Global Capability Centers (GCCs) are strategic units that companies establish to manage essential functions like R&D (Research and Development), IT (Information Technology), and BPM (Business Process Management) in locations separate from their headquarters. The primary goal of these centers is to utilize local talent, technological advancements, and economic benefits to bolster a company's global operations.
As of 2023, India boasts a robust network of GCCs:
GCCs in India are experiencing a shift in geographic distribution:
Sukanya Roy, Head of GCC and BPM at Nasscom, emphasizes India's potential to become a leading hub for GCCs, attributing this to its digitally skilled talent, strategic geographical location, and visionary leadership.
Mohammed Faraz Khan, Partner at Zinnov, highlights the evolving role of Indian centers in the automotive and aerospace sectors, pointing out a significant shift from hardware-led to software-led engineering.
Q1. What are Global Capability Centers (GCCs)?
Answer: Global Capability Centers (GCCs) are specialized units established by companies to manage functions such as R&D, IT, and BPM in locations distinct from their headquarters, maximizing local resources and talent.
Q2. How many GCCs are there in India as of 2023?
Answer: As of 2023, there are 1,580 GCCs in India, employing over 1.66 million professionals, indicating significant growth in this sector.
Q3. What are the growth trends for GCCs in India?
Answer: The market for GCCs in India is valued at approximately $46 billion, with a compound annual growth rate (CAGR) of 11.4% and the establishment of 18 new centers in 2023.
Q4. Which cities are emerging as new GCC hubs in India?
Answer: Besides the established Tier 1 cities like Bengaluru and Hyderabad, Tier 2 cities such as Vadodara, Nasik, and Coimbatore are gaining traction as new hubs for GCCs.
Q5. What advantages do GCCs offer to companies in India?
Answer: GCCs in India provide access to a talented workforce, foster innovation through a vibrant startup ecosystem, and offer strong leadership and networking opportunities.
Question 1: What is the primary purpose of establishing Global Capability Centers (GCCs)?
A) To centralize all operations in one location
B) To manage essential functions in diverse locations
C) To eliminate local talent pools
D) To reduce operational costs only
Correct Answer: B
Question 2: Which of the following cities is NOT a traditional hub for GCCs?
A) Bengaluru
B) Vadodara
C) Pune
D) Hyderabad
Correct Answer: B
Question 3: What key factor contributes to the growth of GCCs in India?
A) Decreased workforce availability
B) Lack of technological advancement
C) Access to a digitally skilled workforce
D) Centralized decision-making processes
Correct Answer: C
Question 4: As of 2023, how many professionals work in GCCs in India?
A) 1.5 million
B) 1.66 million
C) 1.8 million
D) 2 million
Correct Answer: B
Question 5: What is the estimated market size of GCCs in India in 2023?
A) $40 billion
B) $46 billion
C) $50 billion
D) $55 billion
Correct Answer: B
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