India’s economic rise in recent decades can be attributed in part to a powerful force: Global Capability Centres (GCCs). These innovation hubs have transformed from back-office operations into strategic engines, propelling India’s Gross Domestic Product (GDP) and shaping the future of work.
India’s vast pool of skilled professionals, estimated at over 5.4 million in the IT industry alone, initially made it a magnet for GCCs. But the story goes beyond cost-effectiveness. Today, GCCs are hotbeds for cutting-edge advancements in areas like Artificial Intelligence (AI), data science, and engineering. This focus on innovation positions India as a global leader in digital capabilities, attracting major corporations seeking a competitive edge.
It goes without saying that GCCs are bringing global work culture and innovations to India. Many start-ups are following this trend and adopting the same culture. Talents from GCCs are being hired to keep up with the pace and stay ahead of the curve. This movement isn’t just beneficial for start-ups but also serves a greater purpose. Without these developments, India would not be on its way to becoming a global hub for innovation and start-ups.
The impact of GCCs is undeniable. They contribute a significant chunk – around $33.8 billion in 2020, according to a Nasscom Deloitte study – to India’s GDP, and this figure is projected to climb even higher, with a potential revenue of $80 billion in the coming years as per a Deloitte report. This translates to real progress, with GCCs creating a staggering 1.66 million jobs across diverse industries, representing roughly 30% of the total IT industry workforce in India.
The influence of GCCs isn’t limited to major cities like Bengaluru, Mumbai, and Delhi-NCR. By establishing centres in tier-2 and tier-3 cities like Ahmedabad, Mysuru, Vadodara, Nashik, Tirunelveli, Bhubaneswar, and Coimbatore, GCCs are fostering balanced development across India. This expansion creates job opportunities, stimulates local economies, and paves the way for improved infrastructure in these regions. As of now, around 150 of the over 1,500 GCCs in India are located in tier-2 cities.
Challenges like talent retention and evolving regulations exist, but the future of GCCs in India is optimistic. With projections indicating a potential revenue of $80 billion and an employee base exceeding 2 million professionals by 2030, as per EY reports, GCCs are poised to be a cornerstone of India’s economic journey.
GCCs are more than just economic drivers. They are transforming the way India works. By offering diverse career paths, from entry-level roles to specialised positions in cutting-edge fields like data science, AI, machine learning, and advanced engineering, GCCs are redefining India’s talent utilisation. This not only empowers individuals but also positions India as a global hub for skilled professionals, with a growing presence of Indian-origin executives in leadership positions at global firms.
India’s story of economic progress is intricately linked to the rise of GCCs. These dynamic centres are not merely contributors, but true catalysts for change. By fostering innovation, creating jobs, driving regional development, and nurturing a highly skilled workforce, GCCs are propelling India towards a future fuelled by digital prowess and global competitiveness.
This article is authored by Anshuman Das, CEO and co-founder, Careernet.
