EPC and EPCM firms are at the forefront of executing projects to drive targets towards net-zero emissions. Global Capability Centres (GCCs) in India can play a pivotal role in advancing engineering services to drive the global energy transition. These centres leverage cutting-edge technologies and skilled talent to deliver innovative solutions in renewable energy, greener technologies, and decarbonization. Indian GCCs with their expertise in managing complex projects and providing cost-effective, high-quality solutions are increasingly becoming strategic hubs for global energy firms.
Role of Indian GCCs in Energy Transition
Massive investments in the range of 4-6 trillion dollars are required if the world has to meet the Net Zero commitments by 2050. Besides substantial additions in renewable power capacities and their associated infrastructure, investment is also required in decarbonisation technologies like green hydrogen, green ammonia, sustainable aviation fuel and Carbon Capture Utilisation and Storage (CCUS). For these investments to come to fruition, corresponding capacity building is required in EPC and EPCM business. India through its growing Global Capability Centres can hope to carve out a healthy slice of this pie.
Energy Transition and EPC Opportunities
The global commitment to achieving net-zero emissions has intensified investments in green hydrogen, sustainable aviation fuels (SAF), carbon capture, utilisation, and storage (CCUS), and biofuels. These developments present significant opportunities for Engineering, Procurement, and Construction (EPC) and Engineering, Procurement, and Construction Management (EPCM) companies.
This surge encompasses large-scale developments in green hydrogen, green ammonia, sustainable aviation fuel, and carbon dioxide capture technologies. Concurrently, ageing refining and petrochemical facilities necessitate modernisation through advanced technologies. EPC and EPCM firms are at the forefront of executing these projects, each delivery model offering distinct advantages and challenges. However, the unprecedented scale of these initiatives demands significant capacity building within EPC and EPCM companies, which are already grappling with heavy workloads and a critical shortage of skilled talent.
The global EPC market was valued at approximately USD 792.7 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 5.7%, reaching USD 1,380 billion by 2032. This growth is driven by increased investments in infrastructure and energy projects, particularly those focused on sustainability and decarbonisation.
India’s Growing GCCs
Global Capability Centres (GCCs) in India emerged in the late 1980s and early 1990s, primarily driven by multinational corporations looking to establish offshore IT and back-office operations. In the 2000s, the rise of IT services and the success of Indian software firms, like Infosys and TCS, encouraged more MNCs to establish captive centres for software development, IT support, and analytics. In the 2010s, the focus expanded beyond IT to include engineering R&D, digital transformation, and innovation labs. Today, India is a key hub for GCCs across industries like pharmaceuticals, manufacturing, and financial services, with increased specialisation in AI, automation, and sustainability-driven solutions.
India is the world’s largest GCC hub, housing over 1,950 centres and employing 1.3 million people. These centres operate across diverse sectors, including technology, engineering, consulting, manufacturing, and BFSI, leveraging the country’s skilled workforce, cost advantages, and government support. Major hubs such as Bengaluru, Hyderabad, Delhi NCR, Mumbai, Pune, and Chennai offer the infrastructure and talent access that global firms seek. US-based companies dominate the GCC landscape, followed by European firms, which account for 35 percent, while APAC-based centres are expanding steadily. The total office space occupied by GCCs across India’s top seven cities has now exceeded 240 million square feet, with further growth anticipated.
India’s appeal as a GCC destination is driven by several factors. The country produces a vast pool of highly skilled graduates in engineering, technology, and business, equipping global companies with the expertise needed for a wide range of services. Cost efficiency remains a major advantage, as operating expenses—including salaries and real estate—are significantly lower than in developed nations. Additionally, the Indian government actively supports the expansion of GCCs through policies that promote foreign investment, the establishment of special economic zones, tax benefits, and incentives for innovation and R&D.
ExxonMobil’s Example
ExxonMobil is leveraging its Indian Global Capability Centre in Bengaluru to drive energy transition and decarbonisation efforts. Through its Bengaluru Technology Centre (BTC) and Bengaluru Research and Development Technology Centre (BRDTC), the company taps into India’s engineering and scientific talent to support global initiatives.
Established in 2017 with a small team, BTC has expanded to over 900 technologists working across various disciplines. These experts provide critical support to ExxonMobil’s oil and gas operations worldwide, from Guyana to Australia. The centre also plays a key role in advancing carbon capture and storage (CCS) initiatives in the U.S. while laying the foundation for similar projects, including hydrogen solutions, in the Asia Pacific region.
In parallel, BRDTC focuses on improving the recyclability of plastics and rubber. Over the past 25 years, it has nurtured Indian innovation to develop stronger, more sustainable materials, benefiting both India and global markets. By harnessing India’s technical expertise, ExxonMobil is accelerating the development of lower-emission fuels and sustainable technologies while also addressing plastic waste challenges.
GCC Services for Energy Transition
As global energy companies accelerate their transition to renewables, green hydrogen, carbon capture, and sustainable fuels, they require significant engineering and design expertise. India’s GCCs are well-positioned to offer services that include:
- Simulation studies for process intensification and optimisation
- Basic and extended basic engineering
- Front End Engineering Design (FEED)
- Detailed engineering
- Building Digital Twins
- Procurement and Inspection services
- Construction management
- Document management through Building Information Modelling (BIM)
- Engineering management
- Project management
- Start-up assistance
Domestic Benefits
While India is poised to serve global markets through its emerging role in the energy transition, it stands to gain significantly on the domestic front as well. By integrating global best practices, India can enhance its own renewable energy, green hydrogen, and biofuel initiatives, improving efficiency and accelerating deployment.
India’s well-established low-cost manufacturing ecosystem provides a strong foundation for scaling clean technologies. The production of critical components such as electrolysers for hydrogen generation and advanced battery storage systems can be expanded rapidly, reducing dependence on imports and driving cost reductions. This, in turn, will make clean energy solutions more accessible within the country.
Additionally, if global firms establish technology hubs alongside their GCCs in India, investment in energy research and development (R&D) could see a substantial boost. This would not only enhance innovation in clean energy solutions but also foster the development of home-grown expertise in cutting-edge technologies, positioning India as a leader in the global energy transition.
Risks and Challenges
As Indian GCCs work with diverse global markets, they will need to navigate different regulatory frameworks governing renewable energy and carbon policies. This will necessitate the creation of specialised compliance teams to manage risks and ensure adherence to international standards, adding operational complexity.
Despite these challenges, India’s ability to leverage its cost advantages, manufacturing capabilities, and growing innovation ecosystem could make it a key player in the global and domestic clean energy transition.
Epilogue
India’s role as a Global Capability Centre will be a key enabler of the energy transition, helping to drive down costs, improve efficiency, and plug the engineering talent gap worldwide. However, to maximise its impact, India must enhance technical education, retain top talent, and build deeper expertise in emerging clean technologies.
Readers’ responses may be sent to: k.sahasranaman@gmail.com or chemindigest@gmail.com
