Definition
Global Capability Centers (GCCs) are strategic units established by companies to house critical functions such as R&D (Research and Development), IT (Information Technology), and BPM (Business Process Management) in locations different from their headquarters. These centers aim to leverage the local talent pool, technological advancements, and economic benefits to support a company's global operations.
Current Landscape in India (2023)
Number of GCCs: 1,580 established, housing over 1.66 million professionals.
Market Size: $46 billion, witnessing a CAGR of 11.4%.
New Entrants: 18 new GCCs set up in the first half of this year.
Geographic Dispersion
Tier 1 Cities: Previously dominated by cities like Bengaluru, Hyderabad, and Pune.
Tier 2 Cities: Now seeing substantial growth with cities like Vadodara, Nasik, and Coimbatore coming into the frame, especially in sectors like industrial, FMCG, and software.
Key Advantages of Setting up GCCs in India
Talented Workforce: A large pool of digitally skilled professionals readily available.
Innovation: A mature tech start-up ecosystem fostering innovation.
Leadership: Visionary leadership offering operational excellence.
Networking: A conducive peer GCC ecosystem available for collaborations and networking.
Industry Voices
Sukanya Roy, Head GCC and BPM at Nasscom: Highlights India's potential to transform into a premier hub for GCCs owing to digitally skilled talent, strategic location, and visionary leadership.
Mohammed Faraz Khan, Partner at Zinnov: Notes the enhanced role of India centers in automotive and aerospace sectors, moving from hardware-led to software-led engineering.
