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India is poised to become a global powerhouse for Global Capability Centers (GCCs), with a projected 2,100-2,200 GCCs operating in the country by 2030, according to a recent report by Zinnov and Nasscom. This surge in GCC activity is expected to generate a staggering 2.5-2.8 million jobs, further solidifying India's position as a leading destination for global businesses seeking to establish offshore operations. The report, which analyzes the GCC landscape in India over a five-year period, highlights the remarkable growth of this sector, driven by factors such as India's robust talent pool, competitive cost structure, and supportive government policies.
The GCC boom in India is evident in the rapid increase in the number of these centers. Between FY19 and FY24, over 400 GCCs and 1,100 new centers have been established, bringing the total to over 1,700. These centers are not only creating jobs but also generating significant revenue. In FY24, GCCs in India generated $64.6 billion in export revenue, highlighting their substantial contribution to the country's economic growth. Furthermore, the average GCC talent pool has expanded by 24% since FY19, with an estimated workforce of over 1,130 employees per center in FY24. This demonstrates the expanding scope and complexity of operations within these centers.
The report emphasizes India's emergence as the 'GCC Capital of the World,' with a 17% share of global GCCs. While the Americas still dominate with over 1,000 GCC units, India's rapid rise is undeniable. This growth is not limited to large enterprises; mid-market companies and unicorns are increasingly setting up shop in India, with around 40 global unicorns having an India GCC presence in 2024. The spread of GCCs is also extending beyond traditional hubs, with over 220 units located in Tier-II and Tier-III cities, including Ahmedabad, Kochi, Thiruvananthapuram, and Coimbatore, fostering economic development in these emerging locations.
The evolution of GCCs in India is not merely about providing cost-effective operational support; they are transforming into centers of innovation and strategic growth. The report notes that almost 53% of GCCs in India have reached the Portfolio and Transformation Hub stages, indicating a shift towards higher-value activities. This is particularly evident in the Engineering Research and Development (ER&D) GCCs, which contributed $36.4 billion in revenue and grew 1.3 times faster than the overall GCC growth rate. India's role in global engineering is also expanding, with over 6,500 global positions based in the country, including nearly a quarter of all global engineering roles. This demonstrates India's growing expertise in cutting-edge technologies across industries like aerospace, defense, and semiconductors.
The report underscores the strategic importance of GCCs in India's economic future. These centers are poised to lead global agendas, secure critical managerial roles, and shape decision-making processes, setting the stage for India to become a global leader in digital transformation and sustainable business practices. As GenAI, automation, and productivity charters become increasingly important, GCCs in India are playing a pivotal role through the Centers of Excellence (CoE) model. By 2030, the report forecasts that 70% of Fortune 500 companies may expand their presence in India, further strengthening the country's position as a global hub for GCC operations.
The growth of GCCs in India is a testament to the country's skilled workforce, supportive ecosystem, and strategic focus on innovation. With a projected market value of $99-105 billion by 2030, the GCC sector in India is set to play a significant role in driving economic growth, creating jobs, and fostering technological advancements. As these centers evolve into true engines of innovation and strategic growth, India is well-positioned to become the global leader in digital transformation and sustainable business practices.
Source: India to host 2,200 GCCs by 2030, generating 2.8 million jobs says report