Global Capability Centers: Key Hotspots and India’s Rise as the GCC Capital

Cost Arbitrage: Total Cost of Operations (TCO) (Per Employee Per Annum Basis)

As one can notice, each geographical region has presence of few GCC hotspots, and it was potentially created that way to enable near-shoring of support functions from headquarters in the US, UK or Europe. However, as digitalization flourished across the emerging world, countries falling in other time zones have also become equally attractive. South Asian economies such as India and Philippines have been at the forefront in terms of benefitting from offshoring. Today, these two economies have become mature GCC destinations owing to its vibrant pool of tech talent, pro-active government policies, stable politics, and cost competitiveness. India has been attracting high amount of attention from global enterprises not only owing to its vast talent pool, but also due to its huge and fast-growing market size. Cities such as Bengaluru, Hyderabad, NCR-Delhi, Chennai, Pune and Mumbai offer an ecosystem that breeds a culture of innovation and niche talent pool, and the cost of GCC operations is also merely a fraction. As a result, the country is already home to nearly 50% of all GCCs worldwide, further fueling a virtuous cycle of product as well as process-oriented innovation.

146,653

45,855

144,816

30,786

186,214

33,570

85,882

63,416

40,270

33,083

39,251

APAC

NORTH AMERICA

• All values are in USD • Data calculated is on “Per Employee” basis across cities • TCO is a mix of costs w.r.t. office rentals, CAM, fit-outs, talent and facilities management

EMEA

SOUTH AMERICA

GLOBAL CAPABILITY CENTERS: 14

15

Key Hotspots and India’s Rise as the GCC Capital