By Debasis Panda
As organisations mature their global operating models to thrive in the digital age, global capability centres (GCCs) are becoming increasingly vital. Over the past few years, the role of GCCs has undergone a transformative shift, marked by innovation, resilience, and strategic evolution. Not so long ago, such facilities didn’t feature in annual earnings reports. However, now companies globally highlight GCCs as vital strategic assets.
As per a annual GCC report by Nasscom, released in December 2024, India is home to over 1,800 centres, accounting for nearly 50% of all GCCs worldwide, with a projected CAGR of 15% till 2030. GCCs are proving their value to enterprises through enhanced innovation, efficiency, and competitiveness. This growth will also contribute to GDP and the continuous upskilling of local talent, making India more competitive.
GCCs play a crucial role in positioning India’s growing prominence in the global business landscape. They are not only seen as growth drivers by businesses but are now also recognised by the Centre and state governments as engines of economic growth, job creation and regional development. Karnataka, Tamil Nadu, Maharashtra, Andhra Pradesh, Uttar Pradesh, Madhya Pradesh, Kerala and Odisha are taking proactive steps to attract GCC investments in unexplored cities. Karnataka aims to add 500 new GCCs by 2029, which will create 350,000 jobs and generate $50 billion in incremental revenue. Similar initiatives in other states reflect a broader strategy to decentralise economic activity and promote balanced regional development.
By expanding their GCC presence into these cities, companies can tap into high-quality talent pools. From a governmental perspective, attracting GCCs to smaller cities is a win-win proposition. It fosters urbanisation, creates employment, and boosts tax revenues. Importantly, this expansion does not come at the expense of tier 1 cities. Instead, it complements existing operations.
The expansion of GCCs into tier 2 cities represents a transformative opportunity for India. It mirrors the kind of balanced urbanisation seen in the US during the 20th century and currently unfolding in China. India can evolve from having just a handful of major metropolitan centres to featuring a network of developed cities showcasing its prowess as a global STEM leader.
This vision will not materialise overnight. However, the foundations are being laid through targeted policies, investments in education and infrastructure, and strategic collaboration between governments and businesses. These set the stage for a future where tier 2 cities will play a keyrole in India’s economic narrative.
The next chapter in the evolution of GCCs is one of strategic scope expansion and decentralisation. They will not only unlock new avenues for growth but also contribute to more sustainable career opportunities across the country. This shift in government support promises to further the country’s position as a global hub for innovation and talent and contributes to India becoming a developed country by 2047.
The writer is head, TransUnion GCC India, Costa Rica & South Africa.
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