GCCs see rapid growth in India, 70% of Fortune 500 cos eye expansion by 2030

Amid a rapid expansion of the global capability centres (GCC) ecosystem in India, 70% of Fortune 500 companies are expected to expand their presence here by 2030, according to the latest report by tech industry body Nasscom with management consulting firm Zinnov.

India houses over 400 new GCCs. 1,100 new centres were set up in India, taking the total number to over 1,700 between FY2019 and FY2024, as per the report. GCCs, which earlier worked as outsourcing back offices for multinationals, have now evolved into innovation hubs and Centres of Excellence (CoEs). They handle complex technologies and processes across the value chain.

Terming India as the “GCC Capital of the World”, the report says that with the largest base of 17% of global technology capability centres, GCCs in India generated $64.6 billion in export revenue and employed over 1.9 million people as of FY2024. The average GCC talent expanded by 24% since FY2019, and is estimated at 1,130+ employees in FY2024.

By 2030, the GCC market in India is estimated to grow to $99-105 billion, with the number of GCCs reaching 2,100-2,200 and headcount rising to 2.5-2.8 million. "While the initial wave of GCC growth was driven by large enterprises, more mid-market enterprises and unicorns are also setting up GCCs in India. Around 40 global unicorns have an India GCC presence as of 2024," the report adds.

Globally, the Americas continue their dominance with over 1000+ GCC units, says the report, recognising the Indian GCC landscape has become more diverse, with over 220 GCC units housed in emerging locations (Tier-II and Tier-III cities). "Ahmedabad, Kochi, Thiruvananthapuram, and Coimbatore are building critical mass."

In terms of maturity scale, ER&D GCCs, contributing $36.4 billion in revenue, have grown 1.3 times faster than the overall GCC growth rate. "Over the past five years, more than 6,500 such positions have now been established. Interestingly, this includes 1,100+ women leaders holding Global Roles," says the report.

GCCs are also leading the AI transformation. There is a talent pool of over 1,20,000 AI professionals across GCCs, with 30% of AI COEs housed in Software & Internet GCCs, the report finds.

“GCCs have rapidly evolved from being operational hubs to becoming true engines of innovation and strategic growth. As they advance along the maturity curve, they are increasingly positioned to lead global agendas, secure critical managerial roles, and shape decision-making processes, setting the stage for India to become a global leader in digital transformation and sustainable business practices,” says Sindhu Gangadharan, Chairperson, Nasscom.

Pari Natarajan, CEO, Zinnov says apart from having more than 1,700 GCCs, India's GCCs are also driving high-value charters. "The new digital tech narrative, including Gen AI, automation, and productivity charters, is being largely driven through the Centers of Excellence model.”

Global real estate consultancy CBRE predicts that by next year the number of operational GCCs will expand by 20% and leasing activity will reach 40-45 million sq. ft. between 2024 and 2025.