Nano GCCs in India Grow Faster Than Traditional Centres

India’s Global Capability Centre (GCC) ecosystem is undergoing a transformation, with Nano GCCs—lean, specialized units employing between 25 and 250 professionals—growing faster than their larger counterparts.

These compact centres, often backed by private equity and focused on innovation, are expanding at an annual rate of 15–20%, compared to the broader GCC segment’s average growth of 10–12%.

What Are Nano GCCs?

Nano GCCs are small-scale offshore centres established by multinational corporations (MNCs) to deliver high-impact, niche capabilities.

Unlike traditional Global Capability Centres that may employ thousands, Nano GCCs operate with compact teams and focus on areas such as:

Artificial Intelligence and Machine Learning
Cybersecurity and Cloud Engineering
Product Design and Development
Data Analytics and Automation

These centres often function as innovation labs or specialist pods, enabling companies to test new ideas, build prototypes, and respond quickly to market shifts.

Why Nano GCCs Are Gaining Traction

Several factors are driving the rise of Nano GCCs in India:

Cost Efficiency: Smaller teams require lower upfront investment and offer faster returns.
Talent Access Beyond Metros: Tier-2 cities like Coimbatore, Indore, and Bhubaneswar are emerging as hubs for Nano Global Capability Centres, offering skilled talent at competitive costs.
Agility and Speed: Nano GCCs can be set up in under six months, allowing companies to respond quickly to evolving business needs.
Private Equity Backing: Many Nano GCCs are funded by PE firms looking to build scalable, high-margin delivery models.

These centres also serve as strategic entry points for global firms exploring India’s talent pool without committing to large-scale operations initially.

Industry Trends and Market Share

As of FY2024, India hosts over 1,600 Global Capability Centres employing approximately 1.6 million professionals.

Nano and micro GCCs now account for nearly one-fourth of mid-market GCCs, indicating a shift in how companies approach offshore delivery.

Industry experts predict that the share of Nano GCCs will continue to rise, especially in sectors like fintech, healthtech, and enterprise SaaS.

The growth of these centres is also reshaping hiring patterns.

Companies are increasingly seeking cross-functional talent who can thrive in agile environments. They place strong emphasis on innovation and problem-solving skills.

Challenges and Outlook

While Nano GCCs offer speed and flexibility, they also face challenges such as:

Limited scalability without additional investment
Need for strong local leadership and governance
Competition for niche talent in emerging tech domains

Despite these hurdles, the outlook remains positive.

The model is particularly attractive to startups, mid-sized firms, and MNCs seeking to decentralize their global operations.

India’s digital infrastructure is improving, and government incentives are supporting tech investments.

As a result, Nano GCCs are expected to play a pivotal role in the next phase of offshore delivery.

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