India has established itself as a global hub for Global Capability Centers (GCCs), with over 450 Global 2000 companies operating across 825 centers. According to the ANSR Q3 GCC Report, this dynamic ecosystem encompasses large corporations, mid-market players, and smaller enterprises, reflecting a rich and diverse landscape. The report highlights India’s strong service provider network, innovative startups, skilled workforce, and supportive government policies, all contributing to the acceleration of GCC growth. Predictions indicate that by 2030, India could host around 620 Global 2000 enterprises, underscoring the country’s increasing significance in the global market. As competition for talent intensifies, GCCs are urged to invest in cultivating a positive work culture and enhancing their overall value proposition. As of 2024, these centers employ nearly 1.3 million professionals, showcasing India’s growing prominence as a center for innovation and operational excellence.
Growth and Expansion of GCCs in India
The growth of GCCs in India has been remarkable, with a 32% increase in companies within the last five years, rising from 340 to over 450. Notably, Bengaluru stands out as the leading GCC hub, hosting more than 285 Global 2000 companies and employing over 560,000 professionals. Following Bengaluru is Hyderabad, home to over 110 Global 2000 companies, employing more than 190,000 professionals. This city is emerging as a key player due to its rich talent pool, advanced infrastructure, and supportive government policies. Additionally, non-metro cities like Ahmedabad, Vizag, Trivandrum, Kolkata, Bhubaneshwar, and Coimbatore are gaining attention as emerging GCC locations. As of 2024, North American firms account for about 60% of the total GCC share in India, indicating a strong preference for the country as a strategic operational base. Moreover, more than 125 GCCs are from Europe, further solidifying India’s role in global enterprise landscapes.
Trends in GCC Operations and Workforce Development
The Banking, Financial Services, and Insurance (BFSI) sector leads in GCC operations, followed by Manufacturing and Retail/Consumer Packaged Goods. A significant focus on digital technologies is evident, with 85% of GCCs engaged in digital commerce initiatives. Newly established GCCs are prioritizing advanced digital capabilities, with an overwhelming 90% focusing on artificial intelligence, machine learning, and data analytics. This reflects a strong shift toward innovation-driven operations. Additionally, non-tech functions such as Finance & Accounting and Human Resource Management, traditionally introduced in later stages, are now being integrated from the outset, showcasing an evolved approach to GCC setups. Cybersecurity and cloud capabilities are increasingly emphasized, supported by India’s skilled workforce and service providers like Infosys, TCS, and Wipro. Furthermore, Bengaluru leads in leasing space, capturing 62% of the total area occupied by GCCs, while Hyderabad follows with a 15% share. In Q3 2024 alone, GCCs leased over 8.2 million square feet, accounting for 44% of the overall office leasing market in India.
Conclusion: India’s Strategic Role in the Global GCC Landscape
India’s emergence as a strategic hub for GCCs transcends operational support; it extends into leadership and accountability for business outcomes on a global scale. GCCs are increasingly enabling global leadership roles, positioning themselves as integral components of international decision-making processes. The collaborative ecosystem fostered by these centers emphasizes partnerships with stakeholders and alignment with corporate goals, thus driving innovation through effective sourcing strategies. The trend of exploring non-metro cities in states like Karnataka, Tamil Nadu, and Uttar Pradesh is on the rise, as companies aim to leverage lower operational costs and untapped talent pools. Overall, India’s approach to enhancing its GCC landscape reflects an intent to solidify its status as a critical player in the global economy. With its diverse talent pool, robust infrastructure, and favorable policies, India is poised to continue attracting global enterprises, ensuring its position as a premier destination for GCC operations and innovation.
