With a humble beginning, the Global Capability Centre (GCC) journey began in the 1990s, and by the 2000s, it was still unclear where it was headed. By 2010, GCCs (then known as Captive Centers) were still viewed with scepticism. These centres were often seen as distant, isolated entities, serving primarily as cost-saving units for global corporations. The term “Captive” was viewed negatively, denoting an entity locked away from the parent organisation with no identity.

In those early days, GCCs were set up with the singular objective of cost arbitrage—operating thousands of miles away from the parent company to drive down operational expenses. There was no recognition of the value these centers could bring beyond cost savings. But over time, the narrative changed, and so did the aspirations of the Indian workforce.

THE SHIFT TO VALUE CREATION

In 2024, we find ourselves in a significant position. Indian GCCs have moved beyond mere cost-saving centres to becoming value creators for global corporations. Companies such as Goldman Sachs and Morgan Stanley have seamlessly shifted significant workloads from disrupted regions like China to India. This shift happened effortlessly, especially during the COVID-19 pandemic, which tested the resilience of global operations. India’s tech ecosystem, working across different time zones, emerged as a global lifeline.

The pandemic was a turning point, where India’s GCC ecosystem proved its capability to maintain operations despite regional disruptions. The trust earned during this period is invaluable. Today, companies no longer establish GCCs in India merely for cost savings, but they have realised that a global corporation cannot exist without a Global Capability Center in India.

Also Read :- STPI’s Role in Transforming India’s IT Sector

THE MOMENTUM OF GROWTH 

Currently, India adds two GCCs every week. This momentum speaks volumes about the demand the Indian workforce has created. As we look toward the future, it is time for a reboot— not of our successes but of the systems that support them. We need to reboot the talent ecosystem that was built in the late 1990s and 2000s, initially geared towards the Y2K market and later the service provider market.

India produces approximately 720,000 computer science and software graduates every year. But the question remains: are they ready for the next wave of GCC growth? Corporations are no longer just seeking graduates; they want engineers capable of handling the complexities of the new digital landscape. Our education system must evolve to keep pace with the demand for skilled talent in GCCs.

EXPANDING BEYOND TRADITIONAL HUBS

As we move forward, we must also rethink the geographic concentration of GCCs. Currently, cities like Bangalore, Hyderabad, and Chennai are home to the largest tech ecosystems, with Bangalore alone employing over 20 lakh tech professionals. By 2030, Bangalore will need to accommodate 30 lakh tech workers, a monumental challenge given the city’s infrastructure constraints.

It’s imperative that we expand beyond the known tech hubs. Cities like Trivandrum, Gujarat’s GIFT City, and Madurai are emerging as new centers of innovation. The time has come to dispel the myth that top-tier work can only be done in cities like Bangalore or NCR. In fact, Ernst & Young’s largest GCC is in Trivandrum, showcasing the potential of smaller, emerging towns to handle high-quality work.

A CALL FOR LEADERSHIP AND RESPONSIBILITY

India is currently home to over 1,700 GCCs, employing close to 1.9 million people, a number that is expected to double in the next seven years. This growth, however, comes with responsibility. As leaders, we must reboot our leadership mindset. The early GCC leaders were excellent delivery managers who built scale. Today’s third-generation GCC leaders must focus on value creation, innovation, and the development of talent.

Moreover, we must shed the subservient mindset that has been ingrained in us from the service industry days. Indian leaders should no longer feel the need to roll out the red carpet for foreign visitors or work round the clock to cater to international counterparts. We have proven our capability; now, it is time to act with the confidence of global leaders.

Also Read :- Reinventing GCCs a Strategic play for global leadership and sustainability by 2030

THE GLOBAL COMPETITION

While India remains a dominant force in the GCC ecosystem, competition is emerging from unexpected quarters. Saudi Arabia, for instance, is aggressively positioning itself as a global hub for talent, offering competitive salaries and incentives to attract talent from India. Vietnam, Poland, and the Philippines are also vying for a share of the market.

Our country has the scale, producing 17 lakh engineering graduates annually, but we must continue to innovate and evolve to retain our leadership. If we fail to take on this responsibility, the market could shift to South America, Eastern Europe, or Southeast Asia.

India’s GCC ecosystem is poised for continued growth, but this growth will only be sustainable if we reboot the systems that have brought us this far. Rebooting talent, leadership, and geographic diversification will ensure that India continues to lead the world in Global Capability Centers. As I look toward 2030, I am confident that India will retain its 48-50% market share in the global GCC landscape—but only if we remain vigilant and proactive.

Views expressed by KS Viswanathan, Chief Mentor, Stratinfinity