What are Global Capability Centres
India’s Race to Become the Global Hub for GCCs: Global Capability Centres (GCCs), also known as Global In-house Centres (GICs), are offshore units established by multinational firms to provide services like IT support, R&D, and customer solutions to their parent companies. These centres work as an extension of the parent organisation and function entirely within its structure.
India has emerged as a top destination for GCCs due to multiple strategic advantages such as cost efficiency, a digitally enabled environment, and a large, English-speaking skilled workforce.
Status of GCCs in India
As of 2024, India hosts more than 1,800 GCCs, accounting for nearly 50% of the global total. The sector has seen robust expansion, with one new GCC set up every week in 2024 alone.
These centres contribute significantly to India’s economy, with a gross value addition (GVA) of $68 billion, expected to grow to $150–200 billion by 2030. They currently employ around 2.16 million professionals, a number projected to reach 2.8 million by the end of the decade.
Static GK fact: The GCC sector contributes approximately 1.6% to India’s national GDP, growing at an impressive 11% CAGR over the past five years.
Why India is Preferred
India offers highly skilled talent at competitive costs, making it a global hotspot for corporate outsourcing. The government’s push for Digital India, development of Smart Cities, and continuous policy evolution has built a business-friendly environment.
Static GK fact: English is the second-most spoken language in India, which boosts the appeal of Indian talent to global firms.
Other major drivers include a large consumer market, favorable time zone overlaps, and improving data infrastructure.
Key Challenges Hindering Growth
Despite the growth, the Finance Minister recently highlighted key concerns. The limited availability of skilled talent in Tier-II and Tier-III cities is slowing expansion. Moreover, infrastructure gaps, especially in digital and transport connectivity, remain a hurdle.
The complex regulatory framework and growing cybersecurity threats also discourage some Fortune 500 companies from establishing GCCs in India.
Strategic Interventions Needed
To enhance India’s positioning, experts recommend the following steps:
- Embrace emerging technologies like AI, automation, and cloud computing to build smarter GCC operations.
- Adopt agile governance to quickly respond to global geopolitical uncertainties and shifting regulatory landscapes.
- Upskill the workforce, especially in digital and soft skills, and promote hybrid work models for better productivity.
- Align all growth efforts with Environmental, Social, and Governance (ESG) benchmarks to ensure sustainable expansion.
Static GK Tip: India’s IT-BPM sector, a major enabler of GCC growth, is regulated by NASSCOM (National Association of Software and Service Companies).
Government and Industry Role
The Finance Minister has emphasized that collaborative efforts between government and industry are essential. This includes offering policy incentives, simplifying regulations, and investing in future-ready infrastructure, especially in underserved regions.
India’s GCC journey presents a powerful opportunity to position itself as a global operations nerve centre. However, its success depends on addressing foundational gaps while embracing future-ready solutions.
Static Usthadian Current Affairs Table
India’s Race to Become the Global Hub for GCCs:
| Topic | Detail |
| Full form of GCC | Global Capability Centre |
| Total GCCs in India | Over 1,800 |
| India’s global GCC share | Around 50% |
| GCC GVA in 2024 | $68 billion |
| Projected GVA by 2030 | $150–200 billion |
| Workforce employed | ~2.16 million (expected 2.8 million by 2030) |
| Growth rate | 11% CAGR |
| Major challenge | Lack of skilled workforce in Tier-II and III cities |
| Main enabler | Cost-effective, English-speaking workforce |
| Regulatory body for IT-BPM | NASSCOM |
