- | 6:00 pm
India’s GCC market may almost double to $105 billion by 2030
About one-fourth global engineering roles are now based out of India, with industries such as aerospace, defense, and semiconductor focusing on next-generation technologies
The market for global capability centers (GCCs) in India may expand to $99-105 billion by 2030 from about $65 billion currently, a report by IT industry lobby Nasscom and consultancy Zinnov said.
Over the past five years, the GCC ecosystem has expanded rapidly with 400+ new GCCs and 1,100 new centers established, raising the total number of GCCs in the country to over 1,700.
The report sees the number of GCCs in the country hitting 2,200-mark by the end of the decade and the headcount rising to about 2.8 million from about 1.9 million currently.
Over the past five years, India has transformed into the “GCC Capital of the World,” with the largest base of 17% of global technology capability centers, the report said, adding that most such offshore services units operate as multi-functional centers, supporting technology, operations, and product engineering.
More than 220 GCC units are housed in tier-II and tier-III cities in the country, the report said, adding that cities such as Ahmedabad, Kochi, Thiruvananthapuram, and Coimbatore doubling down on building critical mass.
While large enterprises led the initial wave of GCC growth, more mid-market firms and unicorns are setting up GCCs in India, with about 40 global unicorns setting up a GCC presence in the country.
Although the Indian GCC landscape has become more diverse, the US continues its dominance with more than 1,000 GCC units.
Over the past five years, more global roles are based out of India, with more than 6,500 such incumbents currently, including more than 1,100 women leaders, the report said.
One-fourth global engineering roles are now based out of India, with industries such as aerospace, defense, and semiconductor focusing on next-generation technologies.
Additionally, semiconductor firms and tech multinationals are increasingly establishing product teams in India, the report said.
Amid the exponential growth of AI and its potential to impact all products and services, GCCs in the country are increasingly focused on building AI capabilities and driving the AI transformation for their internal enterprise, it added.
“GCCs have rapidly evolved from being operational hubs to becoming true engines of innovation and strategic growth. Their maturity in digital capabilities, engineering excellence, and advanced technology solutions is noteworthy,” Nasscom chairperson Sindhu Gangadharan said in the report.
“As they advance along the maturity curve, they are increasingly positioned to lead global agendas, secure critical managerial roles, and shape decision-making processes, setting the stage for India to become a global leader in digital transformation and sustainable business practices,” Gangadharan added.
“India has undeniably become the GCC capital of the world. And it’s not just the scale. India’s GCCs are also driving high-value charters, where we are witnessing a shift towards portfolio and transformation hubs, with increasing product ownership from India,” Zinnov chief executive officer Pari Natarajan said.
“The new digital tech narrative, including Gen AI, automation, and productivity charters, is being largely driven through the centers of excellence model. What’s truly exciting is how India has become a microcosm of global organizations. Every business unit and function now, has some representation here, making our GCCs the nerve centers of global tech advancement,” Natarajan added.