GCCs

A Global Capability Center (GCC) is an offshore division established by a company in a foreign nation to internalize information technology (IT) and associated business operations. GCCs offshore the work but don’t outsource it. They were earlier called Captive Centers.

GCCs are fueling India's economy and contributing significantly to its growth.

Key facts and numbers:

The chipmaker Texas Instruments established the first Global Capability Center (GCC) in India in 1985.
Over 1,700 GCCs (roughly half of all GCCs worldwide) are currently operating in FY24. Their export revenue rose more than 40 percent from the previous year to $65 billion.
For the first time in November 2024, services exports were provisionally estimated by the commerce ministry at $35.7 billion, higher than merchandise exports of $32.1 billion. Software services were the biggest contributors, with 47% of the total.
490 of the GCCs have their Centre of Excellence (CoE) for data analytics in India.
Some of the largest GCCs in India include JPMorgan Chase & Co (55,000), SAP Labs, Goldman Sachs, Walmart, and Tesco.
GCCs occupy roughly 35 percent of all commercial real estate in India in 2024 and IT companies around 16 percent.
GCCs of some US tech companies are offering much larger workspaces for employees than the norms till now, which have been 100 sqft in GCCs, 75 in IT services, and 65 in BPOs. Microsoft is said to be providing about 200 sqft per person in the Hyderabad campus. The costs of fit-outs and tech infra for these GCCs are seen to be going up to even Rs 5,500 per sqft, way higher than the norm of Rs 1,800.
Hyderabad has emerged as a key hub for global capability centers (GCC) in the life sciences sector, with prominent pharmaceutical and biopharmaceutical companies such as Amgen, Sanofi, Novartis, Bristol Squibb, Eli Lilly, Bayer, Evernorth, Medtronic, Providence and Zoetis establishing their presence. Hyderabad houses GCCs of eight of the top 10 global pharma companies. Also see - List of all GCCs in Hyderabad
Over 55 healthcare & life-sciences (H&LS) GCCs employing over 3 lakh professionals are now present in India as of 2025, operating over 95 centres spread across mainly Bengaluru, Hyderabad and Mumbai. Among those who’ve trooped in are as many as 23 of the world’s top 50 life sciences companies.
Employ approximately 1.5-1.66 million people. GCC employees contribute approximately 6% of direct income tax.
India has the largest annual supply of STEM graduates in the world, around 1.9m per year and rising. GCCs are coming to India for its apparently endless stream of engineers and scientists at bargain prices. - Swaminomics
India currently accounts for 5-7% of global innovation output. This is projected to surge to 15-20% by 2030, with GCCs playing a pivotal role in this growth. Nvidia’s CUDA toolkit platform has significant work done in India.
GCCs offer 12-20% higher compensation compared to traditional IT and non-tech companies
Generate cumulative revenue of about $46 billion across various sectors
Contribute $1.2-1.3 billion in annual taxes
Projected to reach 1,900 GCCs with over 2 million employees by 2025
Revenue forecast to reach $100 billion by 2030
GCCs are expanding beyond tier-1 cities to tier-2 centers -

There are over 1,000 Engineering and R&D (ER&D) GCCs in India across diverse sectors
BFSI GCCs account for 8% of the total GCC footprint and employ ~500,000 employees.
EY sees GCCs in India becoming a “profit centre” rather than staying a “cost centre”.
800 new GCCs are anticipated in the next 5-6 years

Source - The Times of India

India Cola

Search This Blog

GCCs