Surging Growth in India’s GCC Landscape

India’s Global Capability Center (GCC) sector is witnessing remarkable expansion, with 24 centres surpassing the $1 billion export revenue mark in FY 2023-24. This growth, up from 19 the previous year, has significantly contributed to India’s $43.6 billion GCC export revenue, according to Pune-based consultancy Wizmatic. These centres, operational and technology hubs for multinational corporations, are becoming vital to Fortune 500 companies. Wizmatic founder Sandeep Panat highlights the emergence of giga capability centres in India, marking a shift in the industry’s trajectory.

Future Projections and Market Expansion

The number of billion-dollar GCCs has doubled from 12 to 24 over the last five years, with further growth anticipated. Consulting firms estimate that in 2028, India could host up to 2,100 GCCs, driving the market size to $90 billion. A Nasscom-KPMG report projects that by the end of 2024, the country will have around 1,900 GCCs, generating $60 billion in revenue. As these centres scale, they are expected to create additional jobs and boost India’s standing as a global outsourcing hub.

Debate Over GCC Classification

While some exclude Indian subsidiaries of IT service giants like Accenture and Capgemini from the GCC category, Wizmatic includes them, citing their operational models and legal structures aligning with traditional GCCs. “The revenue gets credited where the clients are, like the US or Europe, not India. For these firms, income is tied to where clients are located, not where the work is executed,” says Panat. He explains that these firms follow the cost-plus model, operating under transfer pricing norms regulating financial structuring and compliance.

Shifting Metrics

From Headcount to Revenue Historically, GCC success was measured by employee count, but the focus has shifted toward revenue and value creation. “Unlike IT service providers that maintain a bench workforce, GCCs function as specialized entities with dedicated service lines for their global parent organizations,” Panat states. Digital transformation and high-end services have propelled many GCCs beyond the traditional captive centre classification.

Future of GCCs

Efficiency vs. Growth Phil Fersht, CEO of HfS Research, notes that while GCCs currently emphasize efficiency, they have the potential to drive top-line growth through AI and innovation. “The simple fact that GCCs offer Indian talent a closer connection to global enterprises makes them a far more attractive career option than back-office service roles,” he says. However, challenges remain in fostering stronger collaboration between GCC leadership and enterprise executives.

Strategic Role in Driving Revenue

Lalit Ahuja, founder of ANSR, asserts that GCCs have always played a direct role in companies’ top-line growth. “With the maturation and scaling of GCCs, the ‘billion-dollar impact’ club is expanding rapidly. In 2024 alone, several of our portfolio companies have crossed the billion-dollar revenue mark,” he states. As GCCs transition from cost management to revenue generation, their strategic importance in global enterprises continues to grow.