The latest numbers on the GCC growth story are mind boggling. Between FY 2015 and 2023, this market has grown to $46 Bn. India is home to 1580+ Global Capability Centers (GCCs), employing more than 1.73 million talent across its 2740+ units. It is estimated that in the next three years, 500 GCCs would make India their home.
Over a span of two years, companies with APAC HQs have seen the maximum number of GCCs being set up, recording a growth of 51% increase in the number of centers being set up. 46% of centers boasts of capabilities in R&D, BPM and IT. This has also meant that rise of multi center GCCs are trending : 3% increase in such centers, versus a decline of 12% for single site centers.
The nature of GCCs has undergone a paradigm shift. What started as low-cost arbitrage centers, have transitioned from providing engineering solutions to becoming innovation hubs, some going as far as to become the hubs for next generation intellectual property (IP) development. Cloud native platforms, Intelligent Automation, Artificial Intelligence and Cybersecurity are the hottest skillsets which India is able to add to the talent pool, while remaining cost competitive.
India's GCC industry is experiencing significant growth primarily due to the country's increasing global competitiveness in key areas. These include the abundance of highly skilled tech talent, substantial enhancements in India's digital infrastructure, a thriving start-up ecosystem, and a growing entrepreneurial culture. The Indian government is actively focused on policy-making that promotes digital transformation and enhances the manufacturing sector's capabilities. Consequently, the engineering R&D capability centres within India's GCC sector have witnessed remarkable growth.
One of the key advantages India possesses is its vast pool of high-quality tech talent, which is available at a competitive cost compared to other countries. This factor makes offshoring GCC services to India a sustainable choice in the foreseeable future. Furthermore, India's economy is witnessing a rise in its global competitiveness, contributing to the country's overall growth in the GCC industry. The availability of large tech talent, coupled with India's progress in digital infrastructure and its supportive ecosystem for start-ups and entrepreneurship, further reinforces its position as a preferred destination for GCC services.
Policies such as Digital India, national fibre optics initiative (BharatNet), new National Education Policy 2020 (aims to include Artificial Intelligence in school curriculum, etc. are) etc. are all welcome steps to integrate technology in the country’s future growth strategy.
There are significant implications for the talent landscape for India, and that includes assimilation of a multi-generational workforce, integration of Gig economy, strong focus on Diversity and Inclusion, and as high as 20,000 global leadership roles to be based in India by 2030.
If you are looking to start or scale up your GCC presence in India and are looking to partner with a strategic talent partner, Antal is here to help. Having supported 15+ GCCs in their business-critical hiring needs across technology and support functions, #ThinkGCCThinkAntal.
Credit: Data drawn from NASSCOM GCC report 2023