What lies ahead for GCCs in India after a pivotal year
Subscribe to enjoy similar stories. For global capability centres (GCCs) in India, 2024 was a pivotal year. Until 2010, GCCs were mostly outposts of multinational corporations (MNCs), providing technology and operational support to the parent company, according to Zinnov, a management consulting firm.
By 2015, they had matured into satellites, offering more comprehensive solutions in select business lines. In the decade that followed, they evolved further into centralised hubs for a range of technologies. They piloted innovative projects and developed expertise in areas such as artificial intelligence, analytics and blockchain.
Now, in 2024, they are managing global transformational projects, impacting profits. As MNCs – mainly from the US but increasingly other markets too – see the potential of GCCs, they have been setting up centres in India and stepping up their investments. In 2023-24, India had about 1,700 GCCs employing about 1.9 million people, up from 1,580 GCCs and 1.65 million employees a year earlier, according to Nasscom and Zinnov.
Against the year-on-year personnel growth of 14.5%, revenues of GCCs in India jumped 40% to $64.6 billion. In contrast, Indian IT services companies grew 5.5% in 2023-24 and are projected to grow 4-6% in 2024-25, according to rating agency Icra. This is only partly because of their higher base.
Demand for IT services has been muted in the past couple of years. GCCs, on the other hand, have been accelerating, as MNCs seek to leverage local talent, reduce costs and enhance their operational efficiency. Also read: How the Indian economy fared in 2024, in 9 charts India has a large number of engineers talent, second only to China.
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