With over 130 UK-headquartered companies already operating global capability centres (GCCs) in India, the UK now represents the second-largest cohort of GCCs in the country after the US, according to a recent report by leading global management consultancy Zinnov.
The report, titled ‘UK Global Capability Centres in India: Unlocking Strategic Opportunities’, has revealed a transformative shift in the global strategies of UK enterprises.
The major UK GCCs are in Hyderabad, Bengaluru and Chennai. Firms like Barclays, HSBC, GSK, Unilever, Vodafone, Rolls-Royce, BP, Shell, Arm and Tesco are using India to scale and lead their global innovation mandates.
The report highlights the strategic significance of India for UK firms through several key findings. UK GCCs in India created an impressive $6.5 billion in value annually (FY2024), with 200,000 professionals powering initiatives in AI, cloud, cybersecurity, and analytics.
Notably, 14% of these centres are operated by Fortune Global 500 companies, underscoring their global importance. A remarkable 95% of UK GCCs are investing in engineering R&D, a cornerstone for product innovation and intellectual property creation.
Reason Behind this Growth
One of the reasons being cost of operations in India is 50% lower compared to the UK, allowing firms to scale efficiently without compromising on quality. In fact, over 90% of UK GCCs function as multi-functional centres, demonstrating a high level of operational maturity and strategic integration within their global enterprises.
UK companies are also moving towards a model of co-creation and collaboration with India. Tier-1 and Tier-2 cities are being strategically leveraged to de-risk concentration and support follow-the-sun delivery models. Regulatory maturity in data protection and cybersecurity is also promoting UK firms’ confidence in operating from India.
India’s depth of AI, data science, and financial engineering talent is proving particularly invaluable for UK’s financial institutions focusing on AI-driven risk assessment, fraud detection, and algorithmic trading.
As the Comprehensive Economic and Trade Agreement (CETA) opens new doors, the UK–India relationship is going to become one of the most strategically vital alliances in the digital economy.
Mohammed Faraz Khan, partner – GCC Business at Zinnov, noted, “The UK–India corridor is on the cusp of a generational opportunity. With digital transformation accelerating globally, UK companies are not just looking at India to scale — they’re looking at India to lead. The GCC model offers a fast-track to innovation, resilience, and long-term growth.”
A Strategic Realignment for the Future
With the free trade agreement (CETA) expected to catalyse over £35 billion in bilateral trade by 2030, the expansion of UK GCCs in India signals more than just economic collaboration. It reflects a strategic realignment for future-ready growth.
As UK firms seek to compete globally, India’s established strengths in digital talent, engineering excellence, and innovation provide a crucial advantage, particularly for mid-sized enterprises aiming for agility, speed, and cost-efficiency.
“The expansion of UK-headquartered Global Capability Centres in India is a strategic recalibration,” said Alouk Kumar, founder & CEO at Inductus Group, a strategic advisory and consulting firm. “There are over 120 UK firms already operating GCCs in India, as embedded drivers of innovation, customer experience, and competitive differentiation. This is smart, future-focused scaling.”
India’s mature digital infrastructure, vibrant start-up ecosystem, and deep domain talent across sectors like fintech, pharmatech, and AI are now directly aligned with the UK’s forward-looking economic agenda.
“India is no longer about labour arbitrage. It’s about intellectual arbitrage,” Sumit Mitra, CEO, Tesco Business Solutions shared.
From AI models for financial forecasting to RegTech solutions for compliance-heavy sectors, India-based GCCs are helping UK firms create high-trust, high-impact operations. These centres are increasingly taking on product ownership, embedding ESG analytics, and enabling complete business transformation, moving far beyond transactional functions.
India’s cities, particularly Bengaluru, play a critical role in this transformation. Jay Doshi, MD & CIO of BT Group, explained: “Bengaluru is known as the ‘silicon valley of the east’ due to its vibrant tech ecosystem. Academia and industry together have enabled large corporations to accelerate their transformation journeys and remain competitive globally.”
Adding to this perspective, Lalitha Indrakanti, CEO of Bengaluru-based Jaguar Land Rover technology & business services India, captured the essence of India’s evolving role in global operations: “India has proven its mettle as a hub of engineering excellence, innovation, transformation and digital talent. GCCs here have evolved from cost centres to value amplifiers and reliable transformation partners.”
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