As West Asia scales up its emerging global capability centre (GCC) ecosystem, industry experts say India could attract incremental investment if geopolitical tensions slow expansion in the region.

India is already the world’s largest GCC hub, with over 1,850 centres employing nearly 2 million professionals. The country’s GCC sector generates around $64-65 billion in annual revenue.

In comparison, the West Asia capability center market was valued at about $4.2 billion in 2024 and is projected to reach nearly $24.7 billion by 2032, according to TeamLease Digital.

This is driven by government-led digital transformation and economic diversification initiatives. Within the region, the UAE accounts for about 27.6 per cent of the West Asia and Africa GCC market, supported by business-friendly free zones and strong global trade connectivity.

“If expansion plans in West Asia slow down due to regional tensions, India’s mature ecosystem, deep talent pool, and proven delivery capabilities will naturally attract a share of that investment,” Neeti Sharma, CEO, TeamLease Digital, commented.

Typically, geopolitical uncertainty sometimes makes companies review the pace, expansion, and location of new investments. In such situations, India could see some incremental interest because it already has a large and well-established GCC ecosystem.

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However, most multinational companies usually follow a diversified location strategy rather than shifting entirely, so any advantage for India is likely to be gradual rather than immediate, Jaspreet Singh, Partner, Grant Thornton Bharat, explained.

India’s advantage lies in the scale of its skilled talent pool, mature ecosystem, and cost efficiencies. The country already hosts around 55% of the world’s GCCs, and with the sector growing at about 10 per cent CAGR toward a $110 billion market.

It produces over 1.5 million engineering graduates annually, ensuring a steady pipeline of talent in AI, cloud, cybersecurity, and data engineering. Combined with 30–40 percent lower operating costs than many global markets and a strong digital ecosystem, India remains an attractive destination for large-scale capability centers.

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While West Asia has a smaller talent pool locally compared to India, companies are attracted to the region due to its strategic location, connectivity, infrastructure, and business-friendly policies, including free zones and tax incentives.

These advantages made countries like the UAE and Saudi Arabia ideal for regional headquarters, shared services, and market-facing operations serving Europe, Asia, and Africa, Sharma added.

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On the other hand, Mohammed Faraz Khan, Partner at Zinnov, argued that the ongoing conflict in West Asia has not triggered immediate structural changes in GCC strategy.