GCCs estimated to grow at 14% in FY 25. touch 4.5% of GDP
Extract
from the article:
The recent projections for the growth of Global Capability Centres (GCCs) in
India are nothing short of spectacular. Estimated to grow at a robust 14% in
the financial year 2025, GCC revenues are poised to contribute a significant
4.5% to India’s GDP. This remarkable uptick primarily stems from IT and
IT-enabled services (ITeS) operated by foreign multinational corporations
(MNCs) within the country. A consensus has emerged among experts that this
sector is not only thriving but stands as one of the most potent drivers of
India’s economic expansion today.
What underpins this growth are several factors: the
burgeoning pool of specialized talent in technology, digital solutions, AI, and
analytics; a cost-effective operational environment; and government incentives
that promote infrastructure development. The expansion trajectory of GCCs is
further fuelled by heightened recruitment activities aimed at compensating for
high attrition rates, thereby ensuring the retention of competitive talent
critical to sustaining long-term growth. These dynamics weave together a
compelling narrative about India’s evolving role as a global hub for innovation
and service delivery.
My
Take:
A. MNC
Hiring in India: The Growth Trajectory
The echoes of this article reverberate profoundly with what I articulated in my
piece on MNC hiring trends in India a year ago. I had noted, "The overall
employable talent pool for skill sets GCCs are looking for is far larger in
India than in any other country," which evidently aligns with the
observation that India continues to attract large-scale investments for GCC
operations. The piece rightly foresaw the continued maturation of the GCC
ecosystem supported by infrastructure developments extending beyond
metropolitan hubs into tier-II cities. This foresight wasn’t merely optimistic
but grounded in tangible market shifts that are currently manifesting as
exponential headcount growth and expanding revenue contributions to India’s
GDP.
Reflecting on the persistent high attrition rates discussed
in that blog, I realize how essential it is for organizations to weave
retention strategies alongside their aggressive hiring campaigns. The recent
article’s emphasis on recruitment velocity and replacement hiring equally
affirms the nuances I had touched upon — it’s not just about scale, but about
sustaining quality and continuity within this talent-intensive segment. I feel
a resonance here, illustrating how foresight in understanding workforce dynamics
can be a linchpin in navigating this competitive landscape.
B. India
as the Brain Factory of the World
This earlier blog speculated on India’s ascent as a global intellectual hub,
noting that "Recruitment conversations with GCCs have gained speed this
fiscal as they are looking at restoring hiring volumes and velocity." The
fresh data confirming a 14% growth trajectory and the projected doubling of GCC
headcount to 4.5 million by 2030 only reinforce the credibility of that
forecast. My contention was that India isn’t merely a cost arbitrage
destination anymore; it is transforming into a crucible of innovation powered
by digital, analytics, and AI talent — and this article brings the numbers and
industry support endorsements to back that claim.
From a personal perspective, this alignment between
prediction and current reality is deeply gratifying. It underscores how some of
the undercurrents I observed amid the global service landscape were not
ephemeral trends but structural shifts. As India continues to scale up its
domiciled talent base and infrastructure, it solidifies its position not just
as a “factory” but as an intellectual powerhouse—a distinction critical for
policymakers and business leaders aiming for sustained global competitiveness.
Call
to Action:
To policymakers and industry leaders overseeing GCC growth and talent
development: the time to act decisively is now. Harness the momentum by
investing in scalable skilling platforms, nurturing tier-II and tier-III city
ecosystems, and designing retention frameworks that mitigate attrition without
compromising innovation. Strengthen collaboration between academia, industry,
and government to future-proof India’s standing as a preferred GCC destination.
The current growth projections offer a roadmap, yet only a concerted effort can
translate these promising numbers into a durable economic legacy.
With regards,
Hemen Parekh
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