While India has significantly contributed towards the growth of global orgnisations with Global Capability Centres (GCCs) leveraging quality talent and capabilities in India, GCCs also have contributed significantly in return. India has become home to capability centres of 1,300+ global organisations, directly employing 1.3+ million people, generating approximately US$33.8 billion in revenue as of FY2020, and creating a strong ripple effect in the Indian economy. The first wave of GCCs was primarily driven to provide the ‘wage and cost arbitrage’ benefits to the global organisations who were eagerly looking to free up capital to invest in their growth. Today, this sector has provided value far beyond the anticipated ‘wage and cost benefits.’ This sector has provided indirect employment to more than 5.5 million people, aided in creating world-class infrastructure in their communities, and in providing better quality of life to their employees and associates. As India tries to digitise itself, GCCs have significantly helped in developing the high-quality talent pool to meet the demand for the ‘digital growth engine’ of India. Additionally, a few GCCs have successfully experimented with mentoring start-ups, and this has significantly accelerated the evolution of the start-up ecosystem in India. While GCCs were set up with the intention to provide value to their global organisations, they have, in fact, emerged as a strong contributor to India’s progress. Not just as an employer and a source of rich skills for the ecosystem but also as a significant channel to bring global best practices to India, support India’s underprivileged, enhance India’s reputation as a global tech major through creation of world leaders, as well as provide the talent pipeline for India’s start-ups. While the contribution of individual GCCs and their journey does get adequate awareness, as a sector, the contribution of GCCs requires significantly more prominence in terms of both visibility and acknowledgements. This report looks at a comprehensive approach to see how GCCs contribute to India’s growth story. The extensive primary and secondary search-based study looks at contribution from six key dimensions – Source: NASSCOM, Deloitte Analysis economic, human capital, innovation and ecosystem, social, environmental, and reputational. Our focus is to present a holistic picture of the capability and value contribution of this sector. We also aim to explore the exponential effect this sector can have on India if we are able to address the challenges that can potentially limit the growth strategy of GGCs in India. We would like to express our sincere thanks to the India-based Global Capability Centre executives for investing their valuable time and giving us their inputs for this report. We hope you find this report useful.
GCC value proposition for India
