India’s Global Capability Centres (GCCs) are projected to exceed $100 billion in revenue by 2030, according to the EY India GCC Pulse Survey 2024.
These centres are also expected to house 20% of the global workforce, highlighting India’s growing prominence in the global technology and business services landscape.
India’s GCCs: Employment Growth and Revenue Projections
GCCs in India have experienced significant growth over the past decade, with a compound annual growth rate (CAGR) of 6.6%.
The revenue generated by these centres has increased from $13.4 billion in 2020 to $20.8 billion in 2023, and is projected to reach $24.6 billion by 2024.
This upward trajectory is expected to continue, with Global Capability Centers contributing significantly to India’s GDP.
India’s GCCs currently employ an estimated 540,000 people, and this number is expected to grow as the centres expand.
The EY report indicates that GCCs will create over 2.5 million jobs across the country by 2030.
This growth in employment opportunities is a testament to the increasing demand for skilled professionals in areas such as IT, finance, and research and development (R&D).
GCCs have evolved from back-office operations to strategic hubs driving innovation and technology growth.
They now offer high-end services in areas such as cloud computing, AI/ML, data analytics, cybersecurity, and robotic process automation (RPA).
The focus on reskilling staff in emerging areas such as AI and GenAI is a key factor in the centres’ success.
Key Sectors and Contributions
The engineering, research, and development (ER&D) segment accounts for over 50% of GCCs’ total revenue, making it a vital force behind the centres’ advancement.
Additionally, GCCs are increasingly offering knowledge-intensive services in areas such as customer interaction, risk management, marketing, and legal services.
This diversification of services is unlocking greater value and potential for the centres.
A leadership-driven innovation culture is a crucial differentiator for 71% of GCCs in India.
The cultivation of a “digital mindset” is considered essential for enhancing workplace adaptability and driving innovation.
The adoption of AI within GCCs is accelerating. Nearly 70% of centres are investing in GenAI and 37% actively piloting GenAI use cases.
Economic Impact and Future Prospects
The growth of GCCs is expected to have a significant economic impact on India.
They have the potential to increase the country’s GDP by $359 billion to $438 billion through GenAI implementation by 2029-30.
This projection surpasses current baseline estimates and highlights the transformative potential of GCCs in India’s economy.
India’s GCCs are poised to play a pivotal role in the country’s economic growth and technological advancement.
These centres are projected to exceed $100 billion in revenue and house 20% of the global workforce by 2030.
As a result, they are set to drive innovation, create employment opportunities, and contribute significantly to India’s GDP.
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