January 27, 2025
The GCC ecosystem in India is forecast to grow from 1,700 in 2024 to 2,100 by 2030, with non-US GCCs growing at a CAGR of 6.8%, nearly double the growth rate of US-based centres
Over 60% of Forbes Global 2000 Japanese companies have yet to set up GCCs in India, despite proven success stories from firms such as MUFG, Takeda, and Sony
Non-US companies are increasingly attracted to India’s IT, artificial intelligence, and analytics expertise. Cost savings of up to 70% make the country an appealing offshoring destination
Modernisation, local tech skills shortages, and the demand for multilingual support across key industries such as manufacturing, BFSI, and pharma drive Europe’s growing reliance on India
India will likely witness a 15–20% rise in non-US companies establishing global capability centres (GCCs) over the next two years, with nations such as the UK, Germany, Japan, and Nordic countries leading this growth.
The success of US companies’ GCCs has created a blueprint that non-US firms are increasingly following. Experts note that businesses can achieve cost savings of 60–70% by offshoring technology and back-office operations to India, making the country a strategic GCC hub. Despite this, over 60% of Forbes Global 2000 Japanese companies have not established such centres in India. However, existing Japanese-origin GCCs, such as those set up by MUFG, Takeda, and Sony, showcase India’s strength in IT, artificial intelligence, and analytics, presenting a significant opportunity for further adoption.
India’s GCC ecosystem, currently at 1,700 centres, is forecast to expand to 2,100 by 2030. Non-US GCCs contribute significantly to this growth, accounting for 35–38% of the ecosystem and growing at a compound annual growth rate (CAGR) of 6.8%, compared to the 3.8% CAGR of US-based GCCs. The UK and Germany are key drivers of this expansion, with 7.6% and 6.5% growth rates, respectively. Currently, around 55–60% of GCCs in India are US-headquartered, while 15–20% are from Europe, 6–8% from the UK, and 10–12% from the Asia-Pacific region.
Over the past five years, GCCs from the Asia-Pacific region have grown by more than 65%, while those from Europe, the Middle East, and Africa have increased by 35–40%. In contrast, US-based GCCs have grown at a slower rate of 20–25%. Experts predict this growth trajectory will continue over 2–3 years.
Europe’s reliance on India for technology operations is increasing, particularly in regions such as France, the Nordics, and the Benelux (Belgium, Netherlands, and Luxembourg). This trend is driven by rapid modernisation, a shortage of local tech talent, and the need for multilingual support across industries like manufacturing (Industry 4.0), automotive, BFSI, pharma, and retail.
India’s GCCs have evolved beyond providing backend support, with many now focusing on innovation in AI, machine learning, data analytics, and cloud technologies. The country hosts over 120,000 AI professionals across GCCs and centres of excellence, with more than 180 GCCs maintaining dedicated AI/ML centres.
Despite its advantages, non-US companies face challenges setting up GCCs in India. These include lagging infrastructure in some tier-1 and tier-2 cities, competition for skilled workers, and high attrition rates due to cultural differences and collaboration challenges. Additionally, India’s regulatory framework, including tax, labour, and data privacy laws, alongside compliance with Europe’s GDPR, adds complexity to the process.
Experts suggest that as global businesses increasingly seek to leverage automation, generative AI, and machine learning for growth and profitability, India’s strategic importance in the GCC landscape is set to rise further.
Source: Economic Times