ACCELERATING THE GROWTH OF GLOBAL CAPABILITY CENTRES (GCCS) IN INDIA

The Global Capability Centre industry in India has emerged as a cornerstone of the country's economic growth, driven by sectors like software, internet services, engineering research & development (ER&D) and others. This report highlights need to harness India’s potential and making it a global leader in high end technological work by formulating a comprehensive national GCC policy. The report presents critical challenges faced by GCCs and provides ways for capitalizing on opportunities for innovation, talent development, and sustainable growth.

The report provides an overview of GCC industry which is experiencing rapid growth in India, driven by concentrated activity in the top six cities, leveraging extensive office space infrastructure. Currently, more than 90% of GCCs are in these urban hubs. In the natural course, projections suggest significant expansion, with the market expected to double from US$ 50B in FY24 to US$ 110B by FY30, indicating a robust CAGR of 14%. This growth underscores India's strategic importance as a leading destination for GCCs, driven by favourable factors such as skilled talent, cost efficiencies, and supportive infrastructure.

The report undertakes a comparative analysis of eight Indian states’ policies viz. Gujarat, Haryana, Madhya Pradesh, Maharashtra, Karnataka, Tamil Nadu, Telangana, and Uttar Pradesh. The report benchmarks these states on different parameters individually as well as overall. The report also undertakes comparative analysis of five international locations & their policies vis-à-vis India and highlights India's cost efficiency and large skilled workforce as key advantages. Amongst the five countries studied, USA excels in infrastructure and supportive government policies, while Malaysia offers competitive labour costs and a strategic location for APAC markets. Costa Rica shows promise with its growing tech talent pool and pro-business policies, whereas Mexico faces issue of skill shortages. Poland provides strong language skills for European operations but faces higher labour costs. The report also touch bases few other countries like Philippines, China and Brazil. Understanding their strengths and nuances is crucial for businesses seeking optimal locations for establishing or expanding their GCC operations globally.