The market size of India’s GCCs is set to reach $60 billion from the current $46 billion, with the total number of GCCs crossing over 1900 by 2025.
The addition in the last quarter of FY 23 was the highest in the past five quarters, according to a NASSCOM – Zinnov GCC report released on Thurdsay. The report said The GCC market size in FY23 was $46 billion, up from $36 billion in FY21.
The total number of global capacity centres (GCCs) as of December 2022 was about 1,520. Previous reports of NASSCOM-Zinnov said India added 11, 15 and 19 GCCs in the first three quarters of FY23.
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The current report estimated that the market size of the GCCs is set to cross $60 billion by 2025.
“India is set to witness a significant growth, with an anticipated 1900+ GCCs, a projected headcount exceeding 2 million and a market size of $60 billion by 2025,” the report added.
It stated that while tier-1 cities continue to remain the preferred choice, there is a noticeable trend of tier-2 and tier-3 cities rapidly catching up.
It said these smaller cities offer operational convenience, cost advantages and access to a pool of digitally skilled and affordable talent, as attractive value propositions.
Debjani Ghosh, president of NASSCOM, said, “The GCCs in India have helped India’s tech industry remain resilient amid the current upheaval in the global market. The ecosystem not only fortifies India’s tech industry but also facilitates profound collaborations with start-ups, academia and external partners to harness cutting-edge technologies and fuel innovation.”
Pari Natarajan, CEO of Zinnov, said, “India is at the epicentre of the GCC 4.0 wave, where India GCCs and their leaders are redrawing the blueprint of globalisation by going beyond a cost and scale retrospective and helping their headquarters solve new problems across business, technology and people.”
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The report said the GCCs journey in India in past two decades can be categorised into four timelines – till 2010 when the GCCs were just outposts for their headquarters, from 2010-2015 when the GCCs acted as satellites and from 2015-2023 when the GCC evolved into portfolio hubs. From 2023 onwards, the report stated the GCCs will become transformation hubs.
From 2010 till 2023, the market size of GCCs grew from $11.5 billion to $46 billion by end of FY23. Even the number of GCCs grew from just 700 to 1,580 as of FY23.
