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Key Points

India is becoming a major hub for Global Capability Centres, capturing half of all new GCC setups worldwide. These centres are evolving from simple cost-saving operations into crucial hubs for innovation and business transformation. KPMG's report highlights a trend of GCCs expanding beyond major metros into Tier II and III cities for talent access. The number of GCCs in India is projected to grow from 1700 to 2400 by 2030, creating significant employment opportunities.

Key Points: India Captures 50% of New Global Capability Centres Says KPMG

  • India attracts 50% of new global GCCs due to ideal location and cost advantages
  • GCCs shifting from cost centres to innovation and transformation hubs
  • Tier II and III cities emerging as new hubs for talent and cost benefits
  • Projected growth to 2400 GCCs employing 2.8 million people by 2030
2 min read

50% of new GCCs being set up in India, location is ideal: KPMG's Vikas Gaba

KPMG's Vikas Gaba reveals India's ideal location and talent pool attracts half of all new GCCs globally, projected to grow to 2400 centres by 2030.

"Earlier perceived as just cost centres... are now increasingly becoming hubs of transformation and innovation - Vikas Gaba, KPMG India"

New Delhi, September 16

Around 50 per cent of new Global Capability Centres (GCCs) coming up globally are being set up in India because of its ideal location, Vikas Gaba, Partner and National Head - Power and Utilities at KPMG India, said on Tuesday.

The role of GCCs is increasingly critical, shifting from being mere cost centres to hubs of innovation and transformation; India is emerging as a significant base for GCCs due to its ideal location, large talent pools, and cost advantages, Gaba told ANI on the sidelines of the Global Energy Conclave - #ENRich2025 organised by KPMG India. The Conclave is now in its 16th edition.

"Earlier perceived as just cost centres, back-end cost centres are now increasingly becoming hubs of transformation and innovation, and India is becoming a big base of GCCs," he told ANI.

The discussions at the KPMG event primarily focused on the challenges and transformations within the energy sector during turbulent times, emphasising the need for resilience and adaptability among large energy corporations.

KPMG has released a report today at the event, highlighting various facets of GCCs that are entering India and their transformation. The report offered a clear roadmap for energy organisations to pivot from legacy structures to agile, digitally enabled, and future-ready enterprises--placing GCCs at the heart of next-generation energy transformation.

"Besides the typical town, big towns, what we are now seeing is that the trend is Tier II, Tier III cities also becoming important. Of course, because of cost advantage, but also access to talent pools and so on. I don't have the job numbers handy, but if large corporations shift their big base and big processes here, you can see the impact it can create on job creation," he added.

As of 2024, there are about 1700 GCCs in India. This, according to Gaba, is projected to grow to about 2,400 by 2030, employing 2.8 million people. "That is the impact it can create," he concluded.

GCCs are offshore facilities set up by multinational corporations to manage a variety of business functions and processes for their parent organisations.

- ANI

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Reader Comments

R
Rohit P
Great to see Tier II and III cities getting attention. This will help reduce the pressure on metros and create opportunities across the country. Hope the infrastructure keeps pace with this growth!
A
Aditya G
While the numbers look impressive, I hope companies focus on quality jobs rather than just quantity. We need more R&D and innovation roles, not just back-office work.
S
Sarah B
Working with Indian GCC teams from our US headquarters - the talent and work ethic here is exceptional. Time zone advantage makes collaboration so much smoother compared to other offshore locations.
K
Karthik V
2.8 million jobs by 2030 is massive! This could transform our economy. But we need to ensure our education system produces industry-ready talent to meet this demand.
M
Michael C
Our company set up a GCC in Hyderabad last year. The quality of engineers and the innovation coming out of that center has exceeded all expectations. India is definitely the right choice for global capabilities.

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