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India’s economic rise in recent decades can be partly attributed to one powerful force: global capability centers (GCCs). These innovation centers have transformed from back-office operations to strategic engines, driving India’s gross domestic product (GDP) and shaping the future of work.
India’s huge pool of skilled professionals, over 5.4 million in the IT industry alone, initially made it an attraction for the GCC. But the story goes beyond cost-effectiveness. Today, the GCC is a hotbed for cutting-edge advancements in fields such as artificial intelligence (AI), data science, and engineering. This focus on innovation positions India as a global leader in digital capabilities, attracting major companies seeking a competitive edge.
Needless to say, GCCs are bringing global work culture and innovation to India. Many start-ups are following this trend and adopting the same culture. Talents are being hired from GCCs to keep up the pace and stay ahead of the curve. This movement is not only beneficial for the start-ups but also serves a larger purpose. Without these developments, India would not be on its way to becoming a global hub for innovation and start-ups.
The influence of GCCs is undeniable. According to a NASSCOM Deloitte study, they contribute significantly to India’s GDP – around $33.8 billion in 2020 – and according to a Deloitte report this figure is projected to grow even more in the coming years, with potential revenues estimated at $80 billion. This shows real progress, with GCCs creating 1.66 million jobs across various industries, accounting for around 30% of the total IT industry workforce in India.
The influence of GCCs is not limited to just major cities like Bengaluru, Mumbai and Delhi-NCR. By setting up centres in tier-2 and tier-3 cities like Ahmedabad, Mysore, Vadodara, Nashik, Tirunelveli, Bhubaneswar and Coimbatore, GCCs are promoting balanced growth across India. This expansion creates employment opportunities, boosts local economies and paves the way for better infrastructure in these regions. So far, about 150 of the more than 1,500 GCCs in India are located in tier-2 cities.
While challenges such as retaining talent and changing regulations exist, the future of GCCs in India is optimistic. With an indication of potential revenues of $80 billion by 2030 and an employee base of over 2 million professionals, GCCs are set to become the cornerstone of India’s economic journey, according to an EY report.
GCCs are not just economic drivers. They are changing the way India works. By providing diverse career paths ranging from entry-level roles to specialized positions in cutting-edge fields such as data science, AI, machine learning and advanced engineering, GCCs are redefining India’s talent utilization. This not only empowers individuals but also establishes India as a global hub for skilled professionals with an increased presence of Indian-origin executives in leadership positions in global firms.
India’s economic progress story is inextricably linked to the rise of GCCs. These dynamic hubs are not just contributors but true catalysts for change. By fostering innovation, creating jobs, driving regional development and nurturing a highly skilled workforce, GCCs are leading India towards a future driven by digital skills and global competitiveness.
This article is written by Anshuman Das, CEO and Co-founder of Careernet.
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