BENGALURU: The country is witnessing a huge growth in global capability centres (GCCs). Various reports project India will soon become home to 2,000 GCCs. Currently, there are over 1,500 GCCs in India, employing over 1.3 million people, which is about 25% of the direct employment generated by the country’s IT sector.
From Blackberry to Truecaller, Berry Global and Lloyds Banking Group, many companies have set up their GCCs in India. A few months ago, home services company Neighborly, which opened its GCC in Bengaluru, said the centre will be a strategic facility to access the country’s digital talent pool to help drive future growth.
While Bengaluru, Hyderabad, Chennai, Mumbai, Pune, and Delhi NCR remain popular sites for GCC establishments in India, tier-II cities are also grabbing the interest of GCC leaders, according to the 2023 EY GCC Pulse Survey.
Sachin Alug, CEO, NLB Services, said, “With a projection of nearly 2000 GCCs in the next few years, the 1510 strong GCC market in India is poised for unforeseen growth.” NLB Services’ report on GCCs titled ‘India Captivating’ found that nearly 78% of the existing GCCs have set up operations in India to create a superior talent pool. Besides contributing to their parent firms, GCCs in India have been known to build a larger impact over time.
“This entails a track record of training over 200,000 professionals in emerging technologies since the year 2015. To drive innovation, they have collectively invested $10 million annually for R&D in collaboration with academic institutions. As the GCC market grows in size, we expect it to unleash a plethora of opportunities for the talent and corporate landscape of India inevitably in the coming years,” Alug said.
Deloitte study said GCCs contribute $5.4–5.6 billion or `40,000-42,000 crore in taxes, of which about $4 billion or Rs 30,000 personal income tax contribution is 5.5% of the personal income tax collection by India for the financial year 2019-2020. About 83% of the new GCCs established in India in H1CY2023 encompass all three functional areas – engineering research & development (ER&D), information technology (ITit), and business process management (BPM), says Zinnov-Nasscom India’s GCC Trends report.