Rise of " Micro GCCs" in India - Driving the Global Expansion of SMEs
For decades, India has been a magnet for global businesses seeking talent, efficiency, and innovation. The country’s journey in the global business landscape has been nothing short of remarkable.
In the 1980s, India became the resourcing capital of the world, offering a massive pool of skilled professionals. By the 1990s, it transformed into the outsourcing capital, with large corporations offshoring their IT, customer service, and back-office functions.
Today, India is emerging as the insourcing capital of the world, where companies no longer just outsource but set up their own teams to drive core business functions.
What’s exciting is that this trend is no longer only limited to large enterprises.
Source: Nasscom and moneycontrol
Small and mid-sized companies (SMEs) across the world are increasingly setting up their own "Micro GCCs" (Small Global Capability Centres) in India.
These smaller, more agile centres - typically with teams of 5 to 50 employees - are enabling businesses of all sizes to tap into India’s talent pool and boost their global competitiveness – and also take initial steps into India’s 1.4 billion people strong consumer market
The current state of GCCs in India:
India is already home to over 1,600+ GCCs, employing more than 1.7 million people.
For years, these centres were predominantly established by Fortune 500 companies with the financial muscle to build large-scale operations. However, this model is evolving.
Source: Yourstory
Thanks to remote work models, flexible infrastructure, and digital transformation, even smaller companies are now able to set up "Micro GCCs" in India without massive upfront investments.
This shift is giving SMEs the same access to India’s talent and cost advantages that were once exclusive to industry giants.
What are "Micro GCCs" in India?
Imagine you run a tech startup in London or a mid-sized marketing agency in New York or an advisory firm in Copenhagen. You want to scale but face rising costs and limited local talent. Instead of outsourcing, you decide to set up a small, dedicated team in India - with 5 to 50 team members - you get direct control over your operations, maintain your company culture, and build a seamless extension of your core team.
"Micro GCCs" offer the perfect blend of cost efficiency, scalability, and flexibility. They allow SMEs to operate in India just like the big players, without the need for massive infrastructure or investments.
Source: House for Sources
Why "Micro GCCs" are a Game-Changer for SMEs?
There’s a reason why companies of all sizes are flocking to India:
World-Class Talent: India produces over 1 million engineers and 300,000 management graduates every year, making it a global talent powerhouse. By leveraging India’s talent and cost benefits, you can compete with larger players on a global scale.
Cost Efficiency: Setting up a "Micro GCC" can cut operational costs by 40% to 70%, helping SMEs remain competitive without compromising on quality.
Agility and Flexibility: With co-working spaces, remote work options, and plug-and-play offices, SMEs can quickly establish operations with minimal overheads.
Direct Control and Quality: Unlike traditional outsourcing, "Micro GCCs" give you full control over your remote team, ensuring alignment with your goals and quality standards.
Praveen Kumar DK at "TNA10" Copenhagen by Tech Nordic Advocates
I recently joined Tech India Advocates-led delegation in Denmark where I highlighted the the rising opportunity of "Micro GCCs" in India and why it is the right time for Nordic tech companies to consider India as a strategic growth partner, and the work we are doing through InsourceIndia to make India accessible for SMEs – not just as a talent hub, but as a launchpad for global scale.
“India Welcomes Everyone” - Why do I say that?
Doing business in India can be as complex as it is rewarding. The country isn’t a single, uniform market – it’s more like a continent, made up of 28 diverse states, each with its own language, culture, policies, and regulatory quirks.
For global SMEs, this diversity can be daunting. Navigating compliance, legal processes, and local market dynamics requires patience, persistence – and the right partners. But the landscape is changing fast.
India is now more accessible than ever, thanks to better digital infrastructure, business-friendly reforms, and a thriving startup scene. Built on decades of global trust, talent, and delivery excellence, "Micro GCCs" are now giving SMEs the same access to India that was once reserved for Fortune 500s.
India is no longer just a destination for corporate giants - it’s a land of opportunity for businesses of all sizes.
As an SME looking to scale smartly, if India is not on your business plan - you may be missing a big opportunity.
Have you thought about it?
Let’s discuss.
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Sabina Ciofu is Associate Director – International, running the International Policy and Trade Programme at techUK.
Based in Brussels, she leads our EU policy and engagement. She is also our lead on international trade policy, with a focus on digital trade chapter in FTAs, regulatory cooperation as well as broader engagement with the G7, G20, WTO and OECD.
As a transatlanticist at heart, Sabina is a GMF Marshall Memorial fellow and issue-lead on the EU-US Trade and Technology Council, within DigitalEurope.
Previously, she worked as Policy Advisor to a Member of the European Parliament for almost a decade, where she specialised in tech regulation, international trade and EU-US relations.
Sabina loves building communities and bringing people together. She is the founder of the Gentlewomen’s Club and co-organiser of the Young Professionals in Digital Policy. Previously, as a member of the World Economic Forum’s Global Shapers Community, she led several youth civic engagement and gender equality projects.
She sits on the Advisory Board of the University College London European Institute, Café Transatlantique, a network of women in transatlantic technology policy and The Nine, Brussels’ first members-only club designed for women.
Sabina holds an MA in War Studies from King’s College London and a BA in Classics from the University of Cambridge.
Policy Manager for International Policy and Trade, techUK
Daniel Clarke
Policy Manager for International Policy and Trade, techUK
Dan joined techUK as a Policy Manager for International Policy and Trade in March 2023.
Before techUK, Dan worked for data and consulting company GlobalData as an analyst of tech and geopolitics. He has also worked in public affairs, political polling, and has written freelance for the New Statesman and Investment Monitor.
Dan has a degree in MSc International Public Policy from University College London, and a BA Geography degree from the University of Sussex.
Outside of work, Dan is a big fan of football, cooking, going to see live music, and reading about international affairs.
Theo joined techUK in 2024 as EU Policy Manager. Based in Brussels, he works on our EU policy and engagement.
Theo is an experienced policy adviser who has helped connect EU and non-EU decision makers.
Prior to techUK, Theo worked at the EU delegation to Australia, the Israeli trade mission to the EU, and the City of London Corporation’s Brussels office. In his role, Theo ensures that techUK members are well-informed about EU policy, its origins, and its implications, while also facilitating valuable input to Brussels-based decision-makers.
Theo holds and LLM in International and European law, and an MA in European Studies, both from the University of Amsterdam.
Lewis' programmes cover a range of policy areas within Market Access (international trade regulation, sanctions and export controls, technical standards and product compliance, supply chains) and Consumer Tech (media and broadcast policy, consumer electronics, and connected home technology).
Prior to joining techUK, Lewis worked in government affairs and policy roles for international trade associations in Southeast Asia including the American Malaysian Chamber of Commerce and the European Chamber of Commerce in Cambodia.
He holds an undergraduate degree in Social and Political Sciences from the University of Cambridge and an MSc in Public Policy & Management from SOAS University of London.
Tess joined techUK as an Policy and Public Affairs Team Assistant in November of 2024. In this role, she supports areas such as administration, member communications and media content.
Before joining the Team, she gained experience working as an Intern in both campaign support for MPs and Councilors during the 2024 Local and General Election, and working for the Casimir Pulaski Foundation on defence and international secuirty. She has worked for multiple charities, on issues such as the climate crisis, educational inequality and Violence Against Women and Girls (VAWG). In 2023, Tess obtained her Bachelors of Arts in Politics and International Relations from the University of Nottingham.
Praveen Kumar DK is a Bengaluru based British-Indian entrepreneur and CEO of InsourceIndia, a partner for UK and European businesses looking to build, manage and scale teams in India. With over 20 years of experience in global expansion and talent strategy, he has helped many businesses grow with confidence in new markets.
