India's GCC Market Expected To Touch $110 Bn By 2030, Reveals EY Report
A recent report by EY revealed that India's Global Capability Centres (GCCs) are poised for significant growth by 2030, driven by a skilled workforce, favorable business environment, and robust infrastructure.
The report projected a staggering expansion of the GCC sector, with the domestic market size estimated to reach an impressive USD 110 billion by 2030, up from the current USD 45 billion.
The report indicated that software exports will play a crucial role in propelling India's service exports and fueling the growth of the GCC industry. It predicted that India will host around 2,400 GCCs by 2030, a number that could potentially increase to 2,550, solidifying India's position as a global technology and services hub.
The annual establishment of new GCCs is expected to jump from the current 70 to 115, indicating the growing interest of companies in setting up their GCCs in India.
Arindam Sen, Partner and GCC Sector Lead - Technology, Media & Entertainment and Telecommunications at EY India, expressed optimism about the future of the GCC industry, noting that companies are actively expanding their GCC operations across different cities in India. He noted that GCCs are expected to contribute significantly to the country's economic growth.
The report also highlighted the substantial employment opportunities that the GCC industry will create, projecting a headcount of over 4.5 million employees by 2030, compared to the current base of approximately 1.9 million.
To attract and retain top talent, GCCs are focusing on enhancing their employee value proposition and collaborating with partners to fulfill niche resource requirements efficiently. Additionally, Tier 2 cities in India are emerging as attractive destinations for GCCs, offering skilled talent at lower salaries, cost-effective real estate options, improving infrastructure and social security benefits.
While the projected growth of the GCC industry brings numerous benefits, the report also highlighted certain challenges. The overall cost per Full-Time Equivalent (FTE) is expected to increase from the current level of USD 29,100 to USD 37,760 by 2030. Factors contributing to this rise include escalating salaries, a greater focus on employee value proposition, collaboration with recruitment agencies to meet specialised resource demands, and investments in digital platforms for training new hires.
The report also identified several key trends shaping the GCC landscape in India for the year, including the establishment of Centres of Excellence (CoEs) in areas such as artificial intelligence (AI), cloud computing, engineering, data analytics, and cybersecurity.
Furthermore, GCCs are transitioning from being cost centres to profit centres by exploring new revenue streams. They are also expanding their functions in legal, marketing and procurement domains, with increased investments. Additionally, there is a growing emphasis on Employee Value Proposition (EVP) to enhance organisational culture, the nature of work, rewards, and compensation.
