When IPG Mediabrands, the media holding company within Interpublic Group, announced the opening of its new global Centre of Excellence office in Pune, it signalled a significant shift in industry dynamics.

Long (relatively speaking) viewed as a global centre for IT, services, and software development, India has been a favourite host for Global Capability Centers (GCCs) for IT companies and tech giants . And now marketing giants are setting up shop too.

A recent Nasscom-KPMG report stated that the market size for GCCs has gone up to $60 billion, up from $19.6 billion in 2014-15 and more than doubling to $46 billion in 2022-23, reflecting an 11.4% compound annual growth rate (CAGR).

There are around 1,600 Global Capability Centres (GCCs) in India at present, a number expected to rise to 1,900 by next year.

Apart from IPG, several other leading advertising firms have either already established GCCs in India, or are in the process of doing so. These centres are integral to delivering end-to-end advertising solutions, from creative strategy and execution to performance analytics and reporting.

According to Ramya Parashar, Chief Operating Officer (COO) of MiQ, India’s vast talent pool, lower operational costs, and expertise in cutting-edge technologies like Artificial Intelligence , Machine Learning, and data analytics make it an ideal choice for setting up such centres.

“Having their offices in these centres assists in the implementation of core business strategies including advertising and marketing, data analysis and innovation hub,” she stated. She pointed out that Indian-based GCCs are not only managing global advertising tasks such as campaign management and media planning but are also driving innovation through the use of quantum technologies.

Santosh Gannavarapu, Chief Growth Officer, Merkle Sokrati, opines that beyond cost-arbitrage it is the abundance of home-grown and highly skilled talent available, resulting in providing not just cost benefit but intellectual benefit to multiple facets of advertising and marketing.

“Such was not the case a decade ago. And the growth has come from the diversity in the Indian companies that need this skill. This skill was thus nurtured bringing in creativity and math. And thus, an Indian marketer now not only uses art but science to betterment in campaigns,” he says, adding that this talent pool is destined to increase and will further create better opportunities in the global space.

India’s role in the Asia-Pacific (APAC) region is especially critical, as it contributes to regional marketing strategies, factoring in consumer behaviour, culture, and legal requirements.

Abhinay Tiwari, Chief Growth Officer, Admattic, says the global performance marketing solutions provider has observed this new role reflected in its clients’ strategies. “For our clients, establishing or expanding GCC operations in India have been a game-changer. It allows them to tap into the vast consumer base of the APAC region, leveraging India’s unique position at the crossroads of cultural diversity and technological advancement.”

This enables them to create campaigns that are both innovative and resonate deeply with local audiences. “Additionally, India’s role as a GCC in advertising and marketing aligns with the global shift towards digital-first strategies,” he adds.

Parashar emphasizes the importance of Indian professionals in emerging fields like programmatic advertising , marketing automation, and customer intelligence through AI, saying, “India’s highly skilled talent pool trend shows a rising number of Indian professionals that are visible in these emerging kinds of marketing.”

Prashant Ray, Director of Marketing for Asia, Channel Factory, drawing from his own experience based in Gurgaon, where he leads marketing for the U.S.-based company across the Asia region, says, there are several reasons for this preference for India.

“Having previously served as the Global Marketing Head for an emerging AdTech company, I've witnessed firsthand how India’s growing digital economy and talent pool are attracting global companies to establish or outsource operations here, solidifying India's position in the global advertising landscape,” he says.

Experts also touched upon the booming digital marketing ecosystem in India, noting the influx of funding for AdTech firms that are innovating in areas like programmatic advertising and digital media trading for the global market. Indian GCCs are managing complete internet marketing campaigns for international brands.

However, emerging regulations such as India’s recently passed DPDP Bill present both challenges and opportunities, as these laws are prompting firms to rethink their marketing strategies to comply with stricter data privacy standards.

This is why India is seen as a strategic node in APAC operations, offering firms a strong position to expand across Asian markets while helping them navigate the complex landscape of regional marketing.

“India shows the increased role of the state in the globalization process given its accomplished human capital, strong on technology, and more importantly, its geographically advantageous phase to propel the knowledge economy in advertising and marketing of multinational companies,” concludes Parashar.