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GCC 3.0: A Location Analysis

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As of FY2019, over 1,250 MNCs from across the world have set up 1,750+ GCCs in India. (MNCs: A unique set of multinational companies; GCCs: Global capability centres set up in India. Often, many companies would have more than one centre).

An analysis of their geographic spread in India indicates the following:

  • 95+% of GCCs are present in metros
  • Emerging Tier-2 locations include Chandigarh, Jaipur, Vadodara, Ahmedabad, Vishakhapatnam, Coimbatore, Thiruvananthapuram
  • Each location is developing as a base for specific verticals
  • Main factors driving growth in the number of GCCs include: talent availability (digital skills gaining prominence), government support, manufacturing base, value arbitrage and ecosystem development incl. startup ecosystem

BENGALURU is clearly the leader location for setting up GCCs. It accounts for nearly 35% of GCCs in India. An analysis off GCCs in Bengaluru indicates the presence of an average of 20-25% of GCCs across all major verticals: leading this is telecom (50+% of telecom GCCs have a presence in Bengaluru) followed by diversified companies, software & internet, pharma, electrical & electronics, industrial, automotive, BFSI and professional services. Bengaluru is also the startup hub for India with over 25% of startups – providing an opportunity for collaboration for GCCs. It is also rapidly emerging as the hub for AI/ML: 50% of AI/ML talent and 60% of highest funded AI/ML start-ups are present here.

NCR, the second largest GCC location with a share of 16%. Leading hub for GCCs in the Professional services space particularly media & entertainment. Next largest vertical is electrical & electronics and software & internet. NCR accounts for 21% share of startups with a strong presence of incubators/accelerators run by corporates, government, educational institutions and venture capitalists.

HYDERABAD Leading verticals present include software & internet GCCs, followed by BFSI, pharma and electrical & electronics. The Telangana government is also aggressively promoting Hyderabad as the next IT hub. It accounts for about 13% of GCCs in India. According to LinkedIn’s India Workforce Report 2018, Hyderabad ranks 3rd after NCR and Bengaluru in attracting talent. It also is home to T-Hub, the largest startup incubator in India.

PUNE: With a strong Heavy Engineering ecosystem, Pune could emerge as a strong contender for Industry 4.0 initiatives. 33% of automotive GCCs have a set up in Pune. Other prominent industries include chemicals & materials, industrial and BFSI. Pune accounts for 12% of GCCs and 12% of GCC talent base.

MUMBAI: Has one of the largest concentrations of Pharma GCCs (on par with Bengaluru) – 30-35% share (although on a smaller base). Given that it is India’s financial capital, it is only natural for Mumbai to be the base of BFSI GCCs and Mumbai is also setting itself up to be India’s FinTech hub.

CHENNAI: Accounts for about 10% of total GCCs in India. It remains a prime location for Automotive MNCs and for setting up operations and Shared Services centres. Other prominent industries include electrical & electronics and industrial. Chennai is positioning itself as India’s SaaS capital and building its capabilities around analytics and AI also.

OTHER EMERGING LOCATIONS: Ahmedabad, Vadodara, Coimbatore, Thiruvananthapuram

  • Ahmedabad: Large base of enterprise software GCCs and a growing startup ecosystem
  • Vadodara: Fast emerging as a satellite location for GCCs in Industrial and Chemicals verticals owing to a thriving manufacturing ecosystem; is also being re-developed as a smarty city
  • Coimbatore: Has a presence of multiple GCCs focusing on IT-BPM work-portfolio. The city has a good presence of academic institutions contributing to the availability of technology talent
  • Thiruvananthapuram: Has been making concerted efforts to re-brand as a digital ecosystem

GCC 3.0 – Spotlight On Digital, Partnerships, New Delivery Models & Future Skills


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Diksha Nerurkar
Practice Lead - Strategy Group (Cloud, Future of Work)

I lead nasscom's Cloud Advocacy Program and the Future of Work initiative

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