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

India has emerged as a dominant GCC hub, hosting over 50% of all GCCs globally. The annual influx of GCCs into India surged from 60 during 2010-15 to over 75 in 2015-23, and the expectation is that this number is poised to reach ~120 annually. GCCs now play pivotal role in innovation across diverse sectors such as technology, engineering, manufacturing, BFSI, and healthcare, by leveraging India’s extensive talent pool in STEM and AI.

India pivots at Crucial moments to create Growth Opportunities

World (Annual GDP Growth)

India (Annual GDP Growth)

20 MSF Gross Leasing (Avg 2000-02)

30 MSF Gross Leasing (Avg 2005-08)

34 MSF Gross Leasing (Avg 2010-11)

68 MSF Gross Leasing (2019)

80 MSF Gross Leasing (2024)

12

10

8

6

In each of these three black swan events, global corporations have had to grapple with potential consequences related either to technology disruptions, imbalances in jobs or talent, pressure for cost control, and environmental, health & wellbeing concerns. However, what was common throughout these black swan events was the need for inter-dependence of the advanced economies in America, the UK and Europe, with aligned nations in the emerging world such as India. Interestingly, enterprises in India played a crucial role for multinationals in the advanced world while seizing challenges posed during the global black swan economic events.

4

2

Annual GDP growth (%)

0

-2

Y2K

COVID-19

GFC

-4

Y2K: Two digits, one big glitch

Pandemic: World on pause - virus on move

GFC: Stocks crumble, Firms falter

-6

• Systems failure, redundancies • Back office and business support • IT support services and help desks • Share of IT in India’s GDP at 1.2%

• Increased focus on innovation led competencies • GCCs driving new tech & automation • Global leadership & growth in newer markets • Share of IT India’s GDP at ~8%

• Cost pressures for global firms • Growth of Shared service hubs / Captives • Digital transformation, building product and service capabilities

COST ARBITRAGE

BUSINESS IMPACT

INNOVATION IMPACT

VALUE

DELIVERY EXCELLENCE

BPO EMERGENCE

SHARED SERVICES CENTERS GROWTH

GLOBAL CAPABILITY CENTERS

Source: IMF, World Bank, NASSCOM, Cushman & Wakefield Research

GLOBAL CAPABILITY CENTERS: 16

17

Key Hotspots and India’s Rise as the GCC Capital