Indian GCC market predicted to grow up to $110bn by 2030: Report

The Indian global captive centre (GCC) market can potentially grow up to $110 billion in value by 2030 from the current $45 billion, a new report predicts. The ‘Future of GCCs in India - a vision 2030’ report prepared by professional services company EY further said that India will have 2,400 GCCs by 2030, which could further increase to 2,550, positioning the country as the global hub for technology and services. 

This growth will be on the account of country’s skilled talent pool, business and policy environment, and growing infrastructure, the report added. The number of new GCC set-ups every year is expected to grow from 70 to 115.

Arindam Sen, partner and GCC sector lead - technology, media and entertainment, and telecommunications, EY India said that a large number of global leadership roles based in India could positively impact the growth of GCCs in the country up the value chain through innovation, product development, and digital transformation.

The headcount of the GCC industry in India is expected to increase from the current 1.9 million people to 4.5 million. These centres are also turning to Tier-2 cities for skilled talent at lower salaries, reduced cost of real estate, improving infrastructure, and social security. Further, as per the report, the workforce costs, which is calculated as overall cost per full-time equivalent (FTE), will increase from $29,100 to $37,760 by 2030. This increase is due to rising salaries, focus on employee value proposition, fee of recruitment agencies, and investment in training.

The report highlighted other GCC trends, which include upcoming centres of excellence (CoE) in AI, cloud, engineering, and cybersecurity; focus on generating newer revenue streams; greater emphasis on employee value proposition; expansion function areas like legal and marketing.

As per management consulting firm Zinnov’s report published in February, Bangalore has emerged as the top destination for companies to set up their centers. In India, 11 new GCCs were set up in Q4, of which eight have been in Bangalore.