SAP Labs India Pvt. Global Capability Center has evolved far beyond technical support, but its growth poses challenges for both multinational companies and Indian cities.
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Global capability centers (GCCs) accounted for 38% of India’s office space demand in the third quarter, real estate services firm CBRE’s Anshuman Magazine reported over coffee at a cafe surrounded by Singapore’s skyline.
“Demand for domestic office space is at an all-time high,” said Magazine, who is responsible for India, Southeast Asia and the Middle East and Africa markets.
He added that demand for the GCC (offshore offices where multinational companies operate operations ranging from finance to IT) will continue. Three months ago, his company hired someone in the US who was solely focused on helping clients set up GCCs in India.
Just this week, US mutual fund giant Vanguard opened a new GCC in Hyderabad. The company’s India operations are headed by Venkatesh Natarajan, who moved to Hyderabad after spending nearly 30 years in the United States. Prior to Vanguard, Mr. Natarajan held leadership roles at companies including: walmart, Lowe’s Home Improvement and Crate Retail.
he is not alone. Many global companies are now hiring or relocating leadership roles to their GCC offices in India.
Ankur Mittal is chief technology officer and managing director of Lowe’s India, while Navneet Kapoor is executive vice president and chief technology officer of Danish shipping giant AP Moller-Maersk. Both are based in Bengaluru.
In its early form, GCC was a remote office that handled finance, procurement, and IT services for global companies seeking to reduce operating costs. These “back offices” are now not just supporting transformation, they are driving it.
Pioneer of new enterprises in India
Many of these centers lead efforts in product engineering, AI model development, and automation strategy, increasingly co-owning innovation and intellectual property along the way.
“The main difference between a traditional back office and GCC is ownership,” says Nitesh Bansal, managing director at R Systems, a US-based consulting firm that advises companies on GCC strategies. As companies move R&D and engineering operations to India, they are looking to hire for leadership roles with greater responsibility, he added.
Experts say many multinational companies have adopted a dual leadership model, where the heads of global operations in India share strategy and product results with those at headquarters.
“This is less about delegation and more about shared responsibility,” said Naveen Gattu, head of global growth at GCC consulting firm Strive. The talent profile within the GCC is “certainly changing”, he added.
Five years ago, GCC hires were primarily in engineering, analytical, and operational roles. There is now a clear pivot towards senior and strategic roles.
“GCC is currently hiring vice-president-level and even global heads to reside in India and Southeast Asia and manage company-wide missions,” Gattu said.
Leadership roles in Bengaluru have more than doubled from 21 in 2024 to 44 so far this year, according to GCC consultancy ANSR. In Hyderabad, the surge has been even steeper, increasing from eight leadership roles in 2024 to 42 to date. Similar trends can be seen in other Indian cities across the GCC.
“The GCC has evolved from a delivery center to a leadership hub that shapes corporate strategy,” said Lalit Ahuja, founder and CEO of ANSR, adding, “Some of the leaders who grew up within the GCC went on to go global (executive roles) while continuing to operate from India.”
According to a July report published by the Confederation of Indian Industry and Deloitte, India currently has over 1,800 GCCs, nearly half of the world’s total. Three new GCCs are established every two weeks in India, and 60% of existing centers are planning expansion.
Today, GCC manages key functions that directly impact decision-making, revenue, and customer experience.
“To manage this complexity, companies need leaders who can think globally and execute locally. India’s talent pool is uniquely suited to that,” ANSR’s Ahuja said.
—CNBC’s Arjun Kharpal contributed to this report.
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Deborah Elms of the Hinrich Foundation said it was unlikely that India would accept a trade deal that greatly favors the United States, unlike the deals President Trump has struck with other Asian countries. He noted that India’s priority is to secure a “win-win” outcome rather than a “win-lose” agreement dictated by the US government.
Saurabh Mukherja, founder and CIO of Marcellus Investment Managers, said AI will impact Indian businesses and the labor market.
Kenneth Ho, chief Asia credit strategist at Goldman Sachs, sees growth potential in India’s corporate bond market. He also shared important lessons that India can learn from China’s credit boom.
need to know
Google plans to offer Gemini AI services for free to over 500 million Reliance Jio users in India. The US tech giant has signed an agreement with Reliance Intelligence, a joint venture between Reliance Industries and Meta, to offer Google’s AI Pro plans, including Gemini 2.5 Pro, free of charge to Jio subscribers for 18 months.
India is currently subject to higher US tariffs than China. The easing of tensions between China and the US after their leaders met in South Korea last Thursday stands in stark contrast to the cooling in relations between Washington and New Delhi.
Adani Enterprises will raise $2.8 billion through rights issue. The company had raised Rs 210 billion in 2023, but the money was returned to investors after US-based short seller Hindenburg Research accused the group of corporate governance issues and stock price manipulation.
This week’s quote
We are willing to acknowledge that AI cannibalizes revenue. But on the other hand, it will bring more opportunities for us. When our clients want us to reduce their operational costs, AI can be a great way to help them do that. This is helping us close bigger deals and create change.
— Ramesh Gopalan, Group CEO & MD, Sagility
at the market
The Nifty 50 was set to fall 1.3% this week, marking the second consecutive week of declines. The index has risen more than 8% this year.
The benchmark 10-year Indian government bond yield remained flat at 6.512, declining for the fourth straight session.
very soon
November 7: Fintech company Pine Labs launches IPO.
November 11-12: External Affairs Minister S. Jaishankar attends G7 meeting in Canada
November 12: October CPI inflation data
November 14: October wholesale inflation data
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Correction: This story has been updated to correct the spelling of Lalit Ahuja.
