India’s global capability centres (GCCs) are expected to grow value for their headquarters (HQs) at a weighted CAGR of 11-12% during FY25-29, according to PwC India. As per the report, during FY20-24, India GCCs generated value at a weighted average CAGR of 10-11% for their respective headquarters (HQs). Such compounding of value-growth has happened despite GCCs managing a relatively small part of their HQs global processes.  

The survey findings are based on interviews with close to 250 senior executives – covering GCCs and their HQs of both product and service-based companies. The aim was to examine the value contribution of GCCs and capture perspectives on the challenges faced by GCCs and their HQs in aligning with the larger strategic and operational goals.

Commenting on the opportunity for GCCs in India, Sanjeev Krishan, Chairperson, PwC in India, said, “In the context of India’s growth story, it is important for GCCs and their HQs to co-create a shared definition of value, invest in joint decisions, and build a culture of collaboration. GCCs must see complete alignment with their HQs – not as a one-time fix, but as a sustained leadership imperative.”

To maximise their potential in enhancing value creation, GCCs and HQs need to ensure alignment in areas such as resource allocation, performance measurement and governance, through more open communication on defining value and processes to achieve it, robust cross-functional collaboration, and shared recognition of success. Doing so has the potential to increase value generation growth of GCCs by an estimated weighted average CAGR of 3-4% over and above the 11-12% they are expected to achieve during FY25-29. This indicates that value generation by GCCs can go up to 14-15% for FY25-29 with complete GCC-HQ alignment.

Rajesh Ojha, Partner and GIC/GCC Market Segment Leader, PwC India said, “Strengthening GCC–HQ alignment requires intentional actions that go beyond delivery. Encouraging cross-functional collaboration, celebrating shared outcomes, and embedding a value-driven mindset across teams are critical steps. These actions not only foster greater trust and visibility with HQs but also enable GCCs to step up as extension of HQ and strategic partners delivering enterprise-wide impact.”

As per the report, between FY20-24, Indian GCCs evolved into cost-conscious innovators and multifunctional centres of excellence (CoEs) for their HQs. Further, GCCs are seeing a strategic elevation in the context of their HQs, as they become new business creators, new technology value incubators, strategic business partners, and ecosystem integrators.

The report also reveals that India will continue to be a premier destination for setting up GCCs, with global companies committed to maintaining their presence in the country. Less than 25% of business leaders are considering relocating their India GCC operations. Instead, they envision these centres leveraging AI and digital technologies to become global solutioning hubs, making GCCs an integral part of the global value chains.

Raghav Narsalay, Partner and Leader – Research and Insights Hub, PwC India says, “Indian GCCs are uniquely positioned to become engines of dynamic value creation. To accelerate this growth and make GCCs more competitive and investible, the national and state governments should make substantial investments in developing infrastructure that can be used for GCC set up, such as building GCC parks and developing Tier 2 locations to become mature GCC hubs.”