India’s GCCs move up the value chain to build products for global markets

A global capability centre, or GCC, is an India-based operation that supports a multinational company’s global business. In this article, GCCs are closely linked to research, development, engineering, and innovation. They help companies solve complex problems and create products for markets around the world.

Their work can range from software development to designing medical equipment, aviation systems, and vehicle technologies. Siemens Healthineers, for example, has around 50% of its software professionals in India. Mercedes-Benz Research and Development India works on vehicle systems, including digital head units.

The important change is ownership. Indian teams are moving beyond instructions from global headquarters. They are gaining product knowledge, domain expertise, and responsibility for complete systems or subsystems. This lets GCCs contribute intellectual property and product decisions, not just deliver services. The article presents this as India’s move up the technology value chain.

India’s GCCs are moving beyond technology-services work by taking ownership of broader engineering challenges. Instead of waiting for daily instructions, teams are being asked to understand the problem, design a solution, and manage larger parts of the product. This matters because ownership builds deeper expertise and strengthens India’s role in innovation.

Mercedes-Benz Research and Development India illustrates the change. Manu Saale described a move from solving assigned tasks to asking, “What’s the big problem?” Indian engineers can now take responsibility for entire systems and subsystems, including vehicle head units. Their growing product and systems knowledge also enables stronger discussions with global headquarters.

The same pattern appears in healthcare and aviation. Siemens Healthineers co-creates products with Indian customers, while Lufthansa Systems draws on India’s engineering and automation ecosystem. These examples show GCCs becoming problem-solving and product-development centres, rather than simply execution locations.

The shift is already substantial. Kalavathi cited Nasscom data showing that 39% of GCCs in India are involved in product development, including product management. Around 9% are transformation hubs. These figures show that many centres are moving beyond support work and participating in higher-value innovation.

Siemens Healthineers provides a concrete example. Its C-arm imaging system was conceptualised, designed, and manufactured in India for local healthcare needs. The product later expanded to 40 other markets and reached an installed base of 1,400 units. It demonstrates how solving an Indian problem can produce a globally useful product.

Other indicators show growing capacity. Around 50% of Siemens Healthineers’ software professionals are based in India. Lufthansa Group already has more than 1,000 employees in India, while Bengaluru’s aviation and aerospace ecosystem supports Lufthansa Systems’ engineering work. Together, these examples point to expanding product ownership.

Products must fit the conditions in which people will use them. Healthcare needs vary by lifestyle, disease prevalence, affordability, and access to care. India also has a varied system that includes private hospitals, government facilities, and district clinics. A product designed for a developed market may therefore be too costly, inaccessible, or poorly suited.

Siemens Healthineers first tried adapting products by removing features. That approach did not adequately meet India’s diverse needs. The company instead worked with Indian clinics, hospitals, and customers to co-create solutions. Its C-arm imaging system was conceptualised, designed, and manufactured in India around those local requirements.

The local approach produced a wider benefit. The C-arm system now serves 40 other markets and has an installed base of 1,400 units. This shows that local design is not only about making products cheaper or simpler. It can reveal useful solutions for global customers with similar needs.

Complete product ownership changes India’s economic role. Instead of mainly executing work designed elsewhere, Indian teams can define problems, create solutions, and develop intellectual property. This matters because product decisions, engineering knowledge, and innovation remain connected to teams in India. The country becomes a source of global products, not only a source of technology services.

The Siemens C-arm system shows how this works. Indian teams co-created it with local healthcare customers, then conceptualised, designed, and manufactured it in India. The product reached 40 other markets and 1,400 installed units. Mercedes-Benz is also expanding Indian responsibility for systems and subsystems, including vehicle head units.

The broader implication is greater capability and influence. Engineers gain product and domain knowledge, allowing them to engage headquarters at a higher level. Saale argues that India should own the entire technology stack and build products for domestic and export markets. The article presents this as India’s move up the value chain.

Customers and domain experts help GCCs find problems that ordinary technology development might miss. Hospitals, clinics, clinicians, and other users understand practical needs such as affordability, access, workflow, and reliability. Startups are not discussed in the provided article, so their specific contribution cannot be established from this source.

Siemens Healthineers began working with Indian clinics, hospitals, and customers to co-create solutions. This replaced the earlier approach of adapting developed-market products by removing features. The resulting C-arm imaging system was designed and manufactured in India. Its design reflected local healthcare conditions and the needs of both patients and providers.

Domain expertise also matters outside healthcare. Lufthansa Systems says aviation engineers must focus heavily on validating changes because reliability is critical. Bengaluru’s aviation and aerospace ecosystem offers relevant expertise and partnerships. Together, customer feedback and specialist knowledge help GCCs define better problems, test solutions carefully, and build products that can travel beyond India.

Product development is the process of creating a solution for users, from understanding a problem through design and building. Intellectual property, or IP, is the original knowledge, design, software, or other innovation created through that work and owned by a company. The article links both ideas to India’s opportunity to build products and innovation for global markets.

Technology services traditionally involve executing work assigned by a client or headquarters. Product ownership goes further. Teams understand the customer, define the problem, design the solution, and take responsibility for systems or subsystems. Siemens’ C-arm system, conceptualised, designed, and manufactured in India, is an example of product development rooted in local needs.

The distinction matters because ownership builds deeper capability. Mercedes-Benz teams are moving from task-based execution to solving large problem statements. As engineers gain product knowledge and systems expertise, they can engage headquarters at a higher level. This supports India’s ambition to own the entire technology stack and create exportable products.