastern Europe to India?
Geopolitical instability from the Ukraine war, cost advantages, and India’s superior tech talent pool are key factors.
How many GCCs does India currently host compared to Eastern Europe?
India hosts over 1,580 GCCs with projections to reach 2,550 by 2030, while Eastern Europe faces declining numbers.
