Once considered back offices catering to Fortune 500 companies, Global Capability Centres (GCCs) in India have undergone a remarkable transformation in recent years. These centres have evolved into tech powerhouses, seamlessly integrating with their parent enterprises and becoming strategic assets providing access to digital talent at scale. This shift has reshaped the perception of GCCs within the Indian tech industry, positioning them as global hubs of strategic operations.
Nearly 40 years after Texas Instruments established its R&D operations in Bengaluru, Indian GCCs have created a compelling story for global companies to acknowledge India’s enviable tech talent pool. This has led to a significant increase in tech jobs in India and solidified the country’s position as a hub for advanced technological development.
The growth of GCCs in India is evident in the numbers. Currently, there are about 1,600 GCCs in the country, with this number expected to rise to 1,900 by next year. According to a Nasscom-KPMG report, the combined market size of GCCs in India is now $60 billion, showing a substantial increase from $19.6 billion in 2014-15. GCCs have added over 6 lakh new jobs between 2018-19 and 2023-24, bringing the total job count to over 16 lakh or 1.6 million.
The Economic Survey projects a bright future for GCCs in India, estimating that by 2030, they will contribute a total revenue of $121 billion, with $102 billion coming from exports. Companies like JPMorganChase and Goldman Sachs have significantly expanded their operations in India, with a focus on technology-driven functions.
GCCs in India have also emerged as innovation hubs, driving cutting-edge work in various sectors. For example, Texas Instruments India enables end-to-end chip design, while Goldman Sachs‘ India centre developed a low-latency trading platform called Atlas. GE Aerospace’s engineers in Bengaluru are involved in advanced work on the future of aviation, showcasing the diverse capabilities of GCCs in India.
As GCCs in India move up the value chain, they are increasingly incorporating corporate functions, analytics, and AI into their operations. This shift is creating opportunities for future leadership and enhancing the overall impact of GCCs on their parent enterprises. With a focus on nurturing advanced skills and deep domain expertise, GCCs are reshaping global markets and becoming talent hotspots in areas like full-stack development, AI, IoT, and automation.
GCCs in India have also emerged as good paymasters, offering competitive salaries to top leaders and executives. Roles like CIO, CTO, CFO, and chief procurement officer are increasingly being based out of India, with individuals from GCCs assuming these key positions within their organizations.
Overall, the evolution of GCCs in India has been remarkable, with these centres playing a crucial role in driving innovation, creating jobs, and positioning India as a global leader in technology and digital talent. As GCCs continue to grow and expand their capabilities, they are set to shape the future of the tech industry in India and beyond.