India to have 1,900 GCCs, market to be worth US$ 60 billion by 2025: Report

According to a report, "GCC 4.0--India Redefining the Globalisation Blueprint" India will have over 1,900 global capability centres (GCCs) by 2025, employing 2 million people and an estimated value of US$ 60 billion. Nasscom, collaborated with consultancy firm Zinnov to produce the research.

According to the report, Indian GCCs are locations where a variety of an organization's operations are managed and are intended to establish capabilities, cultivate global leadership, and monetize services. According to the CEO of Zinnov, Ms. Pari Natarajan, “India is at the epicentre of the GCC 4.0 wave, where India GCCs and their leaders are redrawing the blueprint of globalization by going beyond a cost and scale retrospective. They are helping their Headquarters solve new problems across business, technology, and people”.

According to the report, India is an appealing destination for GCCs due to its highly trained engineering and digital skills, mature start-up scene, and advanced peer ecosystem. In FY23, India had 1,580 GCCs, with major multinational MNCs choosing to create their first such centre in the country. These GCCs are pushing engineering expansion and co-piloting transformation projects with their headquarters.

While Tier-I cities house around 90% of the GCC talent, Tier-II and Tier-III cities are catching up. As compelling value propositions for expanding analytics and operations teams, these locations offer operational convenience, cost advantages, and access to a pool of technologically trained and affordable personnel.

GCCs in India are serving as core technological centres for their headquarters, with around 1.66 million installed talent pool as of FY23. They specialise in cloud, artificial intelligence, machine learning, and natural language processing skills. Other examples include cybersecurity, advanced analytics, cryptocurrency, and the Internet of Things.

India GCCs are also essential in researching upcoming technologies such as Web 3.0, Digital Twins, and Metaverse for their parent organisations. According to the report, India's abundant artificial intelligence (AI) and machine learning (ML) talent pool present an intriguing opportunity for GCCs to develop dynamic Centres of Excellence (COEs). Today, there are over 210 GCCs and 315 centres with AI and ML capabilities, with the software, internet, and BFSI industries leading the way in these tech-focused COE projects.

Over the last two years, the influence of ER&D has been unstoppable, with the sector accounting for more than 42% of total talent growth. The IT and BPM industries have also seen significant talent growth, with IT talent expanding at a CAGR of 9.8% and BPM talent growing at a CAGR of 10.8%. Interestingly, BPM accounts for more than one-third of overall talent added in the last two years.

According to the research, Indian leaders are now in charge of global portfolios in both business and technical roles. Global roles from India are expected to grow at a 19% CAGR, resulting in an estimated 20,000 jobs by 2030. In 2022, there will be over 5,000 global roles in India, with women leaders accounting for 18% of the total. It is also expected that by 2030, this ratio will have risen, and women leaders will account for around 30% of worldwide responsibilities.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.