Karnataka leads India’s innovation wave with thriving mid-market GCCs: Report

Karnataka hosts over 230 mid-market GCCs, employing more than 74,000 professionals, accounting for nearly half of India’s 480 such centres.

Published Sep 09, 2025 | 6:42 PMUpdated Sep 09, 2025 | 6:42 PM

Representational image. Credit: iStock

Synopsis: The report highlights the robust evolution of mid-market GCCs, with over 90 percent reaching mid-to-high maturity faster than their larger counterparts. The state also anchors 48 percent of global engineering talent within India’s mid-market GCCs, fostering industry-academia partnerships for collaborative research.

Karnataka has yet again solidified its position as India’s premier hub for technological innovation, with a new report showcasing the growth of mid-market Global Capability Centres (GCCs) in the state.

Released in June 2025 by the Karnataka Digital Economy Mission (KDEM) in collaboration with knowledge partner Zinnov, the report, “Mid-market Global Capability Centers (GCCs) in Karnataka: Leading India’s Next Wave of Innovation”, showcases how the state is driving a global transformation.

As per the report, Karnataka hosts over 230 mid-market GCCs, employing more than 74,000 professionals, accounting for nearly half of India’s 480 such centres.

Bengaluru trumps rivals

Bengaluru, often dubbed as India’s innovation hub, commands a dominant 35 percent share of India’s GCC market and is recognised as the fourth-largest technology cluster globally, housing over 890 GCCs. This growth is catapulted by a 1.4 times faster expansion rate compared to larger GCCs, fuelled by deep engineering R&D capabilities and niche digital skills in artificial intelligence (AI) and machine learning.

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Karnataka’s forward-looking GCC Policy and the ‘Beyond Bengaluru’ initiative are decentralising development, extending opportunities to emerging hubs like Mysuru, Mangaluru, and Hubballi-Dharwad-Belagavi. These areas offer lower operational costs (15–25 percent reduction), reduced attrition rates, and government incentives including rental assistance and EPF contribution reimbursement.

Besides, the ‘Nipuna Karnataka’ initiative is powering the workforce through skilling, upskilling, and reskilling in high-growth sectors via public-private collaboration.

Evolution of mid-market GCCs

The report highlights the strategic evolution of mid-market GCCs, with over 90 percent reaching mid-to-high maturity faster than their larger counterparts.

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More than 50 percent of these centres in Karnataka have site leaders with dual roles, combining GCC leadership with global or business unit responsibilities. The state also anchors 48 percent of global engineering talent within India’s mid-market GCCs, fostering industry-academia partnerships for collaborative research.

Karnataka IT Minister Priyank Kharge and KDEM Chairman BV Naidu, applauded the state’s commitment to creating a dynamic business environment. A dedicated unit provides single points of contact (SPOCs) for GCCs, facilitating fast-track approvals and regulatory compliance.

“Karnataka’s mid-market GCCs are maturing 1.4 times faster than their national peers. This shows the strength of our ecosystem, where talent, innovation, and supportive policies come together to enable global enterprises to grow quickly and deliver stronger outcomes. Katalyst will ensure this leadership not only continues but multiplies in the years ahead,” Kharge said.

Meanwhile, Zinnov’s Nilesh Thakker said that these centres are “writing their own playbook,” delivering outsized value with lean, agile teams focused on AI, cloud, cybersecurity, and analytics.

(Compiled and edited by Amit Vasudev)

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