GICs in India: Then and Now

The GIC story in India continues on its growth path – a segment that started out as an afterthought to facilitate lower cost has now emerged as an imperative. In the process, it has become a key segment of India’s IT-BPM industry in terms of revenue & employment generated and its value addition to the parent firm.

Given this segment’s growing significance, NASSCOM, jointly with Zinnov Consulting, conducted a detailed survey of GICs in India and have recently published a report titled “GICs in India: Getting Ready for the Digital Wave”.

In Part-I of this blog below, I am listing the key findings:




Number of GICs




Revenue (USD billion)




Employees (’000 nos.)




Median size of GIC (no. of employees)




GICs in India today number nearly 1,025 versus ~750 in FY2010. Revenue generated by GICs has gone up 1.7X to cross USD 19 billion (20 per cent share of IT-BPM exports) and this segment currently employees >25 per cent of the industry workforce (export employees).

  • ER&D/SPD is the largest segment both in terms of number of GICs (59 per cent) and revenue share (52 per cent)
  • While software/internet vertical ranks No. 1 in terms of number of GICs and employees, BFSI GICs have a 6 per cent share (number of GICs) but account for 24 per cent share of employees
  • North America and Europe-headquartered GICs account for >90 per cent of GICs in India
  • Tier II cities like Ahmedabad, Coimbatore, Vadodara, etc. emerging as GIC centres due to reasons such as proximity to manufacturing facility and access to niche or low cost talent


  1. For GICs in India, the growth journey has shifted gears to higher value add – increase scope of services, high complexity projects, IP creation, building competency & delivery efficiency – and thereby contributing to the top-line
  2. As a result of this expanding scope, GICs are evolving from single-function to multi-function centres, local to global governance, delivery focused to business result focus leading to an increasingly accountability driven model
  3. India is rapidly becoming the power-centre for MNCs – for many MNCs, the India centre is the largest GIC outside the HQ location
  4. Providing scale – Leading MNCs have >35% of technology workforce operating out of the India centre
  5. CoEs: Parent firms are looking to their India GICs as CoEs across markets, competencies and strategic factors; India is currently home to >100 CoEs across verticals
  6. Ecosystem partnerships: With academia through sponsored infrastructure (labs), training & curriculum design, sponsored/fundamental research, consulting, etc. GICs also looking to India’s startup landscape for new business opportunities, innovation, etc. – through Partnerships, Intrapreneurships/Accelerator programs, Funding programs, etc.
  7. Digitisation: India has emerged as the 2nd largest destination (after the US) to setup a centre for digital transformation

In the second part of this blog, I will highlight how GICs are enabling digital transformation for their parent firms.

You can purchase the report here: GICs in India: Getting Ready for the Digital Wave

Download the free Executive Summary

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