India's GCC Ecosystem: Transforming from Back Office to Global Innovation Hub

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.

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.

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.