PE firms join GCC boom, push portfolio companies to set up captive centres (opens original article in a new tab)

Private equity-backed firms and mid-market companies are significantly expanding India's global capability centres, using them for AI, engineering, and product development, with technology sectors leading the trend.

• Private equity-backed firms and mid-market companies are driving India's global capability centre (GCC) expansion, with 31% of new GCC additions between FY21 and FY26 coming from this segment.
• PE-backed GCCs are used for AI, engineering, and product development, beyond cost arbitrage, to create value for portfolio companies.
• Technology-led sectors like software-as-a-service and IT security account for 55% of PE-backed mid-market GCCs, with a focus on product engineering and AI initiatives from inception.
• GCC-as-a-service and build-operate-transfer models are lowering entry barriers for smaller firms, enabling broader adoption of the model.