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

Increased Diversification over last One Decade

Enterprises from the USA continue to dominate the Indian GCC space with nearly 67% share, although shares of enterprises from EMEA and APAC is fast-growing as observed over the last 5 years. Also, large enterprises with more than USD 50 billion revenue were predominantly riding the GCC wave in India prior to 2020. However, that seems to have flipped with nearly 55% of the new GCCs been accounted for by sub-USD 10 billion firms in the most recent 3 years (2021-23). Smaller enterprises are beginning to realize the need for tapping into offshore locations such as India to bridge the wide gap in talent availability and costs.

India is no longer seen as an offshoring / product development center for merely the tech-oriented or business process management companies. Share of sectors such as Engineering & Manufacturing (E&M), BFSI and Healthcare have moved up significantly in the last one decade within the GCC space. More recently, there is a much larger share of E&M (>1/3rd) and BFSI (18%) companies setting-up innovation or R&D centers in India.

42%

35%

30%

20%

18%

16%

15%

11%

6%

6%

IT-BPM IT-BPM

Engg. & Mfg. Engg. & Mfg

BFSI BFSI

Healthcare Healthcare

Others Others

2014 & Before 2015-2023

Source: NASSCOM, Cushman & Wakefield Research

Distribution of GCCs in India Based on HQ Location (2023)

GCCs Influx into India - Split by Revenue Size

55%

22%

1025

840

39%

24%

32%

21%

434

18%

18%

16%

330

51%

9%

121

80

>50 BN

25-50 BN

10-25 BN

<10 BN

2019

2023

2019

2023

2019

2023

2020 & Before 2021-2023

% of GCCs

AMERICAS

APAC

EMEA

*This chart represents shares within the top 100 GCCs in India by footprint, and these account for >50% of total GCC footprint in India

Source: NASSCOM, Cushman & Wakefield Research

28% GCCs set up in last 2 years have HQ in US

28% GCCs in India are from Europe

51% Growth in Asian Firms setting up GCCs in India

55% GCCs set up in last 3 years are firms with <$10 Bn revenue

2/3rd GCCs set up in 2022 23 are small first-time entrants in India

<10% GCCs set up in last 3 years are firms with >50Bn revenue

Source: NASSCOM, Cushman & Wakefield Research

Note: The revenue-split chart is representative of the top 100 GCCs in India, and these account for >50% of the GCC footprint in the country

GLOBAL CAPABILITY CENTERS: 22

23

Key Hotspots and India’s Rise as the GCC Capital