India GCC Market Size To Reach $60 Bn By 2025: Report
A new report has revealed that India's Global Capability Center (GCC) market is set to reach USD 60 billion by 2025.
With a current count of 1580 unique GCCs as of FY2023, India has firmly established itself as an attractive destination for global multinational corporations (MNCs) looking to establish their centers outside of their headquarters, noted the nasscom-Zinnov report.
But what makes India attractive for global companies in terms of GCC? “India is a unique and diverse country with a large pool of skilled talent that is mostly English-speaking, backed by a strong culture of innovation, cost-competitive ecosystem, and a mature technology landscape. Government initiatives such as Make in India and Digital India have further enhanced India's attractiveness as a GCC destination,” Prakash Bodla, Chairperson - GCC Sectoral Committee, American Chamber of Commerce (AMCHAM) India, told BW Businessworld.
“In addition, India is a big growth market for most of the companies and having their GCC in India makes perfect sense,” he added.
The report surmised that GCCs are not only drive engineering expansion but also playing a vital role in co-piloting transformation efforts with their parent organizations, fostering product innovation and spearheading technological advancements.
The GCC market's growth in India is primarily fueled by Engineering Research and Development (ER&D), accounting for approximately 56 per cent of the overall GCC revenue share.
In the past two years, the impact of ER&D remains unstemmed, with the sector contributing more than 42 per cent of the total talent growth.
Furthermore, Business Process Management (BPM) and IT Services sectors are also experiencing notable growth, with GCCs expanding their operations across Tier-II Indian cities, capitalising on operational convenience, cost advantages and a pool of digitally skilled and affordable talent.
In a statement, Debjani Ghosh, President, nasscom said, “GCCs in India have helped India’s tech industry remain resilient amid the current upheaval in the global market. The ecosystem not only fortifies India’s tech industry but also facilitates profound collaborations with startups, academia, and external partners to harness cutting-edge technologies and fuel innovation.”
Specialising in niche skills such as Cloud, AI/ML/NLP, Cybersecurity, Low Code/No Code, Advanced Analytics, Blockchain, and IoT, India's GCCs act as core technology hubs for their parent organisations. They are at the forefront of exploring emerging technologies like Web 3.0, Digital Twins, and Metaverse, positioning India as a sandbox for cutting-edge innovation and digital leadership.
The report mentioned that the growth of India's GCC ecosystem will be driven by factors such as development of niche competencies, the cultivation of global leadership, monetisation of services, and venturing into untapped frontiers.
