Multinational Giants Like ArcelorMittal, Heineken, and Google Relocate GCCs from Eastern Europe to India

Hyderabad, India – July 29, 2025 – A significant shift is underway as major multinational corporations (MNCs), including ArcelorMittal, Heineken, and Google, are relocating their Global Capability Centers (GCCs) from Eastern Europe to India. This strategic move highlights India's growing prominence as a global hub for innovation, technology, and cost-effective operations.

Why Are MNCs Moving GCCs to India?

The relocation of GCCs from countries like Poland, Romania, Hungary, and the Czech Republic to India is driven by several key factors:

• Cost Efficiency: India offers a 50% cost advantage in salaries compared to Eastern Europe, making it an attractive destination for MNCs seeking operational savings.
• Skilled Workforce: With over 2.5 million STEM graduates annually, India provides a vast, highly skilled talent pool proficient in AI, cloud computing, cybersecurity, and analytics.
• Scalability Challenges in Eastern Europe: Rising operational costs and talent saturation in Eastern European cities like Krakow, Bucharest, and Prague have limited scalability, pushing MNCs to seek alternatives.
• Geopolitical Stability: The ongoing Russia-Ukraine conflict has introduced geopolitical uncertainties in Eastern Europe, prompting companies to favor India’s stable environment.
• Innovation Hub: India’s GCCs are evolving from back-office support to strategic centers for R&D, AI engineering, and digital transformation, with over 86% of GCCs involved in AI and ML initiatives.

Major MNCs Leading the Shift

• ArcelorMittal: The world’s second-largest steelmaker is establishing a GCC in Hyderabad to centralize HR, IT, finance, and digital analytics functions, moving some business support processes from Europe to optimize costs.
• Heineken: The Dutch brewer is investing Rs 2,500–3,000 crore to set up its first Asia-Pacific GCC in Hyderabad, focusing on streamlining global operations despite challenges with office space availability.
• Google: Relocating software engineering and QA teams from Kraków to India, Google is leveraging India’s tech ecosystem for its AI-driven solutions and software development.

Other notable MNCs, including IBM, SAP, Deutsche Bank, and Wells Fargo, are also expanding or shifting operations to Indian cities like Bengaluru, Hyderabad, and Gurugram.

India’s Growing GCC Dominance

India currently hosts over 1,700 GCCs, accounting for 53% of the world’s total, and employs more than 1.66 million professionals. Industry experts predict that by 2030, India will house 2,400–2,550 GCCs, generating a market size of $100–110 billion and creating 2.5–4.5 million jobs.

Cities like Bengaluru (29% of GCCs), Hyderabad (16%), and emerging Tier-2 hubs such as Coimbatore, Kochi, and Jaipur are becoming prime destinations due to competitive costs, robust infrastructure, and government incentives.

Strategic Implications for India

This shift underscores India’s transformation from a cost-saving outsourcing destination to a global innovation powerhouse. GCCs are now pivotal in driving product engineering, AI innovation, and business strategy, with many establishing GenAI Centers of Excellence and developing large language models (LLMs) for global operations.

The Indian government’s supportive policies, including the Union Budget 2025 framework for GCC growth in Tier-2 cities, further enhance India’s appeal. These policies, combined with a focus on Digital Public Infrastructure (DPI) and AI capability building, are positioning India as the preferred choice for MNCs.

What’s Next for India’s GCC Ecosystem?

As MNCs continue to realign their global strategies, industry forecasts suggest that 500 new GCCs or major expansions could be established in India over the next 2–3 years. This growth is expected to boost fresher hiring by 50% compared to last year, particularly in non-tech roles like finance, HR, and marketing, while core tech roles tap into India’s vast IT talent pool.

With its unmatched combination of talent, scale, and cost-efficiency, India is not just the back office of the world—it’s becoming the strategic nerve center for global operations. Stay tuned as India continues to redefine the global GCC landscape!

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