Global Capability Centers (GCCs) in India are increasingly becoming vital breeding grounds for future global leaders, with a growing number of executives from these centers ascending to key leadership positions at their multinational parent companies. Over the past two years, more than ten executives from Indian GCCs have transitioned into global CXO roles, marking a significant shift in the function of these facilities from mere back-office operations to strategic hubs. These hubs now handle complex functions such as research and development (R&D).
India is home to approximately 1,750 GCCs, representing 17% of such facilities worldwide. In 2024, these centers employed around 1.9 million people and contributed $64.6 billion to the country's service exports, a growth of over 40%. Nasscom projects that exports from these centers will reach $100 billion by 2030, highlighting their increasing importance to multinational corporations. Accordingly, the number of executives in global leadership positions working out of Indian facilities is also on the rise. A Nasscom study forecasts that Indian GCCs will produce more than 30,000 global leaders by 2030, a significant increase from 5,000 in 2022.
Several examples illustrate this trend. Sumit Mitra, previously with Tesco's Bengaluru GCC, has moved to the UK to lead coaching responsibilities for five countries. Hari Vasudev, Walmart's chief technology officer for the US, previously held tech roles in India, and Tathagat Varma from Walmart India is now a global TechOps leader based in the US.
This evolution requires GCC leaders to provide strategic context to their global counterparts, fostering a holistic and equitable approach to culture, work standards, expectations, change management, and communication across the enterprise. The focus is on understanding the diverse needs of the workforce, including technical upskilling, work enablement, efficiency, effectiveness, and connectedness with the enterprise.
Several factors contribute to this phenomenon. Talent brand India has consistently delivered leadership talent to Fortune 500 companies globally, instilling confidence in leveraging Indian talent. Rebranding the sector in India and enabling a globally mobile workforce has provided returning talent with ample opportunities for growth. The availability of talent and leadership to deliver digital power has also accelerated the positioning of many GCCs.
GCCs have matured from cost arbitrage centers to Global Business Solutions Centers, aligning with the global vision and culture, integrating policies and processes, and building an effective value proposition. They have assumed strategic importance by adding value to business-critical processes as Global Business Solutions Centers. Sponsorship from leadership and consistent investment in developing a globally aligned workforce, culture, and talent have significantly elevated the profile of GCCs and their leaders. Functionally, some GCCs have brought forward cutting-edge innovation and research and development capabilities, developing a deep understanding of how these changes can deliver business impact.
However, the qualities that define GBS/GCC leadership and the path to promotion have become increasingly complex. While delivery and operational aspects remain crucial, stakeholder influence and soft skills are also essential. The role is constantly changing due to evolving business conditions and geopolitical factors. Organizations are seeking leaders who can understand and pace change at a level that the enterprise can digest. The best leaders understand how to bring the enterprise along while staying ahead of the curve.
Despite the growing importance of GCCs, succession planning within these organizations often lags behind that of headquarters or other complex CXO roles. There is a tendency to quickly look externally for leaders, which can create cultural and integration challenges. As GCC roles become more global and integrated, there will be a greater emphasis on internal leadership talent.
Moreover, the rise of AI is prompting a reevaluation of traditional C-suite skills. As technical skills are replaced by AI, there will be a growing demand for human-centric abilities to manage the shortcomings of automation and ensure success in the boardroom. New roles, such as chief human-AI collaboration officer, are emerging to focus on workforce augmentation and ensure that humans and AI systems complement each other for peak performance.
