India’s GCC Evolution: Why Logistics could be the Next Big Frontier!
India’s Global Capability Centers (GCCs) have been reshaping the way multinational companies manage global operations. Initially, these centers were built around back-office efficiency and acted as transaction-processing units, but over time, they have evolved into innovation hubs, handling advanced analytics and end-to-end business solutions.
According to PwC India the GCC industry is projected to grow at a CAGR of 11–12% between FY25–29. Another report confirms that the Indian GCC industry is expecting to reach US$100 billion by 2030 and employ over 2.5 million professionals. With more than 1,700 GCCs already operational in India, the number is expected to cross 2,400 by the end of this decade.
Historically, GCCs have been focused on finance, IT, finance and R&D; however, the model also has clear applications in other industries. In recent times, GCCs are now expanding into new industries, and logistics are emerging as the next big frontier.
Industry leaders highlight that logistics presents untapped opportunities in compliance, analytics and communication support. With strategic planning, GCC can help organizations enhance efficiency and strengthen global operations.
In this blog, we discuss the evolution of GCCs in India, why logistics is the next frontier, and how global companies can benefit from this shift. Read on to know more.
What is GCC?
A Global Capability Center (GCC) is an offshore hub established by multinational corporations to manage operational or strategic functions such as analytics, customer support, or compliance.
The Role of GCCs in Logistics
So far, logistics companies have limited their India operations mainly to documentation outsourcing such as customs forms, bills of lading, and compliance papers.
However, the scope of logistic GCC goes far beyond paperwork. It can also manage:
- Customer communication and service desks
- Shipment tracking and reporting
- Network optimization and analytics
- Operations planning and performance monitoring
- Compliance and risk management
In this model, India handles the logistics operations (planning, paperwork, etc.), while the feet on the ground (fleets, cranes, warehouses, execution workforce) remains in the U.S., Europe, or other markets. Furthermore, these centers can increasingly integrate advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and data analytics into logistics operations to enhance operational excellence.
Why India is Emerging as a Logistics GCC Hub?
Cost Advantage
Labor and infrastructure costs in India are significantly lower than in the U.S. or Europe.
Skilled English-Speaking Talent
India has a large pool of professionals’ adept at communication, compliance, and documentation.
Experience with Global Time Zones
India’s established BPO and call-center ecosystem makes flexible shifts and night operations viable.
Mature GCC Ecosystem
With 1,700+ GCCs already functioning, India has the right infrastructure, policies, and support systems in place.
Tier-2 & Tier-3 City Expansion
Rising costs in metros are pushing GCCs into Tier-2 and Tier-3 cities, unlocking new talent at lower costs.
Case Studies: Early Movers in Logistics GCCs
- Maersk employs over 20,000 professionals in India, including 2,900 technology experts across Bengaluru, Pune, Mumbai, and Chennai. Its Bengaluru Technology Centre has developed over 10 AI patents, playing a pivotal role in Maersk's digitalization efforts.
- P&O Nedlloyd already operates India-based centers for logistics and back-office functions, while US-based CP Ships plans to launch operations in Mumbai soon. These centers highlight India’s role as a hub for centralized logistics operations.
Challenges to Overcome
Regulatory complexity
In India, Customs and compliance rules differ across geographies, requiring deep domain expertise.
Data security and privacy
Sensitive shipping and trade documents must be handled under strict governance.
Perception of job loss
Amid global shifts, stakeholders in the U.S. or Europe might perceive offshoring as a threat to local jobs, although on-site logistics positions continue unchanged.
Skill gaps in logistics domain knowledge
Finally, the training and upskilling in the logistics domain will be critical to bridge this gap.
The Road Ahead
The road ahead looks promising. India’s GCCs are expected to become self-sustaining hubs and expected to contribute 2% to the country ‘s GDP by 2030. By leveraging AI, real-time analytics, and automation, these centers will optimize supply chains, enhance decision-making, and enable flexible operations. This growth will position India as a strategic hub of excellence for multinational companies.
Conclusion
In conclusion, India’s GCC ecosystem offers a perfect opportunity for businesses to access skilled talent, cost efficiency, and measurable performance. These nurturing factors create a favorable environment for logistic GCC growth in India. With strategic planning, logistics GCC in India can evolve from a process hub into a center of innovation and can drive global supply chain excellence.