18 new GCCs established in India in H1CY23: Report

A total of 18 new global captive centres were established in India in the first half of 2023, with nine set up in Q1 and the other half in Q2, a new report has found. The report titled India GCC Trends — Half Yearly analysis, H1CY2023, prepared jointly by industry body Nasscom and Zinnov further stated that companies are looking beyond tier-1 cities like Bengaluru as preferred locations and exploring tier-2 locations like Vadodara, Nasik, and Coimbatore, especially in verticals such as industrial, Fast-Moving Consumer Goods (FMCG), retail, electrical and electronics, and software and internet.

To be sure, as of FY2023, India has over 1,580 GCCs with a total market size of $46 billion, growing at a compound annual growth rate (CAGR) of 11.4%. The GCC segment in India has grown both on scale and value, with about 83% of all GCCs having all three functional areas of engineering research and development, IT, and business process management (BPM).

“In automotive and aerospace sectors, the transformation from hardware-led to software–led engineering has broadened the role of India centres, India’s prowess in cutting-edge software, digital engineering coupled with technology talent highly skilled in embedded software, cloud computing, artificial intelligence (AI), machine learning (ML), and deep learning, are helping global companies reshape the landscape of these sectors from India,” said Mohammed Faraz Khan, Partner at Zinnov.

The Indian GCC market can potentially grow up to $110 billion in value by 2030 from the current $45 billion, another report released in June predicted. 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.