NEW DELHI — More than 100 Japanese companies have established or expanded Global Capability Centers (GCCs) in India, increasingly using the facilities for artificial intelligence, engineering, cybersecurity and digital innovation rather than traditional back-office operations, according to a report released Wednesday.
The report by global real estate services firm Cushman & Wakefield highlights a shift in how Japanese corporations are approaching their Indian operations, with GCCs evolving into strategic hubs that support technology development, product innovation and broader business transformation.
Japanese companies are increasingly assigning sophisticated technical and business functions to their Indian centers, including advanced analytics, software engineering, product development and AI-driven solutions.
The shift reflects efforts by Japanese businesses to address domestic talent shortages, accelerate digital transformation and strengthen their global competitiveness.
“This is no longer a story of outsourcing,” said Arpita Srivastava, managing director of APAC Tenant Representation and GCC Advisory at Cushman & Wakefield.
“They are building strategic capability centres that create business value, drive innovation and support global transformation initiatives. India offers access to highly skilled engineering and digital talent, while providing the scale, infrastructure and ecosystem needed to support long-term growth,” she said.
India’s substantial supply of science, technology, engineering and mathematics graduates is a major attraction for Japanese enterprises seeking specialized talent.
According to the report, India produces an estimated 2.5 million to 2.8 million STEM graduates annually, providing companies with access to a large workforce capable of supporting advanced technology operations.
The country’s established technology clusters, modern office infrastructure and mature business ecosystem are also encouraging Japanese corporations to expand their presence.
Historically, many multinational companies established GCCs in India primarily to handle administrative functions, customer support and other cost-sensitive business processes.
However, these centers have increasingly taken on responsibilities involving research, engineering, software development and strategic decision-making.
For Japanese companies, the transformation means their Indian operations are becoming more closely integrated with global technology strategies and corporate innovation initiatives.
Srivastava said many Japanese businesses have moved beyond debating whether to establish operations in India and are now concentrating on how quickly they can expand their capabilities.
India’s combination of skilled professionals, established operational infrastructure and capacity for large-scale expansion makes it an attractive destination for companies seeking to build long-term technology operations, she said.
The report also identifies growing opportunities for collaboration between Indian technology professionals and Japanese companies in developing AI applications, advanced engineering solutions and digital products.
These partnerships could help Japanese businesses accelerate innovation while creating more specialized employment opportunities in India’s technology sector.
“The next wave of GCC growth will be defined by AI, engineering excellence, innovation and co-creation, and Japanese companies are already moving decisively in that direction. This relationship is evolving into a strategic innovation partnership built on shared expertise, long-term investment and sustainable growth,” Srivastava said.
The findings underscore India’s expanding role in global corporate technology development as international companies increasingly view the country as a center for innovation rather than simply a destination for lower-cost business services.
For Japanese enterprises, the growing network of Indian capability centers represents a longer-term strategy to strengthen technological expertise, overcome workforce constraints and develop new products and services for international markets. (Source: IANS)
