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GCCs in India – the 5-year journey
GCCs in India – the 5-year journey

October 4, 2024

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The Indian GCC landscape has undergone a remarkable transformation over the years, becoming strategic hubs that are reshaping both India's corporate environment and global business dynamics. In the last 10 years, we have witnessed GCCs transforming into extended arms of their HQs, driving organisation wide initiatives, spearheading innovations, and forging strong ecosystem partnerships.

The dynamism of India’s GCC ecosystem is characterised by its ability to innovate and adapt and the strategic pivot from operational excellence to value creation.

In the GCC landscape report this year, we are doing a deep dive of the last 5 years to ascertain how the ecosystem has changed in this period.

 

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From FY19 till FY24, the number of GCCs have increased to over 1700. We witnessed the establishment of over 400 GCCs over this 5 year period, growing at a CAGR of almost 5%. These new GCCs along with the existing ones have expanded to more than 1 location within the country, leading to the establishment of close to 3000 GCC units during the same period. Some prominent names which have set up and / or expanded during this period include Airbnb, Kraft Heinz, H&M, Sandoz, Truecaller, Github, UPS etc.

If we look at total installed talent in Indian GCCs, the number stands at over 1.9 mn as of FY2024, growing at a CAGR of over 6% and out of which 82,000 are from Tier 2 and 3 cities of the country. Over the last many years, we have witnessed increase in share of Indian engineering talent vis-à-vis global talent growing to over 32% and the same number for engineering architectural talent also growing to over 20%.

The India GCC revenues have also risen to USD 64.6 bn as on FY2024, from just over USD 40 bn in FY2019, growing at a healthy CAGR of close to 10% over the 5 years. This massive growth has been possible due to expansion to Tier 2/3 cities, increasing complexity of work being driven out of Indian GCCs, more and more global unicorns and G2000 enterprises setting up in the country, increased collaboration between GCCs and SPs etc. In addition, out of these overall revenues, over USD 36.4 bn is attributed as ER&D revenues. The growth in GCC ER&D revenues is due to heavy investment in tech like IoT, ML, AI and other emerging technologies.

India’s GCCs are not merely participants but leaders of the innovation race. It is a shift in trust and global perception supported by a symbiotic ecosystem of startups, service providers, and government.


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Vandhna Babu
Principal Analyst - Research

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