The old outsourcing model made sense when cost-cutting was the only goal. But now, engineering speed, IP ownership, and AI innovation are non-negotiable. That’s why US companies are looking to set up AI-first Global Capability Centers (GCCs) in India, not just to outsource, but to build and scale smarter. With India's GCC market projected to grow to $110 billion with 2400 centers by 2030, the nation has become a powerhouse of innovation.
Source: Ernst and Young
India’s state-of-the-art GCCs offer control that traditional vendors can’t. They give enterprises direct oversight of teams, processes, tools, and outcomes. In addition, they ensure intellectual property is protected and compliance is embedded, guaranteeing a faster pace and greater competitive advantage.
India’s GCCs have become centers of innovation, not just execution. The ecosystem is now deep: over 1,800 centers employing more than 1.9 million professionals. These teams aren’t back-office; they’re product designers, AI engineers, IoT architects, and data scientists. According to a recent report, GenAI and related skills see the highest growth at 32% in Indian GCCs.
Many US-based companies are turning to Indian GCCs to deploy generative models to enhance customer experience, speed testing, and automate complex workflows. AI is pivotal in accelerating GCCs' maturity, with more than 90% of leading GCCs launching or expanding AI-focused centres of excellence over the last year and a half.
These centres are no longer limited to experimental projects; they are now deeply embedded in operational workflows, unlocking new efficiencies and enabling enterprise-wide innovation. So, what makes India such a sought-after destination? Here are some reasons:
GCCs in India aren’t just replicating what works elsewhere. They’re creating solutions that get scaled back to the business. They are building for local complexity, then adapting it for global markets. Whether you want to develop IoT systems and transform them into fleet analytics platforms in the US or establish an AI-based testing automation center that can run across global product teams, Indian GCCs offer all this and more.
However, GCCs are not plug-and-play. They require the right partner, governance model, talent strategy, and tech stack. When done right, they can transform any business. If done wrong, they become cost centers with no agility.
At Gadgeon, we help enterprises build and run AI-first capability centers in India, from IoT-enabled innovative systems to AI-driven healthcare and industrial platforms. Whether through Build-Operate-Transfer models or embedded product teams, we prioritize ownership, speed, and scalability.
If you still view India as an outsourcing hub, you’re missing the point. GCCs here now drive strategy, build platforms, and shape IP. They reduce risk, accelerate time to market, and give control back to the enterprise.
The best US companies already know this. They’re not outsourcing; they’re building, in India, with intention.
An AI-first GCC is a company-owned center focusing on advanced functions like AI/ML, IoT, and product engineering, rather than traditional support or outsourced services.
US firms seek greater control over talent, IP, and innovation. Indian GCCs enable faster product development, reduce vendor dependency, and allow scalable, in-house capabilities.
GCCs allow AI and IoT teams to work closely with product and engineering functions, speeding up prototyping, integration, and testing, without external delays or vendor bottlenecks.
