Mid-Market GCCs Set to Drive the Next Phase of Growth: Nasscom-Zinnov Report Globally, there are 130,000 to 150,000 mid-market companies, and India stands to attract a significant share – estimated at 30,000 to 40,000

Global Capability Centres (GCCs) continue to be a key growth sector for the tech industry in India, contributing nearly one-third of the industry's total exports. Within this thriving ecosystem, mid-market GCCs are set to drive the next phase of growth emerging as high-impact innovation hubs, according to a report released by Nasscom and Zinnov on 'India's GCC Leap: Capturing Global Mid-Market Momentum'

Mid-market GCCs refer to Capability Centres established by mid-sized enterprises with annual global revenues typically ranging between USD 100 million to USD 1 billion. Mid-market GCCs focus on delivering high-value, specialized services while maintaining a leaner operational model compared to larger GCCs.

Currently, India is home to over 480 mid-market GCCs, employing more than 210,000 professionals, and over 680 mid-market GCC Units. This segment has been instrumental in shaping India's GCC narrative with accounting for 27 per cent of all GCCs and 22 per cent of total GCC units in the country.

Over 45 new mid-market GCCs have set up operations in India in the past two years alone, accounting for nearly 35 per cent of total GCCs, and 30 per cent of total GCC units during this period. Despite operating at around 40 per cent the scale of their larger counterparts (non-mid-market GCCs), mid-market GCCs are consistently delivering transformative outcomes across product innovation, enterprise agility, digital maturity and deepening niche skill capabilities. Their strategic focus and lean operating models have resulted in a 1.3x higher presence in transformation hubs, with a maturity curve advancing 1.2x faster than non-mid-market GCCs.

India is today home to 47 per cent of global product management talent for mid-market GCCs and over 25 per cent of their deeptech workforce, cementing its position as a global hotspot for next-gen capabilities in AI/ML, cybersecurity, cloud, and data science. Nearly 60 per cent of end-to-end product and platform ownership in enterprise portfolios, particularly across ER&D segment, is being driven from India by mid-market GCCs.

In terms of market distribution, Bengaluru, Hyderabad, NCR, and Chennai remain leading destinations for mid-market GCCs, attracting 74 per cent of all new GCC units established. In addition to Bengaluru, Hyderabad has rapidly emerged as a leading talent hotspot for mid-market GCCs in the last 5 years, contributing 25 per cent of talent growth.

Rajesh Nambiar, President, Nasscom, said, "The next wave of global capability will not come from size, but from speed, specialization, and strategic influence. With world-class talent and a vibrant digital ecosystem, mid-market GCCs are no longer just delivery engines but are emerging as cultural innovation labs and centres of excellence, driving R&D, product innovation, and enterprise digitization for global impact."

However, mid-market GCCs often face hurdles in talent attraction, particularly among early-career professionals, owing to limited brand visibility on top campuses. Process-wise, many still operate without standardized operating procedures, which hampers scale and collaboration across functions. Moreover, these centres often struggle to establish strong innovation linkages with startups, academic institutions, and technology partners. Their minimal local brand presence also restricts their ability to influence and integrate deeply within India's broader innovation ecosystem.

"The most underrated transformation in India's tech landscape is the rise of mid-market GCCs. These centers aren't just scaled-down versions of large enterprises; they're rewriting the playbook. Operating at 40 per cent the scale, they are 1.3x more likely to be transformation hubs and 1.2x faster in traversing the maturity curve," said Pari Natarajan, CEO, Zinnov.

Despite these headwinds, the runway for growth is immense. Globally, there are 130,000 to 150,000 mid-market companies, and India stands to attract a significant share – estimated at 30,000 to 40,000, especially from markets like the US, UK, Germany, and Japan and verticals such as software and internet, BFSI, healthcare. If nurtured right, mid-market GCCs in India can evolve into AI-native innovation hubs, capable of spinning off IP, shaping policy landscapes, and functioning as autonomous, high-growth enterprises.