India, the world’s next digital operations powerhouse- Outlook 2026

Authored by Sunil Kalra, Partner, Risk Consulting and Forensics

Key trends to watch out for GCCs in 2026

• India to become the global headquarters for AI-enabled operations
  In 2026, GCCs will become the main centres where global firms design, test, and operate AI-driven processes. From automated finance functions to AI-assisted software development and digital supply chains, India’s GCCs will anchor enterprise-wide AI adoption.
• Deep engineering and product ownership shift to India
  Firms operating in the automotive, aerospace, healthcare, BFSI, and tech space are giving Indian teams responsibility for full product life cycles including design, architecture, testing, release management, and customer feedback loops. India will be emerging as the “engineering brain” of many global enterprises.
• Indian cities to drive the next GCC growth wave
  Excessive costs and talent saturation in metros are pushing GCCs to cities like Coimbatore, Jaipur, Vadodara, Kochi, Bhubaneswar, and Chandigarh. These cities offer quality talent, lower attrition, and strong state incentives. Tier 2 cities will see more GCCs being set up in 2026.
• Cybersecurity and regulatory compliance to become core GCC pillars
  With increasing cyberattacks and stricter global data laws, multinational companies are turning their Indian GCCs into 24×7 security hubs. Privacy engineering, threat detection, cloud security, and compliance monitoring will be major growth areas in 2026.
• Shift from cost centres to business-impact hubs
  In 2026, the value of GCCs will be measured by business outcomes, customer satisfaction, product velocity, risk reduction not just cost savings. Enterprises increasingly look to India to improve quality, speed, and resilience. Cost arbitrage will not remain the sole motive for the world to look up to India.
   

Recommendation for GCCs

• Invest in deploying AI Tool at scale: Indian GCCs should invest aggressively in responsible AI frameworks, domain-focused AI skills, and strong data governance models. The advantage will lie in in deploying AI Tools at scale with security and compliance.
• Set up cross-functional squads & leadership development programs: Engineers, designers, product managers, and data scientists, service champions working together. Leadership development programs must help Indian teams to assume end-to-end ownership.
• Metro plus Tier 2 hub model: GCCs should adopt a “metro plus tier 2” hub model wherein senior leadership and complex work can be operated from metros and scaled operations with specialist teams can be taken up from emerging cities.
• Develop talent pipeline in collaboration: Invest in cybersecurity talent pipelines, partnerships with Indian security institutes, and advanced SOCs (Security Operations Centres).
• Use outcome-based metrics: GCCs should adopt outcome-based metrics, quantify their impact on revenue and innovation, and integrate closely with business units worldwide. Strategic importance within the enterprise needs to be highlighted by GCCs.

Shaping GCC Growth in India – What challenges and opportunities lie ahead of us?

India will have its fair share of challenges that needs to be dealt with before GCCs reach their full potential by converting into opportunity.

Challenge 1: Skill gaps in emerging technologies
Demand for AI engineers, cybersecurity experts, semiconductor talent, and product managers is far greater than supply. Wage inflation and talent churn are real risks that needs attention.
Opportunity: Indian GCCs needs to convert this challenge to opportunity with its ability to reskill at scale. GCCs can build in-house academies, collaborate with universities, and tap tier-2 talent to create sustainable pipelines. Apprenticeships and industry-linked certifications can turn to be a huge opportunity.

Challenge 2: Balancing cost efficiency with advanced capability building
Global firms still expect GCCs to deliver savings, while developing deep engineering and innovation. These dual expectations can stretch teams and will not be easy to deliver.
Opportunity: Shifting to “smart cost” models—automating repetitive tasks, rationalising vendors, and using AI-assisted development can support diverting resources for higher-value work. Indian GCCs will have opportunity to maintain affordability while expanding capability depth.

Challenge 3: Keeping pace with global data and AI regulations
New rules in Europe, the US, and Asia around data residency, privacy, and AI usage are expected to create compliance complexity for GCCs. With new Indian regulations in making will also add complexities.
Opportunity: India-based teams can lead the enterprise’s global compliance playbook by developing reusable frameworks for privacy-by-design, AI governance, and secure data operations. This can position India as the enterprise’s regulatory nerve centre.

Challenge 4: Hybrid work and cross-cultural coordination
Post pandemic, several teams continue to work remotely or in hybrid mode instead of working out of a fully operational office. Managing global teams across time zones while working in hybrid mode continues to be difficult. Collaboration, ownership, and communication need constant reinforcement and would need more frequent office presence.
Opportunity: GCCs can invest in remote leadership training, digital collaboration tools, and cultural alignment programs. India’s strength in managing distributed teams will be a strong differentiator.
 

Welcoming 2026 for an exciting journey ahead

The year 2025 was a growing year for India’s GCC landscape. Following three themes defined the landscape:

1. AI excitement needed grounding in governance
Early excitement around generative AI gave way to practical questions regarding data privacy, model accuracy, intellectual property, and enterprise risk management. GCCs that balanced innovation with responsible deployment built stronger credibility.

2. Leadership and soft skills became extremely important
As Indian teams took on global roles, communication, stakeholder management, and cultural intelligence became essential. 2025 made it clear that capability building must include leadership development at all levels.

3. Multi-hub models proved essential for resilience
Enterprises that expanded to multiple Indian cities or paired India with locations abroad handled disruptions-geopolitical, regulatory, or talent-related more effectively.

Future of GCCs in India

In the coming year 2026, India will transition from being the world’s outsourcing backbone to its digital operations headquarters. Successful GCCs will be those that:

• embrace AI-native workflows
• invest in responsible governance
• build diverse talent pipelines across metro and tier-2-cities
• adopt outcome-based performance models
• take ownership of full-service cycle across value chains

While the world is seeking stability, capability, and innovation at scale, India’s GCCs can be the best option to shape the next decade of global enterprise transformation.

This outlook was published in Business World on 10 December 2025. Read here