India’s Global Capability Centres (GCCs) have seen significant growth, with the total count rising to 1,700 in the fiscal year 2024, ending in March. These centres generated $64.6 billion in export revenue, marking a 40% increase from $46 billion in the previous fiscal year. Employment within GCCs has also surged, with over 1.9 million people currently employed, up from 1.66 million last year, according to the latest NASSCOM-Zinnov India GCC landscape report.
Key Highlights from the Report:
– The number of GCCs in India grew from around 1,580 in FY23 to 1,700 in FY24.
– The GCC market in India is projected to grow to $99-105 billion by 2030, with 2,100-2,200 centres employing 2.5-2.8 million people.
– India holds the title of the “GCC Capital of the World,” hosting 17% of global technology capability centres. The Americas lead with over 1,000 GCC units in India.
– Over 220 GCC units are located in emerging Tier-II and Tier-III cities, including Ahmedabad, Kochi, Thiruvananthapuram, and Coimbatore.
GCCs as Engines of Innovation
The report highlights that India’s GCC landscape has evolved significantly, with a shift from operational hubs to engines of innovation and strategic growth. “GCCs have rapidly evolved from being operational hubs to becoming true engines of innovation and strategic growth,” said Sindhu Gangadharan, chairperson at NASSCOM. She noted the maturity of these centres in digital capabilities, engineering excellence, and advanced technology solutions.
GCCs are now positioned to lead global agendas, secure critical managerial roles, and drive decision-making processes, setting India up to become a global leader in digital transformation and sustainable business practices.
Rise of Multi-Functional and AI-Driven GCCs
Between FY2019 and FY2024, more than 400 new GCCs and 1,100 new centres were established in India. Notably, over 90% of GCCs now operate as multi-functional centres, supporting technology, operations, and product engineering. The engineering, research, and development (ER&D) segment alone has grown 1.3 times faster than the overall GCC growth rate, contributing $36.4 billion in revenue.
AI and advanced technology capabilities are a growing focus, with more than 185 GCCs establishing dedicated AI and ML Centres of Excellence (COEs). These centres are exploring use cases in customer experience, risk assessment, demand forecasting, and more.
India’s Strategic Positioning for Future Growth
Pari Natarajan, CEO of Zinnov, described India as the nerve centre of global tech advancement, noting that India’s GCCs are driving high-value initiatives like Gen AI, automation, and productivity charters. He projected that by 2030, 70% of Fortune 500 companies will expand their presence in India, cementing the country’s role as a key player in the global tech narrative.
“As we look ahead to 2030, we expect that 70% of Fortune 500 companies will be expanding their presence to India. The writing is on the wall – India is no longer just participating in the global tech narrative – we’re authoring it,” Natarajan added.
With a strong focus on innovation, advanced technology solutions, and sustainable business practices, India’s GCCs are set to drive the next wave of global growth and digital transformation.