Global Service Centre in UP

• 08 May 2025

Why in News? 

To attract global investment, the Uttar Pradesh government has approved the Global Capability Centres (GCC) Policy. 

Key Points 

• About the Policy:  
  • The policy aims to drive UP toward its ambitious goal of becoming a USD 1-trillion economy. 
  • Officials expect the policy to attract global players in IT, banking, healthcare, engineering, and next-generation technologies. 
  • The policy offers attractive incentives and has been framed after studying global best practices. 
• Technologies Covered by GCCs: 
  • GCCs being set up in UP include cutting-edge domains such as: 
    • Artificial Intelligence (AI) 
    • Machine Learning 
    • Cloud Computing 
    • Cybersecurity 
    • Robotic Process Automation 
    • Engineering design and development 
• Sectors and Companies Already on Board: 
  • Global firms in banking, financial services, insurance, automotive, electronics, and semiconductor manufacturing have begun operations in UP. 
  • Microsoft has laid the foundation for a 10,000-seater development centre in Noida. 
  • MAQ Software has set up a 3,000-seater engineering centre. 
  • The state is also working to attract GCCs to Varanasi, Kanpur, and Prayagraj, alongside Noida and NCR. 

Global Capability Centers (GCCs) 

• GCCs represent offshore establishments set up by companies to deliver a range of services to their parent entities. 
• Operating as internal entities within the global corporate framework, these centres offer specialised capabilities including IT services, research and development, customer support, and various other business functions. 
• GCCs play a crucial role in capitalising on cost efficiencies, tapping into talent reservoirs, and fostering collaboration between parent enterprises and their offshore counterparts. 
• Special Economic Zones (SEZs) can provide a fertile ground for GCCs to flourish by offering several advantages like tax breaks, simplified regulations and streamlined bureaucracy.