As many as 18 new global capability centres (GCC) have been set up in India in the first half of CY2023 and more than half of them are in locations other than Bengaluru, says a report.
The Nasscom-Zinnov report highlighted that India is home to more than 1,580 GCCs, with a total market size of USD 46 billion and growing at a compounded annual growth rate (CAGR) of 11.4 per cent. Over 1.66 million professionals are recruited by these GCCs as of June 2023.
GCCs are offshore units of multinational corporations and global lenders that provide services such as IT, finance, human resources, R&D, and analytics to their parent organisations.
Tier-II cities such as Vadodara, Nasik, and Coimbatore saw the expansion of centres for established GCCs in verticals such as industrial, fast-moving consumer goods (FMCG), retail, electrical and electronics, and software and internet.
Of the 18 new GCCs, approximately 83 per cent have all three functional areas of engineering R&D, IT, and business process management.
“India's 1580+ Global Capability Centers (GCCs) are continuing to evolve from support function hubs to strategic value centres, cementing the country's position as a destination for world-class talent and innovation," Zinnov Partner Mohammed Faraz Khan said..
The best part is that India's contribution to the GCC innovation for these industries is no longer restricted to Tier 1 cities like Bengaluru, Hyderabad or Pune but has also expanded to Tier 2 cities like Thiruvananthapuram, Khan added.
The report, titled India GCC Trends – Half Yearly analysis, H1CY2023, identifies 7 key pillars that support the growth of the GCC ecosystem in India. These are Generative AI Paradigm, engineering in India, digital age paradigm shift, global business services capabilities, global leadership, networked globalisation, and India’s new talent code.