Middle East crisis may accelerate India’s GCC growth, experts say
NEW DELHI, INDIA — India’s global capability center (GCC) ecosystem may face short-term disruptions due to the Middle East conflict, but experts say the nation could emerge as a primary beneficiary as companies seek safer, stable locations for operations.
According to a report from The Economic Times, multinationals with a presence in both regions are reconsidering expansion plans, potentially accelerating investment in India’s GCC sector.
Middle East tensions slow Gulf nearshore momentum
While the Gulf has been emerging as a nearshore hub, experts caution that security concerns may slow investment.
“The Gulf was not yet a significant nearshore base, but it was getting there fast,” said Pareekh Jain, CEO of EIIRTrend, which tracks engineering, IoT, and R&D sectors.
The GCC operations of Microsoft, Visa, Intel, Qualcomm, Siemens Healthineers, DHL, Nokia, HP, PepsiCo, Emerson, Lenovo, Johnson Controls, and Eaton currently operate in both India and the Middle East across technology, healthcare, logistics, manufacturing, and financial services.
However, the report warns that global instability could delay some GCC plans in India as parent organizations prioritize immediate risk management.
“This could be negative for GCCs in India for the short term,” Jain added.
According to the report, Nasscom said that normal business operations remain intact, while member companies should postpone travel to impacted regions and establish remote work capabilities.
India seen as stable long-term GCC hub
Despite near-term uncertainty, India’s GCC sector remains attractive for long-term growth.
Subimal Bhattacharjee, a tech policy analyst, noted that disruptions in the Gulf may trigger a temporary freeze on investment and hiring.
“Global delivery chains would be impacted to various degrees and Indian GCC firms could be busier,” he said, highlighting India’s potential to absorb additional workload and take on a more client-facing role.
India currently operates more than 1,800 GCCs, which provide jobs to 1.9 million workers and generate US$64.6 billion in revenue for fiscal 2024. The sector will grow to US$105 billion by 2030.
“They might re-evaluate their plans and could double down on India for GCC,” Jain said, noting that India remains a stable investment destination amid instability in Latin America, Eastern Europe, and the Middle East.
The report said that the next 30-60 days are critical. If the conflict remains contained, India could see accelerated GCC growth as firms reduce exposure to high-risk regions. Conversely, a prolonged crisis could pressure global technology budgets and slow expansion.
For the outsourcing industry, this period may mark a pivotal shift, with India potentially taking on a larger role in global delivery chains, blending risk mitigation with strategic growth in the GCC sector.
