Global Capability Centers, often referred to as global in-house centers or captives, are offshore divisions of large multinational corporations that focus on specific technology operations. These centers are pivotal in fostering innovation and providing top-tier technology solutions, particularly from countries like India.
As of the fiscal year 2022-23, India boasts around 1,580 GCCs, employing approximately 1.66 million individuals. This significant presence highlights the country's role as a hub for technology-driven operations.
Traditionally, Tier-I cities such as Mumbai, Pune, and Bengaluru have been the prime locations for establishing GCCs. However, there is a noticeable shift as many existing GCCs are now venturing into Tier-II and Tier-III cities. This strategy aims to derisk their operational portfolios while capitalizing on lower costs and the availability of skilled talent.
In this expansion phase, several Tier-II and -III cities have emerged as key players in the GCC landscape. Notable cities include Ahmedabad, Mysuru, Vadodara, Nashik, Tirunelveli, and Coimbatore. These cities are quickly becoming popular destinations for new GCC establishments.
GCCs located in Tier-I cities are strategically identifying strong leadership candidates who are amenable to relocating to Tier-II and -III cities. This enables them to build and expand their operations in these new locations. The centers often have a deep understanding of their internal demographics and are capable of functioning effectively in a remote setting.
The expansion of GCCs has led to a remarkable increase in workforce demand across various sectors in Tier-II cities. According to the consulting firm ANSR, there has been a 30-40 percent surge in demand for skilled labor. This growth not only creates substantial employment opportunities but also significantly contributes to the economic development of these cities.
Kutos : AI Assistant!
