DBT Bureau
Bengaluru, 20 May
Global Capability Centres (GCCs) or technology captives of multinational corporations have emerged as important units for driving IT exports from the country.
A Times of India report citing a HSBC Global Research Report said the overall share of IT exports from India has risen to 23% in 2023 from 18% in 2015.
According to the report, the growth rate of GCCs has been 3 percentage points faster than the top five IT firms every year since 2015.
It also noted that the cost per head of GCCs is 30-40% higher than that of Indian IT services providers.
Among sectors, global financial institutions have a large presence in India. Around 30-40% of global staff in technology and operations operate out of India. The salaries of GCC staffers are higher than that of IT services firms.
According to data from a Nasscom-Zinnov report, India had 1,580 GCCs with 1.66 million employees by the end of FY23. In the first half of 2023, 18 new GCCs have come up in tier-I cities such as Mumbai, Pune, Hyderabad and Bengaluru.
In addition to new technology centres, the existing GCCs are also expanding their footprints by setting up second or third centres in India. About 23 new centres were established by existing GCCs during this period. Some of the notable names include Pernod Ricard, Bristol Myers Squibb, DE Shaw and Co, Harman, Deloitte, among others. Interestingly, many of these centres are coming up in tier-II cities like Ahmedabad, Mysuru, Vadodara, Nashik, Tirunelveli, and Coimbatore among others. According to global consultancy firm EY, India is likely to be the home of 2,000 GCCs in the coming years.
According to experts, more global companies are coming into India as they find ample technology talent at a cheaper cost. Engineers are also preferring to work in GCCs as compared to IT services companies because of better compensation and work-life balance.
