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India continues to be one of the most favourite destinations for GCC
As companies across the world try to create a sustainable digital transformation ecosystem, they are looking for new-age talent and digital skills to help them. As per an estimate, approximately 2.1 million+ graduates join the workforce in India each year[¹]. A recent report by NASSCOM mentioned that India-GCC revenue can potentially scale up to US$60 to US$85 billion by 2026, which stood at US$33.8 billion in 2019-20; about 1% of India’s GDP[²].
Some of the key points that reaffirm India’s dominance in the GCC space are:
- India is already home to 1500+ GCCs
- GCCs in India employ ~1.3 million people
- Indian GCC market has grown at a steady pace of ~11% CAGR from 2015 to 2021
- 500+ GCCs are expected to be added by 2026
Many executives believe that India is not just a labor arbitrage move anymore but having an India-based GCC has evolved as an imperative for digital transformation. As the GCCs focus has shifted from increasing productivity to building enterprise capabilities and transforming middle and front office; an increasing number of organizations are setting up Research and Development (R&D) centers and innovation labs in India, owing to the abundant and diverse skill-sets available across Tier-1 and Tier-2 cities.
Why choose a Tier-2 city?
Increased talent availability at reduced costs with an improving infrastructure and social security is creating a much sought-after business ecosystem for GCC expansion in Tier-2 cities.
Organizations ranging from IT and professional services to financial services, manufacturing, and technology companies are incentivized to set up their GCCs in Tier-2 cities by state governments through favorable policies and schemes. Many companies have already opened up GCCs in Visakhapatnam, Coimbatore, Jaipur, Vadodara, Kochi, Chandigarh, and other locations. Key services delivered from these GCCs include finance and accounting, human resources, supply chain and procurement, engineering, R&D and quality, and digital cloud and automation services.