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On Tue, 19 Nov, 8:02 AM UTC
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No More Back Office as India's GCCs Take the Front Seat
The year 2024 witnessed a spate of expansions of global capability centres (GCC) in the country. What truly stood out is India's confident strides in crushing the traditional view of the country as a back-office operations hub. At the Bengaluru Tech Summit 2024, the Karnataka government announced the launch of India's first GCC policy and strategic MoUs with global tech giants, with an aim to train 1 lakh professionals in the next year. "Our state is the preferred destination for GCC, boasting unmatched engineering talent and the highest number of AI professionals globally," said chief minister Siddaramaiah, emphasising the state's commitment to technological advancement. As per data, Karnataka hosts over 875 GCCs, over 30% of India's total, employs 6 lakh people (35% of India's GCC workforce) and contributes $22.2 billion annually. By 2029, the state targets 1,000 GCCs, 3,50,000 new jobs, and $50 billion in output. Going beyond Bengaluru as the primary GCC hub, cities like Hyderabad, Pune, Mumbai, Delhi, Gurugram, Noida, and Chennai are emerging as strong competitors. Tier-II cities like Jaipur, Vadodara, Coimbatore, and Kochi also gain traction, signalling a shift in GCC location preferences. More specifically, around 1,744 global capability centres are strategically spread driving innovation while boosting India's role as a global business powerhouse. Several notable expansions that took place this year include Bengaluru-led GCC expansions with Apple's first R&D subsidiary, StoneX's new office, SurveyMonkey's GCC, Walmart Global Tech's 1-million-square-foot lease deal to establish a GCC, and innovation hubs by New Relic and DocuSign. In Mumbai, Morgan Stanley opened a 1-million-square-foot campus for 8,500 employees. In Hyderabad, InvoiceCloud launched its first office, while Haryana welcomed an R&D facility from Comtrend. Another key trend reportedly observed this year was the growing presence of women in leadership roles in GCCs in India. Some of the leaders include Optum MD Uma Ratnam Krishnan, HSBC India Global Service Centres MD Mamatha Madireddy, Siemens Healthineers' executive director Kalavathi GV, Merck IT Centre chief Anuprita Bhattacharya, and 7-Eleven's SVP of shared services Jennifer Goschke, among others. This trend reflects a much-needed shift in organisations in India, which are prioritising diversity and inclusion, especially compared to the country's predominantly male-dominated IT sector. As per the Karnataka GCC Policy, Bengaluru has the highest number of female employable talent in India. Women are increasingly being employed in high-tech and leadership roles within GCCs, driven by inclusive hiring practices and tailored skill development programs. India's GCC sector is experiencing remarkable growth, employing over 1.6 million professionals. According to EY, this expansion is expected to continue, with projections indicating more than 2,400 GCCs in India by 2030, which can create over 4.5 million jobs. The market size is anticipated to grow significantly, rising from the current $45 billion to $110 billion by 2030. GCCs offer significantly higher salaries, with compensation for software developers ranging from ₹9.7 lakh to ₹43 lakh annually, compared to ₹5.7 lakh to ₹17.9 lakh in IT services for similar roles. Entry-level salaries at GCCs are also up to 30% higher than the average across sectors. GCCs emphasise innovation, particularly in AI, cloud computing, and cybersecurity, positioning themselves as leaders in tech transformation. In contrast, Indian IT companies focus on maintaining existing projects, while lagging in generative AI and R&D investment due to high costs. In a conversation with AIM, Mohandas Pai, chairman of Aarin Capital and former Infosys executive, noted that Indian IT traditionally excels in services, not products, reflecting a conservative approach to innovation. All things considered, GCCs in India are heavily focused on building AI capabilities and driving AI transformation within their organisations. About 70% of India's GCCs are reportedly adopting generative AI. The most sought-after tech roles in GCCs include software engineers, developers, data specialists, AI and machine learning experts, cloud computing professionals, and cybersecurity specialists.
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India's GCC ecosystem set to hit $100 billion by 2030: report
As per the report, 70% of mid-sized corporations view their Indian GCCs as crucial to advancing their strategic innovation agendas. Nealy 90% of domestic GCCs now operate as multi-functional entities, handling technology, operations and product engineering.India's global capability center (GCC) landscape is undergoing a dramatic transformation, with the sector projected to hit $100 billion in value by 2030 and employ over 2.5 million professionals, according to a report by consulting firm Inductus. India currently hosts over 1,700 GCCs, generating an estimated $64.6 billion in annual revenue and employing over 1.9 million professionals across various functions. As per the report, 70% of mid-sized corporations view their Indian GCCs as crucial to advancing their strategic innovation agendas. Nealy 90% of domestic GCCs now operate as multi-functional entities, handling technology, operations and product engineering. Notably, engineering, research and development (ER&D)-focused GCCs are growing 1.3 times faster than the general GCC growth rate, signifying a shift towards high-value capabilities. The study projects that by 2026, over 70% of GCCs in India will integrate advanced AI capabilities, ranging from machine learning algorithms to AI-driven customer support. About 80% of surveyed GCCs plan to invest in cybersecurity training and AI-driven threat detection over the next five years, the report said. Also Read: GCCs ping class of 2025 to build their tech talent pipeline The report also emphasised India's competitive edge in operational costs, with Indian GCCs offering up to 40% lower operational costs compared to Eastern Europe and 30% lower than Latin American counterparts. "India's GCC ecosystem has matured into a powerhouse of innovation and digital transformation, offering unparalleled opportunities for companies to accelerate their growth journey while maintaining operational efficiency," Alouk Kumar, founder and CEO of Inductus, said. GCCs, once seen as mere back-office support for large corporations, have now evolved into significant players in India's tech industry. Indian GCCs have showcased India's tech talent pool to global companies, leading to increased job opportunities.
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India's GCC Ecosystem Set to Hit $100 Billion by 2030, Emerges as Global Innovation Hub: Inductus Report
A comprehensive new study by Inductus reveals that India's Global Capability Centers (GCC) landscape is undergoing a dramatic transformation, with the sector projected to reach $100 billion in value by 2030 and employ over 2.5 million professionals. The whitepaper, titled "India's GCC Landscape: A Strategic Pathway for Mid-Sized Aspirational Corporations to Scale Beyond," highlights that India currently hosts over 1,700 GCCs, generating an estimated $64.6 billion in annual revenue and employing 1.9 million professionals across various functions. According to the report by Inductus, 70% of mid-sized corporations view their Indian GCCs as crucial to advancing their strategic innovation agendas. An impressive 90% of Indian GCCs now operate as multi-functional entities, handling technology, operations, and product engineering. Notably, Engineering, Research and Development (ER&D) focused GCCs are growing 1.3 times faster than the general GCC growth rate, signifying a shift towards high-value capabilities. Commenting on the same, Mr Alouk Kumar, Founder and CEO Inductus shared, "This whitepaper is not just a research document; it's a strategic compass for mid-sized corporations looking to scale globally. Our findings clearly demonstrate that India's GCC ecosystem has matured into a powerhouse of innovation and digital transformation, offering unparalleled opportunities for companies to accelerate their growth journey while maintaining operational efficiency." Looking ahead, the study projects that by 2026, over 70% of GCCs in India will integrate advanced AI capabilities, ranging from machine learning algorithms to AI-driven customer support. The commitment to technological advancement is further evidenced by the fact that 80% of surveyed GCCs plan to invest in cybersecurity training and AI-driven threat detection over the next five years. The research also emphasises India's competitive edge in operational costs, with Indian GCCs offering up to 40% lower operational costs compared to Eastern Europe and 30% lower than Latin American counterparts, while maintaining high-quality output and innovation capabilities. Inductus GCC, which conducted this comprehensive study through surveys and expert interviews, continues to play a pivotal role in helping global corporations establish and optimise their GCC operations in India. The firm's latest whitepaper serves as a strategic guide for mid-sized corporations looking to leverage India's robust GCC ecosystem for sustainable growth and innovation. Complementing the whitepaper launch, Inductus GCC recently hosted a high-level webinar titled " Rise of Global Capacity Centres ( GCCs) as Drivers of Global Innovation Ecosystem" on November 14th 2024. The event featured industry leaders and experts who deliberated on the evolution of GCCs, exploring critical themes including innovation trends, R&D ecosystems, and the strengthening bonds between industry and academia in the GCC landscape.
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India's Global Capability Centers (GCCs) are evolving rapidly, moving beyond traditional back-office operations to become centers of innovation and technological advancement, with a strong focus on AI integration and R&D.
India's Global Capability Centers (GCCs) are undergoing a significant transformation, shedding their image as mere back-office operations and emerging as powerhouses of innovation and technological advancement. This shift is reshaping India's role in the global tech industry and driving substantial economic growth 123.
The GCC sector in India is experiencing remarkable expansion. Currently hosting over 1,700 GCCs, the industry generates an estimated $64.6 billion in annual revenue and employs approximately 1.9 million professionals 2. Projections indicate that by 2030, the sector could reach a valuation of $100 billion and employ over 2.5 million professionals 3.
While Bengaluru remains a primary GCC hub, other cities are emerging as strong competitors. Karnataka, hosting over 875 GCCs, contributes significantly to the sector with 6 lakh employees and $22.2 billion in annual output 1. The state government has launched India's first GCC policy, aiming to establish 1,000 GCCs and create 3,50,000 new jobs by 2029 1.
GCCs in India are heavily focused on building AI capabilities and driving AI transformation. About 70% of India's GCCs are reportedly adopting generative AI 1. By 2026, over 70% of GCCs in India are expected to integrate advanced AI capabilities, ranging from machine learning algorithms to AI-driven customer support 23.
Nearly 90% of domestic GCCs now operate as multi-functional entities, handling technology, operations, and product engineering 2. Engineering, Research and Development (ER&D) focused GCCs are growing 1.3 times faster than the general GCC growth rate, signifying a shift towards high-value capabilities 3.
Indian GCCs offer significant cost advantages, with operational costs up to 40% lower than Eastern Europe and 30% lower than Latin American counterparts 3. This cost-effectiveness, combined with high-quality output and innovation capabilities, makes India an attractive destination for global corporations 23.
A notable trend in 2024 has been the growing presence of women in leadership roles within GCCs in India. This shift reflects a prioritization of diversity and inclusion in the sector, contrasting with the traditionally male-dominated IT industry 1.
As the GCC ecosystem in India continues to evolve, it faces both opportunities and challenges. The sector's focus on innovation, particularly in AI, cloud computing, and cybersecurity, positions it as a leader in tech transformation. However, it must continue to adapt to rapidly changing technological landscapes and global economic conditions to maintain its growth trajectory 123.
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India's Global Capability Centers (GCCs) see significant growth, with revenue reaching $64.6 billion in FY24. The sector's expansion attracts Fortune 500 companies, promising further growth by 2030.
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Global Capability Centers in India are evolving from cost-saving units to hubs of technological innovation, leveraging AI, automation, and cloud computing to redefine business operations and drive digital transformation.
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Global Capability Centers (GCCs) in India are evolving into innovation powerhouses, expanding beyond traditional tech hubs and contributing significantly to the country's R&D landscape.
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A recent study by Xpheno shows that Global Capability Centers (GCCs) in India are offering salaries up to 20% higher than traditional IT companies. This trend is reshaping the job market for tech professionals in the country.
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Bengaluru has established itself as the primary Global Capability Center (GCC) hub in India, hosting 36% of the GCC workforce in the first two quarters of FY25. The city's dominance in the tech sector is driving this trend, with other major cities also playing significant roles.
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