Govt's facilitates entry of global cos keen on GCC ops in India
More than 150 multinationals have set up their GCCs in India over the last couple of years, says Economic Survey
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India GCC Favourite
- GCC’s account for more than 1% of the India's GDP
- India has come a long way to being at the epicentre of GCC growth
- India is a GCC favourite in hugely competitive global market
New Delhi: India is a GCC favourite in a hugely competitive global market, the Economic Survey said on Monday asserting that the government has a crucial role in facilitating entry of global players keen on setting up Global Capability Centre operations here. Lauding India's success story on the GCC front, the Survey said government support for identifying new business models for partnerships, simplifying the entry process, and emphasising trust and data security, among others, will further encourage the location of GCCs in India.
More than 150 multinationals have set up their GCCs in India over the last couple of years, it said tracing the journey from the "humble beginning of offshoring by Texas Instruments" all the way to India now emerging as a global favourite for GCC growth. Put simply, Global Capability Centers or GCC are offshore units set up by multinational companies to carry out a range of strategic functions for the parent. These units which previously engaged in simple back office functions have now evolved into handling some of the most complex functions across an organisation's value chain. "As more global players eye India to set up their GCC operations, the government has a crucial role in facilitating their entry," the Survey highlighted.
Citing GCCs' contribution to their parent organisations' success and in propelling economic growth in India, the survey said they account for more than 1 per cent of the country's GDP, a share that will only grow further. "Starting with the humble beginning of offshoring by Texas Instruments by setting up its office in Bengaluru in 1985, India has come a long way to being at the epicentre of GCC growth," it said.
In 2012, about 760 GCCs were operating out of India, that number swelled to over 1,000 in 2016 and 1,600 GCCs as of March 2023. GCCs provide bespoke services in operation, product development and innovation. They operate across all IT, BPO, engineering, and software product development service lines, delivering complex work that requires a significant understanding of business context and imperatives. "They have made a mark in key industry verticals such as banking and financial services, software, telecom and semiconductors, with a growing concentration in aerospace, automotive, oil and gas, healthcare and pharma," the Survey stated.
