India Experiences a New Surge of Premium GCC Establishments and Extensive Growth ventures in July
India is experiencing a significant shift in the landscape of Global Capability Centers (GCCs), with a growing number of companies setting up shop in the country. This trend is transforming India from a cost-focused delivery hub to an innovation-driven strategic center.
According to recent reports, India currently houses nearly 3,000 GCCs, with projections suggesting that this number could exceed 2,200-2,400 by 2030. These centers are expected to employ around 2.5 to 2.8 million professionals and generate close to $100-110 billion in value annually by then.
One of the key reasons for this surge in GCCs is the deep talent pool in tech and STEM fields. India offers a skilled workforce in IT, engineering, data science, AI, cybersecurity, and R&D, making it an ideal location for mission-critical and innovation-driven functions.
Beyond cost-effectiveness, India now provides a conducive ecosystem for high-value capabilities and digital transformation. This evolution allows global enterprises to transform their GCCs into innovation command centers.
A prime example of this transformation is Daikin, a provider of air-conditioning solutions, which is planning to set up a new GCC in India in collaboration with EY. Daikin is investing an additional INR 2,500 crore in an export-oriented unit in India.
Another Fortune 500 giant, Costco, is establishing its first GCC in Hyderabad, focusing on technology and research functions. The new center is expected to initially employ 1,000 professionals.
US retail giant Albertsons is also planning to hire 1,000 tech professionals over 18 months for its Bengaluru GCC. This center will focus on AI and data-driven retail innovation.
The strategic value of India is also being recognized by emerging tech innovators. Inductus, for instance, has developed a Digital Twin Process that replicates physical systems in a virtual environment for real-time collaboration and operational efficiency. Their hybrid approach, which combines the Digital Twin model with the COPO model, aims to optimize costs, mitigate risks, and accelerate GCC growth.
The pharmaceutical sector is not left behind in this trend. Eisai Pharmaceuticals is launching a GCC in Visakhapatnam to boost digital transformation and pharma research. This move is intended to strengthen Visakhapatnam's role as a tech and healthcare hub.
Global financial major State Street has expanded its presence in India, opening a new facility in Coimbatore that could employ approximately 2,400 people. This follows the inauguration of another GCC in Chennai just weeks prior.
Alight Solutions, a global consulting firm, has also established its latest GCC in Chennai to enhance its capabilities in delivering core technology and consulting services.
This rapid expansion of GCCs in India is not limited to established hubs like Bengaluru, Hyderabad, Pune, Chennai, Mumbai, and Delhi-NCR. Tier-2 cities like Ahmedabad, Kochi, and Indore are also seeing an increase in marquee GCC setups and expansions.
The resilient and agile regulatory and compliance environment in India, coupled with its mature compliance and cybersecurity frameworks, makes it an attractive destination for global companies looking to manage global regulatory challenges effectively.
In conclusion, India's GCC ecosystem has evolved from a low-cost delivery model to a high-value, innovation-led platform that integrates AI, Industry 4.0, and global collaboration. This makes it an indispensable part of global enterprise growth and digital transformation strategies.
- The surge in Global Capability Centers (GCCs) in India is primarily driven by the country's deep talent pool in technology and STEM fields, providing an ideal location for high-value capabilities, digital transformation, and innovation.
- Companies like Daikin, Costco, Albertsons, and Eisai Pharmaceuticals are investing in India's GCCs, not only for cost-effectiveness but also for the opportunity to leverage local expertise in AI, data science, R&D, and other cutting-edge technologies.
- The strategic value of India is extending beyond established tech hubs to Tier-2 cities like Ahmedabad, Kochi, and Indore, as global enterprises recognize the country's mature compliance and cybersecurity frameworks and resilient regulatory environment, making it an attractive destination for their growth and digital transformation strategies.
