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Key Points

India remains the top choice for Global Capability Centres, with over 150 new GCCs expected soon. The PwC report reveals companies are expanding these hubs with AI and digital upgrades instead of relocating. Governments must ramp up infrastructure to sustain 11-15% annual value growth. GCCs now drive innovation, transforming India into a global digital powerhouse.

Key Points: PwC Report Says India Remains Top GCC Destination Amid Growth

  • Over 150 new GCCs expected in India
  • AI-driven expansions boost global sourcing hubs
  • Govt urged to upgrade infrastructure for 15% value growth
  • GCCs shift from cost-saving to innovation hubs
2 min read

India will continue to be a premier destination for setting up GCCs; govt needs to ramp up infrastructure investment: PwC Report

PwC report highlights India's GCC dominance with 150+ new centers expected, urging infrastructure upgrades to sustain 11-15% value growth.

"India will continue to be a premier destination for setting up GCCs – PwC Report"

New Delhi, June 26

India will continue to be a top choice for setting up Global Capability Centres (GCCs), according to a new report by PwC.

The report mentioned that the global companies are showing a strong commitment to keeping their operations in India, with less than 25 per cent of business leaders surveyed considering moving their GCCs out of the country.

Instead, they are focusing on expanding and upgrading these centres to become global sourcing hubs for IT and business processes, especially by using artificial intelligence and digital technologies.

The report stated, "India will continue to be a premier destination for setting up GCCs, with global companies committed to maintaining their presence in the country".

As per the data, India is expected to see the addition of over 150 new GCCs in the coming years. To support this growth, national and state governments must increase investment in infrastructure.

This will help strengthen the overall GCC landscape in the country and make it more competitive.

The report added, "The national and state governments therefore need to intensify investments in infrastructural development to bolster the Indian GCC landscape".

It also highlighted that leaders from both headquarters and Indian GCCs, across product and service-based companies, have shared suggestions with the government on how to make India a more attractive destination for these centres.

These suggestions include steps to improve ease of doing business, technology infrastructure, and regulatory support.

GCCs in India have grown over the years from being cost-saving units to becoming innovation-focused and multifunctional centres of excellence. Today, they are playing a central role in their headquarters' global growth strategies.

The report described them as "cost-conscious innovators" that are now key to India's transformation into a global digital powerhouse.

The report also pointed out that by implementing the recommended steps, the value generated by Indian GCCs could increase significantly.

Currently, GCCs are expected to deliver a value growth of 11-12 per cent during FY25 to FY29. With proper actions, this could rise to 14-15 per cent, resulting in a weighted average compound annual growth rate (CAGR) boost of 3-4 per cent.

The report showed a positive outlook for India's role in the global GCC ecosystem and stresses the importance of government support to maintain this momentum.

- ANI

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Reader Comments

R
Rajesh K.
This is great news for our economy! 🇮🇳 But the government really needs to work on infrastructure - our roads and public transport in tech hubs like Bangalore are already bursting at the seams. More GCCs mean more jobs, but we need proper urban planning to support this growth.
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Priya M.
While I'm happy about this development, I hope these GCCs focus more on innovation rather than just cost arbitrage. We have brilliant engineers in India who can do much more than just backend work. The shift to AI and digital tech mentioned in the report is encouraging!
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Amit S.
Good to see India maintaining its position as a GCC hub. But state governments need to look beyond just Bangalore and Hyderabad. Cities like Pune, Chennai and even emerging ones like Bhubaneswar have great potential if given proper infrastructure support.
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Sunita R.
The 11-12% growth projection is impressive, but I wonder if we're doing enough to skill our workforce for these high-tech GCC roles. Our engineering colleges need to update their curricula to match industry needs. Otherwise, we might see more jobs but not enough qualified Indians to fill them.
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Vikram J.
As someone working in a GCC, I can confirm the shift from cost centers to innovation hubs. But the government needs to speed up approvals and reduce bureaucratic hurdles. Sometimes it takes months just to get basic clearances - this affects our competitiveness against other Asian markets.
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Neha P.
While GCCs bring jobs, I hope they also focus on sustainable growth. Many tech parks consume massive amounts of electricity and water. We need green buildings and renewable energy integration as part of this expansion. Otherwise, the environmental cost will be too high in the long run.

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