State incentives not enough for GCC scaling

A new analysis argues that state-level incentives, while attractive, are not enough for Global Capability Centres (GCCs) to scale successfully in India. The piece suggests that factors such as talent availability, infrastructure, ease of doing business, and long-term policy stability play a more critical role in GCC expansion decisions. As India competes with other global destinations for GCC investments, states must go beyond financial sops to create sustainable ecosystems that support innovation and growth. The article signals a shift in how GCCs evaluate locations, prioritizing operational maturity over short-term benefits. Key signal: State incentives alone are insufficient for GCCs to scale in India, highlighting the need for a broader ecosystem. For hiring leaders, this matters because for CHROs and GCC leaders, this underscores that talent strategy must be at the core of location decisions. While incentives can reduce initial costs, the ability to attract and retain skilled tech talent, build leadership pipelines, and foster innovation will determine long-term success. As GCCs scale in India, they need to look beyond state subsidies and invest in workforce development, upskilling, and creating compelling employee value propositions. This also implies that states offering robust talent ecosystems will win the race for GCC investments, making it imperative for companies to align their location strategies with talent availability. Teksands view: State incentives are the appetizer, not the main course. GCCs that scale in India will do so because they build deep talent ecosystems, not because they chased the highest subsidy. The real differentiator is the ability to hire, develop, and retain senior tech talent in a competitive market. For hiring leaders, this means doubling down on employer branding, career pathways, and upskilling—because the war for talent is won on the ground, not in government brochures.