GCC boom positions India at core of global advertising operations

The new wave of Global Capability Centres expansion marks more than a passing trend, observe industry experts. It’s the flavour of the season – and possibly the future of how global advertising is structured.

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  • Akanksha Nagar,
| April 21, 2025 , 8:32 am
Global Capability Centres is an opportunity for Indian talent to work on global mandates, expand skillsets, and elevate the perception of Indian advertising as globally competent, (Representative image by George Kedenburg III via Unsplash)
Global Capability Centres is an opportunity for Indian talent to work on global mandates, expand skillsets, and elevate the perception of Indian advertising as globally competent, (Representative image by George Kedenburg III via Unsplash)

From pharma and fintech to retail and IT, India has long been a fertile ground for Global Capability Centres (GCCs). Now, the advertising industry is joining the bandwagon at scale. In the past year alone, holding companies like WPP, Omnicom, IPG, and dentsu have planted or significantly scaled their GCCs in India, turning the country into a strategic back-end powerhouse for media, tech, and increasingly, creative operations.

This new wave of GCC expansion marks more than a passing trend, observe industry experts. It’s the flavour of the season — and possibly the future of how global advertising is structured.

India has always been a cost-efficient execution hub, but the new generation of GCCs is about more than saving money. With digital media, AI, automation, and performance marketing reshaping agency models, the world’s biggest holding companies are betting on India for its mix of tech infrastructure, scalable workforce, and evolving creative ambition.

WPP, for instance, recently announced scaling up its Global Delivery Centre operation in the country. The specialist capability hub, headquartered in India, has over 10,000 skilled professionals, exceeding the initial target of 4,000. This center leverages the country’s talent pool to provide a range of tech-enabled services, including media activation, performance marketing, and data analytics, for WPP’s global clients.

IPG Mediabrands has been operating a GCC in India since 2018. In 2024, it expanded into Pune, and now services more than 54 global markets from India with six dedicated capabilities across media, tech, and data.

“The growth of GCCs by global advertising firms highlights India’s position as a powerhouse for media innovation, data-driven marketing, and digital transformation,” Ankita Agarwal, Chief Global Capabilities Officer at KINESSO, the tech-driven performance arm of IPG Mediabrands, told Storyboard18.

“India is a center for high-impact, high-value work that drives results for our clients worldwide.” According to Agarwal, India has indisputably emerged as a global leader in digital-first capabilities – whether it’s advanced data science, programmatic media, AI-driven marketing, or creative production.

“The GCC hub in India is already a strategic hub for IPG Mediabrands globally and we are continuously building our talent to ensure we are the next-gen team. Our vision is simple: to build a center that enhances media activation, fuels innovation, and delivers high-quality, data-driven solutions to our clients at scale,” said Agarwal.

The agency is investing in automation, AI-driven analytics, and specialized talent to drive better efficiency and accuracy. “For IPG Mediabrands globally, it means higher-quality campaigns, faster optimization, and seamless knowledge-sharing across markets. Our clients are asking for this and this model is essential in driving optimal business outcomes,” she added.

dentsu has followed suit and announced launching its innovation arm Dentsu Lab soon in Mumbai and Bengaluru to strengthen India’s role in its global ecosystem.

“India’s role in the growth of GCC hasn’t happened overnight; it’s a result of decades of consistent strategic progress, core policy planning and intrinsic innovation,” said Belliappa Mathanda, Chief Operating Officer, APAC, dentsu. “From once being considered a cost-effective hub for transactional support services, Indian centres have transitioned into becoming strategic value-add partners, driving client impact and value creation led by strong local leaders. GCCs are now critical business partners across multiple areas, from research to product development and as an innovation hub.”

Mathanda shared that dentsu positions India not merely as an outsourcing destination but as a pivotal centre for innovation, talent development and global services delivery within its organizational framework.

GCCs vs Homegrown Agencies: Opportunity or Upheaval?

But while global players double down on India, what does this mean for homegrown independents?

On one hand, it’s an opportunity for Indian talent to work on global mandates, expand skillsets, and elevate the perception of Indian advertising as globally competent. On the other hand, experts highlight, it could lead to talent drain, consolidation, and pressure on local agencies to scale up or pivot quickly.

“It’s easy to see this as a threat, but I believe it’s a moment of redefinition for independent agencies,” said Nagessh Pannaswami, Founder-Director, Curry Nation Brand Conversations. “Independent agencies hold something unique: cultural intimacy, agility, and the freedom to take risks. While the giants bring scale, independents can bring soul.” He means work that’s emotionally resonant, contextually sharp, and deeply rooted in local insight. According to him, there’s room for both models to thrive, especially in a market as layered and dynamic as India.

Sanjay Deshmukh, CEO, Garage Worldwide, agrees but notes the impact could be uneven.

“Nothing much will change for them — but the centralized media hubs might force homegrown mid-size digital media agencies to merge and consolidate… I see a lot of upheaval in really good talent moving from smaller agencies to bigger hubs and vice versa.”

According to him, on one hand, these developments reflect India’s ability to put together a strong digital infrastructure. On the other hand, they want to take advantage of our low-cost, experienced talent. The sole purpose is cost efficiency. “To my mind, the GCCs will serve more as information hubs based on data learning rather than strategic media planning hubs.”

Not an Easy Build

While India seems like a natural fit for global GCCs, building and sustaining them is not without its challenges.

One big hurdle is talent churn. With the mushrooming of GCCs across sectors, attracting and retaining top talent has become competitive and expensive – ironic, given that cost-efficiency is a key draw. Then there’s the matter of training. Not all global capabilities can be easily ported into Indian operations without significant investment in upskilling teams, especially in creative or culturally nuanced domains.

Infrastructure can also be a limiting factor, some believe. While metros like Bengaluru, Pune, and Delhi are well-equipped, scaling into tier-II cities, where cost savings could be even greater, requires navigating real estate, connectivity, and policy complexities.

“India has a rich tapestry of diverse talent… already a hub for digital marketing, programmatic advertising, content creation and AI-driven ad solutions. While our talent pool is technically skilled, they also bring strategic thinking and problem-solving abilities that make a real difference to global campaigns,” said Mathanda.

Yet, as Deshmukh points out, India may still fall short of becoming the creative nerve centre of the world.

“I doubt we can become a global creative hub. We’ll not be as effective as local creative talent when it comes to creating creative campaigns… India can be a creative powerhouse only if we attract global talent to work along with us…we need to create a proper ecosystem like Singapore, Dubai, HK, Shanghai… I don’t see Bombay being that city, but Delhi and Bangalore can be.”

Ultimately, the success of this GCC boom will not be judged by scale alone, but by the sophistication, agility, and creativity these centres are able to deliver consistently.

“The real test is whether these centres can deliver impact, not just output,” said Pannaswami. “If they succeed in doing that, they will redefine India’s role – from execution centre to global creative co-pilot.”

The future may be global. But right now, in the advertising world, all roads lead to India.

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