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India's GCC Boom: Unlocking a New Frontier of Talent and...

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3 days ago

by Meghna Mukul

India's GCC Boom: Unlocking a New Frontier of Talent and Innovation in 2025

India’s Global Capability Centers (GCCs) have been quietly scripting a revolution — and 2025 marks an inflection point. Evolving from traditional support hubs to strategic business drivers, India’s GCCs are transforming industries, redefining talent sourcing, and setting global innovation standards. According to the 2025 Nasscom-Zinnov GCC India Report, India's GCC market is projected to grow from $64.6 billion in FY24 to over $100 billion by FY30, maintaining a healthy 11-13% CAGR. The number of operational GCCs has crossed 1,750, with 1.9 million professionals, and industry experts predict a surge to 2,200 GCCs by 2030, employing over 2.8 million people.

Shifting Geographies: The Rise of Tier II and III Cities

Historically concentrated in Bengaluru, Hyderabad, and Pune, the GCC footprint is expanding into emerging hotspots like Coimbatore, Visakhapatnam, Ahmedabad, Jaipur, and Kochi. The rationale?

  • Talent Cost Arbitrage: Savings of 20–30% compared to metros.

  • Talent Availability: Rising technical education hubs outside metros.

  • Government Incentives: State-level SEZ benefits, single-window clearances.

Example:

  • Deutsche Bank announced its expansion into Jaipur with a 1,000+ people center focused on digital operations.

  • Walmart Global Tech expanded into Chennai and Coimbatore for analytics and product engineering functions.

  • EY is opening centers in Kerala and Gujarat, aiming to create over 10,000 new jobs outside major cities by 2027.

Today, 10-12% of India's tech workforce is based in Tier II/III locations, compared to just 5% in 2018.

Industry Diversification: GCCs Beyond IT

Traditionally banking and IT-driven, today's GCCs are evolving across new verticals:

  • Sanofi's Hyderabad Center focuses on AI-based drug discovery.

  • PepsiCo's Gurgaon R&D Hub works on nutrition sciences and product innovation.

Insight: Over 60% of new GCCs are now "digital native" — born with cloud, cybersecurity, AI/ML, and product innovation as core capabilities.

The Growth Drivers

  • Skilled Talent: India produces 1.5 million engineers annually — 2nd highest globally after China.

  • Digital Innovation: 50% of GCCs now lead global digital transformation initiatives.

  • Cost-Value Balance: Companies report 30–40% savings while achieving 20–25% faster innovation cycles.

  • Business Continuity: The pandemic established India’s credibility in remote operations and resilience.

Challenges Ahead

  • Talent Wars: Attrition rates in GCCs touched 22% in FY24, higher than traditional IT services firms.

  • Infrastructure in Smaller Cities: Need for improved airports, schools, healthcare to attract talent.

  • Rising Costs in Metros: Bengaluru, Hyderabad are facing salary inflations of 8–10% per annum.

In conclusion, India's GCC sector is not just growing — it's evolving. Organizations that innovate in talent strategies, embrace smaller cities, and align with digital-first agendas will define the future of GCCs in the global economy.

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