Why PE Firms Are Building AI-Powered Capability Centres in India

As global private equity (PE) firms face mounting pressure to deliver operational efficiency and sharper  insight across markets, India has emerged as a critical enabler. What was once a cost-driven  outsourcing destination has become a strategic hub for many PE firms seeking to future-proof their  operating models. 

This shift is not just about delivering cost savings. It is about building institutional capabilities that are  consolidated, technology-led, native AI and talent-rich; right at the heart of where decisions are made,  leading to value creation for PEs. 

Why Do Global Capability Centres (GCCs) Matter For PE Firms? 

There has been a fundamental shift in drivers for enterprises to adopt the GCC operating model,  especially in the last five years, with companies looking to build capabilities and domain depth within  their GCCs.

GCCs are increasingly relevant for PE firms as they look to create value beyond traditional  financial engineering. By establishing their own GCCs, especially in a strategic hub like India, PE firms  gain a centralised, digitally enabled platform to drive multitude of benefits such as operational  excellence, standardisation and foundational innovation platform across their portfolio companies. These centres allow PE firms to: 

• Build new digital business models and revenue channels by accelerating digital innovation  and transformation across the portfolio with shared AI capabilities, digital products and  analytics capabilities. 
• Uplift earnings before interest, taxes, depreciation and amortisation (EBITDA) by reducing costs while maintaining speed and agility. 
• Enable talent from India’s deep pool of digital and domain specialists. 
• Build repeatable value creation engines that can be embedded into the investment lifecycle and drive a more algorithmic process, from diligence to exit. 

What sets PE GCCs apart from traditional corporate centres is how they are tied to value creation.  These centres go beyond managing operations by accelerating transformation across portfolio  companies, thereby enhancing the PE firms’ ability to support active ownership models, improve time-to-value and drive better outcomes for limited partners. 

Why Is India The GCC Destination Of Choice For PE? 

India has firmly established itself as the global hub for GCCs—and for PE firms, by offering a uniquely  compelling mix of strategic, operational and financial advantages. Key reasons include: 

• Deep digital talent pool: India ranks second in global AI skill penetration index and 31 percent of the global science, technology, engineering and management (STEM) graduates come from  the country
• Mature GCC Ecosystem: With over 50 percent of global market share and 1,800+ GCCs already  operating in India across industries, PE firms can plug into a well-established ecosystem with  ready access to best practices, vendor networks and talent
• Proven cost-quality equation: India offers significant cost advantages without compromising  quality or innovation
• Policy And Infrastructure Support: Government incentives and robust digital infrastructure  make India a low-friction setup destination
• Innovation hotbed: Beyond efficiency, India’s GCCs are increasingly hubs for product  development, AI innovation and business model experimentation 

For PE firms, building a GCC in India is more than just an operational move; it is a strategic investment  into a high-performance platform that can scale value across the portfolio. 

The GCC Wave

What was once the domain of large multinational corporations is now rapidly expanding to include  mid-market companies and PE firms, many of whom are actively setting up GCCs in India. 

Around 45 percent of the 1,800+ GCCs globally are attributed to mid-market firms, many of which are  backed by PE. Mid-market GCCs in India typically start small, with teams of 50 to 200 people, but are  laser-focused on high-impact areas that directly support business growth and agility. These centres are  not about massive scale, but about building targeted capabilities that deliver speed, innovation and  cost-effectiveness. 

Likewise, PE firms are setting up GCCs as integral parts of their global operations with a wide range of  high-value functions such as: 

• Investment research and market intelligence 
• Deal pipeline support and due diligence 
• Fund accounting and investor reporting 
• ESG compliance and regulatory data tracking 
• Technology architecture and cybersecurity 
• Digital innovation and automation 
• Real-time analytics to help PE teams monitor portfolio performance  

Growth Outlook 

As per Deloitte CII estimates, India’s GCC market is expected to grow from 1800+ GCCs today to up to  5000 GCCs. Mid-market and PE-backed firms are projected to account for a significant portion of this  net new growth, as traditional barriers to entry continue to diminish. 

GCCs offer greater control, faster access to insights and a stronger operating backbone to drive value  creation, especially as the PE industry shifts toward more buyout-focused deals. For India, this  reinforces its role not just as a delivery hub, but as a long-term strategic partner to the global PE ecosystem. As investment complexity and macroeconomic uncertainty grow, India’s relevance to the  PE playbook is enduring and expanding.