How Nordic Firms are Using their India GCCs to Chase Innovation

Streamlining regulations is key as Nordic firms look to expand their GCC footprint in India.

19 JUNE 2025  /  3 min read

While American firms dominated India’s Global Capability Centre (GCC) landscape with more than two-thirds of office leasing activity in 2024, Nordic companies, by contrast, are steadily and strategically growing their presence, investing in long-term innovation capabilities. Reason? India’s vast and highly skilled tech workforce, AI, data analytics and engineering capabilities, and a cost advantage of up to 40% compared to Eastern Europe.

A recent report by Nasscom reveals that case studies of Nordic companies show how these firms leverage India’s readily available tech talent and ecosystem to accelerate innovation and enhance global responsiveness. For example, Ericsson’s Bengaluru GCC, specialising in 5G and AI-driven telecom R&D and Nokia’s Noida center, focused on network infrastructure and IoT, highlight how both companies have utilised India’s capabilities to anchor global R&D, product development, and digital transformation.

Over the last few years, the GCC facilities of Nordic firms, equipped with state-of-the-art testing environments, have become central to their global innovation roadmaps. 

Drawing on India’s engineering talent and urban infrastructure boom, it’s here that cutting-edge safety algorithms, digital control systems, and sustainability enhancements are engineered before they debut worldwide.

Besides India’s talent pool of over 500,000 IT engineers and a thriving startup ecosystem specialising in technologies such as AI, IoT, edge computing, and smart connectivity which align with Nordic priorities in telecom, sustainable tech, and other core areas—the country’s fast-growing economy also offers Nordic firms a strategic gateway to other emerging Asian markets. 

The Nasscom report titled “Nordic Companies Leveraging Global Capability Centers in India” points out that collaborations like the India-Sweden Innovation Partnership and Nordic summits have deepened ties between the regions. Initiatives like the Joint Declaration on Innovation Partnership for a Sustainable Future foster cooperation in smart cities, green energy, digitalisation, and health sciences—creating a robust environment for innovation-led GCCs.

With India’s deep expertise in IT, AI, analytics, and engineering, and its alignment with Nordic values of innovation and sustainability, an increasing number of Nordic companies are choosing India to establish their GCCs. These centres now serve as brain trusts, driving not just back-office operations but cutting-edge research, digital transformation, and product innovation for global markets.

With over 1,700 GCCs in India, employing approximately 1.9 million professionals and generating more than US$64 billion in exports, GCCs are becoming strategic innovation partners for global corporations. The GCC sector in India is expected to grow beyond US$100 billion by 2030. 

However, despite the GCC boom, Nordic companies face their share of challenges while operating in India. Cultural differences create communication gaps and misaligned expectations due to contrasting work styles. Additionally, India’s complex regulatory framework around foreign direct investment policies, labour laws, taxation, and compliance, can be daunting. Establishing dedicated compliance teams helps ensure timely adherence to policies and anticipates regulatory changes. Early and thorough due diligence before entering new markets can further reduce risks associated with regulatory complexity, noted the Nasscom report, adding that by 2030, Norway and Iceland are expected to set up GCCs in India.

The report further highlights that while Norway may focus on maritime and energy technologies, Iceland could develop green-tech facilities. Sweden’s success in automotive and telecom GCCs will serve as a model, encouraging more Nordic collaboration. 

The ramping up of GCCs by Nordic firms reflects a strategic shift: from viewing India as a cost-effective support base to recognising it as an innovation hub driving global strategies.