KPMG Partner & India GCC leader breaks down surprising trends & untapped GCC opportunities

• Hi, I’m Shalini Pillay, India Leader – Global Capability Centres at KPMG India.
• I’ve had a front-row seat to India’s incredible GCC evolution.
  
• India is the “GCC Capital of the World” —with over 1,700 centres today and projections to 2400 by 2030! 
• What’s fueling this unstoppable growth? Surprising trends shaping the future of GCCs? Why India remains the ultimate destination for global giants?

My journey has been anything but linear!

In 1993 I completed my engineering and started my career with Arthur Andersen.

I soon realized I needed to deepen my understanding of business – I felt a CA would give me a broader perspective and add credibility to my consulting work. And it did.

In 2002, I joined KPMG India, and over the years, I took on multiple roles—Head of People, Performance & Culture and Office Managing Partner for Bangalore.

But the defining moment came in 2019 when I was appointed as the India Partner and Leader for GCCs.

Since then, I’ve been spearheading KPMG’s growth in the GCC space, helping global organizations evaluate, set up, and optimize their GCCs in India.

Additionally, I serve on the board of KPMG Global Services (KGS), which gives me an insider’s perspective on how KPMG’s offshore model works.

How KPMG supports organizations exploring GCCs in India?

We engage with global organizations across the entire lifecycle—from initial exploration to scaling and beyond.

Here’s how we add value at different stages:

Model Evaluation: We help organizations:

• understand the difference between insourcing and outsourcing
• weigh the merits of the GCC model versus third-party providers
• and identify the best hybrid model that suits their business

Once they decide to establish a GCC, we guide them through setting up, scaling, and building a strong foundation.

For existing GCCs, we revisit their strategy, refine their operating model, and identify tweaks that can take them to the next level. We help them map out a future-ready roadmap.

We work extensively across the tech spectrum—helping GCCs digitize, embed cutting-edge technology, and set up deep-tech Centers of Excellence (COEs).

Risk advisory and governance support is another key focus area, ensuring that GCCs operate efficiently and securely.

Preparing for the future workforce is critical, and we work with GCCs to build sustainable, agile talent models.

Tax implications are embedded throughout the GCC journey, and we provide the advisory support needed to navigate this complex space.

Essentially, KPMG brings its full-service expertise—strategy, technology, risk, workforce, and tax—to help GCCs succeed at every stage of their journey.

Why are global companies rushing to set up GCCs in India?

Although there is a buzz around GCCs, GCC is not a new concept! 

Some of the earliest GCCs were set up 20-25 years ago! 

But at that time, it was largely about IT-enabled services, NASSCOM even coined the term ITES (IT & IT-enabled services) to describe this space.

The idea was simple: any process that could be digitized and done remotely found its way to India.

Now what has contributed to the rise in GCCs being set up in India? Several factors and it’s hard to pinpoint just one.

Technology’s growing impact

In those early days, the focus was on standardized functions that could be automated or offshored efficiently. They were

• Finance
• HR
• IT

However over time, as technology began influencing core business processes, the scope of what could be done remotely expanded!

GCCs driving revenue, not just cutting costs!

If you look at the whole GCC model today, it’s no longer just about improving the bottom line and increasing profitability. The focus has shifted!

Top-line growth is the new priority!

GCCs are asking, “What else can we do in India to directly impact our revenue?” And the answers are exciting:

• Customer Experience Processes – Better CX driven from India is enhancing customer retention and satisfaction.

• Core Product Innovation – Game-changing products and solutions are being designed and built out of India.

• Advanced Data Analytics – GCCs are mining and analyzing data to unlock revenue potential in ways that were unimaginable a few years ago.

With this focus on revenue enhancement, it’s no longer just about support functions—GCCs now own core business processes.

GCCs in India aren’t just saving costs anymore—they’re driving top-line growth and becoming critical to global business strategies.

COVID-19

The pandemic proved that businesses could not only survive but thrive remotely. This was a huge eye-opener, demonstrating that critical work could be delivered seamlessly from offshore locations.

The pace of global technology adoption skyrocketed as organizations scrambled to leverage tech for business continuity.

So, in essence, COVID-19 fast-tracked the adoption of the GCC model! 

Talent availability and language capabilities

India offers in terms of scale, spread, and depth of talent—especially tech talent.

I truly believe that’s unparalleled compared to any other location.

GCC policies & Viksit Bharat 2047 Vision

GCCs are now recognized as a key pillar in achieving that goal.

Also read: GCC Market Size In India To Exceed US$100 bn By 2030: Why India Is A Preferred Destination

What kind of organisations are setting up GCCs in India?

Interestingly, most organizations that set up their GCCs in India have already been leveraging India through outsourced third-party models.

As they advanced on the digital maturity curve, they realized the merit of building core tech capabilities in India under the GCC model rather than relying solely on third-party providers.

Increasing concerns about data privacy and compliance have encouraged organizations to bring sensitive processes in-house to gain better control and ensure long-term strategic depth.

While many organizations are building their capabilities, they’re also collaborating with ecosystem partners to create hybrid models that give them the best of both worlds.

FOMO in the GCC Space: Are late entrants feeling the heat?

Absolutely!

We get calls from clients saying,

“Our closest competitors are already in India—are we too late to the party?”

They want to know:

• Where do our competitors stand?
• What models are they adopting?
• What competitive advantages are they gaining?

“This heightened awareness is pushing even the late entrants to explore India aggressively.”

Typical timeline for establishing a GCC in India?

A GCC can be operational in as little as six months!

Of course, for complex organizations where decision-making takes longer, it can take more time before things get off the ground.

And it brings me to an important theme on global sponsorship and the vision for why they’re setting up the centre.

The sponsorship and the keenness in many ways also set not just the tone but the pace at which you will go about setting it up.

Also read: India’s GCC revenue $64.6 Billion Up By 40% – Rising opportunities Tax Firms

Have your clients experienced upsides from building their GCCs?

Of course yes!

Organizations that have set up GCCs in India have built a strong operational backbone, allowing them to:

• Seamlessly integrate new acquisitions
• Expand their global reach
• Drive tech adoption faster and roll out new platforms more efficiently.

This has resulted in:

• Significant cost savings
• Simultaneously driving innovation
• Improving the top line for their parent organizations

India remains the ultimate destination for global giants? 

While Eastern Europe and Southeast Asia are compelling for certain niche functions, India remains the undisputed leader for large-scale, tech-driven operations.

India is second to none, here is why:

• Vast Talent Pool: Deep combination of technical and functional expertise.

• Mature Ecosystem: India has a high GCC maturity index with a proven track record of success.

• Strategic Hub for Innovation: India is no longer a cost center but a center of excellence driving digital transformation.

Also read: How BFSI GCCs are driving growth in India by becoming a $20-billion business

Which countries have the most GCCs in India?

US-Based Companies: Dominating with around 60% of GCCs in India.

Growing Interest from Other Regions:

• Europe
• UK
• Australia
• Japan – Significant growth in interest!
• Middle East

Even traditionally slower adopters are now waking up to the potential of the GCC model and taking a closer look at India.

Cost of talent rising significantly in tier-1 cities?

Yes, talent costs are on the rise!

However, rising talent costs are marginal compared to the value derived from India’s ecosystem, innovation, and scalability.

Tier-2/3 Cities on the GCC Map: Can they compete?

There’s a national push for GCCs.

Many Indian states introduced progressive policies to attract GCCs to tier-2/3 cities and how they can visibly get themselves on the map as a GCC destination?

• Gujarat: Launched an aggressive IT/ITeS Policy offering incentives, infrastructure support, and tax benefits to attract GCCs.
• Telangana: Introduced the GCC Policy Framework with a vision to establish Hyderabad as a preferred GCC destination.
• Maharashtra: Rolled out a GCC Policy Blueprint focused on incentivizing innovation centres and CoEs (Centers of Excellence) in Pune and Mumbai
• Kerala 

But here’s the catch—To fuel GCC growth, Tier-2 hubs need to focus on

• Emerging tech areas
• Skilled tech talent pipeline (not just about any talent!)
• The ecosystem (infrastructure) needs to be solid and future-ready to attract global players

Tier-2 cities have the potential to attract new entrants—but only if they get the tech, talent and ecosystem mix right!

Do GCCs continue to prefer Bangalore? 

Policy, cost differentials, or other incentives—matter.

Of course, you also need:

• Real estate
• Infrastructure
• Global connectivity

But, fundamentally, the GCC model is premised on:

• Technology
• Talent

If you don’t have the right tech ecosystem and talent funnel to fuel this model, those advantages won’t mean much.

Despite rising talent costs and a few concerns – Bangalore remains the top choice due to:

• Scale and Depth of Tech Talent – unmatched in India.

• Established Ecosystem – decades of focus on building a thriving tech ecosystem.

With GCCs setting up in tier-2/3 cities, do you see talent migration?

Bangalore is the GCC & Tech Capital of India; the talent pool here consists of professionals who migrated from smaller cities.

Yes, there’s potential to attract them back home if similar opportunities are created; more on the lines of a ‘Gharwapsi’ opportunity.

However, this shift will take time because large cities still have an edge in terms of infrastructure and career growth.

There’s some talent moving from Mumbai to Gujarat due to proximity, Bangalore continues to retain its talent because it offers better career opportunities, a strong tech ecosystem, and a vibrant infrastructure.

AI impact on GCCs?

The way GCCs were structured 20 years ago, or even 10 years ago, is not how it’s done today.

It’s no longer about building large armies of people. Yes, it’s still a people-intensive business, but it’s far more deliberate.

In my view, it will remain people-centric—just less people-intensive.

The second point I would highlight is that while everyone is talking about AI and automation taking over, there’s still a long way to go before this transformation happens at scale.

Many organizations are still struggling with fundamental building blocks—be it ERP platforms, data structures, or even basic data cleansing. 

The core plumbing (ERP platforms, data structures, and governance) needs to be in place before AI can drive real impact. And that’s going to take time.

Trump’s impact on India’s GCC market?

While political shifts may cause temporary ripples, the long-term trajectory is firmly in India’s favour.

Why? India’s scale, talent, and tech leadership remain unmatched.

We’re seeing a lot of interest and a growing number of players coming in because the fundamentals don’t change.

What is the future of GCCs in India?

In the next three to five years, more players will enter the space.

But it’s not just about new entrants…Organizations that set up GCCs 20 years ago are now re-evaluating their models. They’re asking:

• Is our model still fit for purpose?
• Should we tweak our operating model?
• Are we using the best technology?

The avatar of GCCs will keep evolving, and I am confident we will continue to see a lot of action in this space.