GCC Ecosystem In India To Grow Despite Uncertainties

While some GCCs have seen layoffs, these are identified as company-specific rather than an industry-wide trend. The Nasscom-Zinnov report highlights India's current standing with around 1,700 GCCs in FY24, contributing $64.6 billion in exports and employing over 1.9 million people

The GCC (Global Capability Centre) ecosystem in India is likely to grow in coming quarters as more foreign companies are exploring ways to set up technology centres in the country.

Moreover, IT firms are aggressively chasing GCC clients for increasing their engagement on projects through various operating models, raising hopes of sustained growth in the GCC eco-system.

According to industry experts, despite macroeconomic uncertainty, global consultants are see-ing rising interest among foreign enterprises to set up technology centres in India. They also said that layoffs seen in some of the GCCs are specific to performance of those companies and it is not an industry-wide phenomena.

“We are witnessing an exciting shift in engagement on multiple fronts. Fresh contracts are emerging between both parties and collaborative representation at industry forums and con-ferences is on the rise. Key players are also crossing borders between the two setups. We are inundated with inquiries from IT/BPO providers and GCCs eager to discover the perfect op-erating model. It’s clear that both sides are enthusiastic about working together and exploring new opportunities,” Ashish Chaturvedi, Practice Leader (Retail and Consumer Goods, Supply Chain, Platforms) at HFS Research told the Bizz Buzz. India housed around 1,700 GCCs in FY24, generating $64.6 billion in exports. The segment has also emerged as one of the major employers of Indian technology talent by employing over 1.9 million people, according to the Nasscom-Zinnov report.

According to estimates, number of GCCs in India is likely to reach 3,000 by 2030 with cities like Bengaluru, Hyderabad, Pune, Chennai, Noida and many tier-II centres attracting such units.

However, some GCCs have started laying off employees in India and other centres. Such layoffs have raised concerns over sustainability over the growth trend. Industry experts said that such layoffs are very company specific and not general in nature.

“The recent wave of layoffs can be traced back to a perfect storm of challenges that business-es have been facing over the past five years. It all began with the pandemic, which shook the global economy, followed by regional conflicts that added more uncertainty. Then came the economic slowdown, and now we’re dealing with unpredictable tariff policies,” Chaturvedi said. He, however, said that GCCs would continue hiring in the coming quarters given their focus on cutting-edge technologies.

“GCCs that have evolved into innovation centres and are actively engaged in developing core offerings for their companies are more likely to see an increase in headcount, he added.