India’s position as a global hub for Global Capability Centers (GCCs) has solidified even further with a significant leap in both the number of centers and revenue. According to the latest report, the number of GCCs operating in India has reached an impressive 1,700 by the end of FY24. This milestone reflects a booming sector that continues to attract multinational companies seeking to leverage India’s talent and cost advantages.
A Record-Breaking Year
In FY24, GCCs in India have seen a staggering 40% increase in revenue, which has risen to $64.6 billion. This sharp revenue growth underscores the pivotal role these centers play in the global economy and highlights India’s growing prominence in the GCC landscape. The figures point to a robust demand for the specialized services and innovative solutions provided by these centers.
What are GCCs?
Global Capability Centers, often referred to as Global Service Centers, are subsidiaries or branches of multinational companies that are set up to perform specialized business functions, including IT services, finance, HR, and customer support. These centers are integral to a company’s global operations, allowing them to manage and streamline processes efficiently while benefitting from local expertise and cost efficiencies.
Looking ahead to 2030, the Global Capability Center (GCC) sector in India is poised for remarkable growth, bringing with it significant opportunities for economic advancement and job creation. According to recent projections, the GCC market in India is expected to expand to a remarkable $99-105 billion. This growth will be accompanied by an increase in the number of GCCs to between 2,100 and 2,200, and a rise in employment to approximately 2.5-2.8 million people.