Global Capability Centres (GCCs) have undergone a remarkable transformation from their origins as mere back-office operations to becoming integral powerhouses within the global technology ecosystem. Once relegated to supporting roles for Fortune 500 companies, GCCs in India are now driving innovation and shaping the future of technology on a global scale. This evolution has significantly impacted India’s job market and solidified the country’s position as a hub for advanced technological development.
From Back Office to Tech Powerhouses
The journey of GCCs in India reflects a broader narrative of technological advancement and strategic evolution. Nearly 40 years ago, Texas Instruments set a precedent by establishing its R&D operations in Bengaluru, marking the beginning of a shift that would see India become a focal point for global technology companies. Today, with about 1,600 GCCs operating in the country—expected to reach 1,900 by next year—these centres are no longer just ancillary support units but are key players in the global tech landscape.
The economic impact of GCCs is profound. According to a Nasscom-KPMG report, the combined market size of GCCs in India has surged from $19.6 billion in 2014-15 to $60 billion in 2022-23. This growth trajectory, which represents a compound annual growth rate (CAGR) of 11.4%, highlights the sector’s expanding influence. Moreover, GCCs have created over 600,000 new jobs between 2018-19 and 2023-24, bringing the total employment in this sector to over 1.6 million. The latest Economic Survey projects that GCCs will contribute $121 billion to India’s GDP by 2030, with $102 billion coming from exports.
Significant Contributions and Innovations
The role of GCCs extends beyond job creation to include significant contributions to technological innovation. JPMorgan Chase, for example, has seen its headcount in India grow from 34,000 in 2018 to over 55,000, with a substantial portion dedicated to technology. Deepak Mangla, CEO of JPMorgan Chase’s corporate centres in India and the Philippines, highlights the integral role of Indian operations in the bank’s global strategy.
Goldman Sachs has similarly leveraged its Indian GCCs to evolve from basic support functions to high-value roles in algo trading, data analytics, and client reporting. Gunjan Samtani, global COO of engineering at Goldman Sachs, notes that these centres have become centres of excellence, driving innovation in equities engineering and trading platforms.
Texas Instruments remains a prime example of GCC innovation, with its Indian operations contributing to end-to-end chip design. TI India engineers are involved in every phase of chip development, from conceptualization to product engineering and testing, underscoring the high level of expertise and technical capability present in India.
GE Aerospace is another notable player, with its Bengaluru centre working on cutting-edge aviation technologies. GE’s investment in expanding its Pune facility further illustrates the significant role of Indian GCCs in advancing global manufacturing and technology development.
Evolving Roles and Higher Salaries
The transformation of GCCs also reflects a shift in job roles and compensation. Sangeeta Gupta, senior VP at Nasscom, emphasizes the growing importance of GCCs in corporate functions, analytics, and AI. The move up the value chain is creating opportunities for leadership roles and enhancing the overall impact of these centres.
Ramkumar Ramamoorthy of Catalincs predicts that GCC employment in India could surpass 4 million in the next five years. The sector’s impact extends to technology transfer and the development of advanced skills in areas such as AI, cyber engineering, and product management.
Lalit Ahuja, founder of ANSR, points out that GCCs are becoming competitive paymasters, with some roles commanding annual compensations of nearly $1 million. This trend highlights the high value placed on talent within GCCs and their role in shaping future leadership within global organizations.
Arindam Sen from EY India notes that strategic roles like CIOs and CTOs are increasingly being based in India, reflecting the growing influence of Indian GCCs in global decision-making processes.
Conclusion
The evolution of GCCs from peripheral support centres to central hubs of innovation and strategic operations marks a significant shift in the global technology landscape. By driving job creation, technological advancements, and higher compensation levels, GCCs are not only enhancing India’s position as a technology leader but also contributing substantially to the global tech ecosystem. As these centres continue to expand and evolve, their role in shaping the future of technology and the job market will undoubtedly become even more pivotal.
