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"Exploring the Advantages of Establishing a Global Capability Center in India"

Updated: Apr 29

Setting up Global Capability Centers (GCCs) in India presents a strategic advantage for businesses aiming to leverage the country's burgeoning market potential and rich talent pool. With an expected market size of $110 billion by 2030 and approximately 4.5 million skilled Indian professionals projected to be working for GCCs by 2030, India offers an unparalleled opportunity for companies to tap into its vast talent reservoir. The anticipated growth of GCCs, with an estimated 70% increase to around 2,500 centers by 2030, underscores India's attractiveness as a preferred destination for setting up operations.

India boasts a robust workforce specialized in IT & BPM sectors, set to reach 10 million by 2030, ensuring a steady supply of skilled personnel to meet the demands of GCCs. This abundant talent pool, combined with India's reputation as a leading player in the global IT industry, makes it an ideal location for companies seeking to establish GCCs and drive innovation.


Moreover, GCCs in India yield significant cost arbitrage, offering a competitive edge with savings ranging from 35-50% compared to operations in the home country and ~25% cost advantage compared to outsourcing firms. This cost arbitrage, coupled with India's favorable regulatory environment and supportive government policies, makes it an attractive destination for businesses looking to optimize their operations and enhance their bottom line.


Furthermore, India's participation in various international trade agreements, such as the India-EFTA Trade & Economic Partnership Agreement, creates a policy-positive environment that fosters mutual benefits by slashing import tariffs and promoting trade.


Additionally, India's leadership in AI research, with a remarkable skill penetration rate of 3.2, positions it as a frontrunner in the global AI landscape. With initiatives underway to establish India as an AI research hub, companies setting up GCCs in India can leverage this expertise to drive innovation and stay ahead of the curve in emerging technologies.


In conclusion, setting up GCCs in India offers myriad benefits, including access to a vast talent pool, significant cost savings, favorable regulatory environment, and opportunities for collaboration and innovation. With India's trajectory poised for continued growth and leadership in key industries, establishing GCCs in the country is not just a strategic move but a pathway to sustainable success in the global market. Begin your GCC journey today, speak with our GCC experts at LAT91!

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