India's Global Capability Centres: Growth and Challenges
GCCs in India: The story so far
Image: The Economic Times
India's global capability centre (GCC) ecosystem is rapidly evolving, contributing significantly to the technology and services sectors. While estimates of its size vary, recent data indicates that exports from multinational firms in this space are projected to reach $164 billion by 2025-26, driven by a growing workforce and increasing revenue per employee.
- 01Exports from multinational firms in India rose 13% to $153 billion for 2024-25, with projections of $164 billion for 2025-26.
- 02The workforce in the sector has expanded from 2.3 million in FY20 to 4.2 million currently, with foreign-owned firms employing nearly half.
- 03Revenue per employee has increased by 24%, indicating a shift towards higher-value work within GCCs.
- 04Industry leaders anticipate that artificial intelligence will reshape workforce structures, necessitating redesign of operational models.
- 05Calls for policy support include easier regulations and promotion of India's technology capabilities to attract further multinational investment.
Advertisement
In-Article Ad
India's global capability centre (GCC) ecosystem is becoming a pivotal part of the country's technology and services growth narrative. Recent discussions highlight a divergence in how GCCs are defined, particularly regarding whether subsidiaries of global IT firms like Accenture and Cognizant should be included in GCC metrics. Consultancy Wizmatic has broadened the definition to encompass these entities, arguing they operate similarly to traditional GCCs. Their estimates indicate that exports from multinational firms in IT and engineering services rose 13% to $153 billion in 2024-25, with projections suggesting a further increase to $164 billion in 2025-26. The workforce in this sector has also seen significant growth, expanding from 2.3 million to 4.2 million in recent years. As GCCs evolve, industry leaders are optimistic about the future, despite potential disruptions from artificial intelligence. They advocate for policy support to enhance India's attractiveness as a destination for multinational investment, emphasizing the need for easier regulations and global promotion of the country's technology capabilities.
Advertisement
In-Article Ad
The growth of GCCs in India is creating job opportunities and increasing revenue generation, which could lead to enhanced economic stability.
Advertisement
In-Article Ad
Reader Poll
Should India adopt policies to further support the growth of global capability centres?
Connecting to poll...
Read the original article
Visit the source for the complete story.