India's Global Capability Centres (GCCs) to Reach New Heights by 2025

India Poised for Remarkable Growth in Global Capability Centres (GCCs), Projected to Reach 1,900 and Worth $60 Billion by 2025

Key Findings and Implications of the Report

According to a comprehensive report titled "GCC 4.0--India Redefining the Globalisation Blueprint," India is expected to witness a remarkable growth in the number of global capability centres (GCCs) by 2025. The collaborative research conducted by Nasscom and consultancy firm Zinnov reveals that India is set to host over 1,900 GCCs, employing approximately 2 million professionals, and having a collective market value of $60 billion. These GCCs serve as strategic hubs where various operational functions of organizations are managed, allowing them to develop capabilities, foster global leadership, and monetize services.

The CEO of Zinnov, Ms. Pari Natarajan, highlights India's pivotal role in the GCC 4.0 wave, emphasizing that Indian GCCs and their leaders are transforming the blueprint of globalization beyond mere cost and scale considerations. These GCCs are now playing an integral part in addressing new challenges across business, technology, and human resources for their headquarters.

India's attractiveness as a preferred destination for GCCs stems from its abundance of highly skilled professionals in engineering and digital domains, a thriving start-up ecosystem, and a well-established peer network. In the fiscal year 2023, India already housed 1,580 GCCs, with major multinational corporations choosing the country as their first location for establishing such centres. These GCCs are actively driving engineering expansion and collaborating on transformative projects with their global headquarters.

Although Tier-I cities currently account for about 90% of GCC talent, Tier-II and Tier-III cities are rapidly catching up. These locations offer significant value propositions for expanding analytics and operations teams, including operational convenience, cost advantages, and access to a pool of technically trained and affordable personnel.

Indian GCCs are serving as vital technological centres for their headquarters, with a talent pool of approximately 1.66 million professionals as of the fiscal year 2023. They specialize in cutting-edge technologies such as cloud computing, artificial intelligence, machine learning, natural language processing, cybersecurity, advanced analytics, cryptocurrency, and the Internet of Things. Furthermore, these GCCs play a crucial role in researching emerging technologies like Web 3.0, Digital Twins, and Metaverse on behalf of their parent organizations.

The report underscores the vast potential of India's artificial intelligence (AI) and machine learning (ML) talent pool, presenting a compelling opportunity for GCCs to establish dynamic Centres of Excellence (COEs). Currently, there are more than 210 GCCs and 315 centres with AI and ML capabilities, with the software, internet, and BFSI (banking, financial services, and insurance) industries

News Conclusion

The report "GCC 4.0--India Redefining the Globalisation Blueprint" highlights India's rapid growth and transformation in the global capability centre (GCC) landscape. With an estimated 1,900 GCCs projected by 2025, employing 2 million professionals and valued at $60 billion, India is poised to become a dominant player in this sector.

The appeal of India as a GCC destination lies in its highly trained engineering and digital skills, a mature start-up scene, and an advanced peer ecosystem. While Tier-I cities currently dominate the GCC talent pool, Tier-II and Tier-III cities are emerging as compelling options due to operational convenience, cost advantages, and access to skilled and affordable personnel.

Indian GCCs are not only supporting their headquarters' operations but also taking on strategic roles in solving new business, technology, and people-related challenges. They specialize in cutting-edge technologies such as cloud computing, artificial intelligence, machine learning, and cybersecurity, and play a crucial role in researching upcoming technologies like Web 3.0, Digital Twins, and Metaverse.

Moreover, the report highlights the growth of India's artificial intelligence and machine learning talent pool, providing a significant opportunity for GCCs to establish dynamic Centres of Excellence (COEs). The IT, BPM, and ER&D sectors have experienced substantial talent growth, with India's leaders now holding global portfolios in both business and technical roles.

Looking ahead, the projection of over 20,000 global roles from India by 2030, with women leaders accounting for around 30% of worldwide responsibilities, demonstrates the increasing prominence of Indian professionals in global GCC operations.

India's remarkable growth in GCCs signifies its transformation from a cost-driven destination to a hub of innovation, collaboration, and problem-solving. The country's strengths in skilled talent, technological expertise, and a conducive business environment position it as a key player in the global marketplace, redefining the blueprint of globalization in the process.