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

Impacts of three black swan events on Indian offshoring and tech industry over the years –

Post dot.com/Y2K Impact

Post-GFC Impact

Accelerating GCC ecosystem

Export revenues in the indian IT Industry (US$ bn)

India IT-BPM revenue growth (in USD million)

Post-Covid 19: Rise in no. of GCCs enterning India

Avg. 120 GCCs to enter India p.a

50.91

160

140

Avg. 75 GCCs enter India p.a

120

2100+

100

Avg. 60 GCCs enter India p.a

1600+

80

18.05

60

1000+

700+

40

20

0.63

3.71

-

2008 2009 2010 2011

2012 2013 2014 2015

1995

2000

2005

2010

2010

2015

2023

2028E

Total no of GCCs

Source: RBI

Source: NASSCOM Data

A gradual evolution of IT-BPM industry in India over last -25 years, later culminating into a sophisticated GCC ecosystem

Over the last 25 years, when three black swan events significantly impacted global GDP, Indian enterprises were instrumental during each crisis, leveraging on their IT capabilities and STEM talent pool. Today, India plays a critical role in multinational corporations’ quest for digital transition, underscoring its strategic significance in fostering business resilience and driving innovation.

suggesting that there are good opportunities created within the start-ups and GCCs in the country. Consequently, Bengaluru’s tech workforce ratio compared with that of Silicon Valley, USA stands at 3.6:1 today, thereby highlighting the scale of talent available in the country. India is home to largest pool of STEM (Science, Technology, Engineering and Mathematics) talent in the world, following China, with an estimated 2.55 million annual STEM graduates (2020 est.). Besides, NASSCOM estimates that India has the third largest pool of AI talent globally with a 16% share, and this pool continues to grow. A think tank of Paulson Institute, USA – MacroPolo – mentions that India is the third largest origin of top-tier AI researcher, after USA and China, and the ability of the country to retain this talent has grown immensely over the last 4-5 years

18

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GLOBAL CAPABILITY CENTERS:

Key Hotspots and India’s Rise as the GCC Capital