As per a report by Deloitte and Nasscom, India’s global capability centres’ (GCC) revenue can increase from $33.8 billion (2019-20) to $60-$85 billion by 2025. For MNCs in India, GCCs are their technology and shared services arms.
In India, 1300 GCCs employ1.3 million people. The GCC revenue was $19.4 billion in 2015. This indicates that there is revenue CAGHR of 11% between then and the 2020 fiscal year. About 1% of India’s GDP is covered by the $33.8 billion revenue.
A measure of sales to the parent organizations and to other industries is denoted by the GCC sector’s direct gross output. As per Gaurav Gupta, a partner in Deloitte India, GCCs have played a key role in the growth of global organizations who have utilized top Indian talent to ensure growth and profitability. He states that GCCs have also assisted in the development of local capabilities and the impact is way more than the direct economic or tax contribution.
As per the Deloitte report, although many GCCs have taken important steps in delivering more value-added work, many nations still consider India as a ‘high volume, low cost’ location in comparison to other countries such as Singapore, Israel, and Ireland. These countries are taking necessary steps to ensure that they are positioned as ‘new age, high value’ economies.