Athira Sethu
Kochi, 5 March 2025
Global Capability Centres (GCCs) have now been at the centre of India’s IT sector growth, with these centres being places of innovation, research, and business process management. In its 2024 GCC Annual Report, it states that GCCs have witnessed a paradigm change from being a back-office operations unit to becoming a strategic unit which leads in driving global innovation. These hubs have not only added immensely to businesses but have also improved operational effectiveness, generated employment, and embraced innovative technologies such as AI, Machine Learning, and Cloud Computing.
The report points to a 15% year-over-year growth in GCC-driven services, reflecting their growing contribution to the global economy. India has become a world leader in hosting more than 1,800 GCCs, with revenue of $64.6 billion in 2022 and expected to cross $100 billion by 2030. The use of cutting-edge technologies like generative AI, blockchain, and zero-trust cybersecurity models by GCCs will drive the next wave of business transformation globally. These facilities are also focusing on staff strategies like mixed models and upskilling measures to entice best talent.
India’s increasing prominence as a hub for the GCC is also visible in its strengthening digital economy that will contribute approximately one-fifth of the total national GDP in 2030. The local cloud market, in fact, is forecasted to increase in CAGR growth rate at a pace of 24% for 2024 to 2027 and end up at $20.3 billion in 2027. GCCs played an integral part in driving growth through this kind of focus on digital transformation among industries such as banking, finance services, and retail. Specifically, the Banking, Financial Services, and Insurance (BFSI) industry has undergone enormous digitalization, and more than 95% of payments are made digitally today.
Some of the key GCCs, including Microsoft, Amazon, Goldman Sachs, and Walmart, have extensive operations in India, majorly based in Bengaluru, which is well-known for its rich talent base and IT facilities. These firms use the highly educated labour force of India to create novel products and solutions, fueling the development of the domestic and international IT industry.
Yet, the high growth rate of GCCs also calls for industry, academic, and government partnerships. The Nasscom report observes that there is a mismatch between the skills imparted by academic institutions and the industry’s needs, especially in data analytics and AI. To address this gap, there must be closer alignment between industry and universities, such as industry-focused curricula and exposure to practical experience via internships and mentorship programs.
In short, GCCs are not fueling the growth of India’s IT sector but also pushing the country to emerge as a global tech and innovation hub. Through continued investment in talent, technology, and partnerships, India will be able to sustain its competitive edge and define the future of the world’s digital economy.
