India's energy GCC growth

Harnessing the growth of India's energy GCCs in the global energy transition

India's Global Capability Centers are pioneering a sustainable energy future, fueled by cutting-edge innovation and a robust talent ecosystem.


In brief

  • Global Capability Centers in the energy sector are pivotal as India leads the digital transformation in energy.
  • India's role in the global energy transition is underscored by its rapid energy GCC growth and tech advancements.
  • India's energy GCCs are capitalizing on renewable energy GCC opportunities, merging sustainability with digital innovation.


Dynamic global energy sector
1

Chapter 1

Dynamic global energy sector

Energy giants are pivoting to renewables as fossil fuel demand nears peak, reshaping markets and global strategies.

The global energy sector is currently experiencing saturation in traditional fossil fuel markets, with a demand for coal, oil, and natural gas expected to peak by 20301. This shift is encouraging major energy companies to seek expansion opportunities globally, particularly in emerging markets where energy consumption is on the rise. With global renewable capacity expected to grow 2.7 times by 2030 compared to 20242, these firms are increasingly investing in renewable energy sources, recognizing the need to transition towards more sustainable energy solutions to meet both regulatory pressures and consumer expectations.

To facilitate this transformation, many companies are setting up operations in low-cost countries, leveraging cost advantages associated with labor and resources. For instance, firms are establishing manufacturing and operational hubs in regions such as Southeast Asia and Africa, where they can optimize production costs while tapping into local markets. This strategy not only enhances operational efficiency but also allows these companies to contribute to local economies through job creation and technology transfer.

As the energy landscape evolves, collaboration among industry peers will be essential to navigate challenges such as supply chain disruptions and regulatory complexities. The focus on renewable technologies is expected to reshape market dynamics significantly, with projections indicating that renewables could account for nearly 90% of global electricity generation by 20503. This shift underscores the urgency for companies to adapt their strategies and embrace innovation to thrive in an increasingly competitive environment while contributing to global decarbonization efforts.

Sustainable energy solutions
2

Chapter 2

India’s robust energy landscape

India emerges as a preferred destination for energy GCCs, driven by a favourable business environment and rapid growth in the sector.

The GCC market in India has experienced remarkable growth, with the market size reaching US$64 billion and a CAGR of approximately 9.8% for FY2019-20244. Currently, India hosts over 1,700 GCCs, employing more than 1.9 million people and accounting for 55% of the global share4,5. By 2030, it is anticipated that India will have around 2,200 to 2,500 GCCs, with a market size projected to surge to US$110 billion and total employment rising to 2.8 million4. This evolution has transformed GCCs from cost-effective outposts into pivotal centers for innovation and delivery excellence.

Figure 1: Key factors fueling India’s GCC potential in the energy sector

Sustainable energy solutions

India is one of the leading GCC destinations globally and is the preferred destination for driving an organization's GCC journey, with multiple options across Bengaluru, Mumbai, Pune, Delhi NCR, Hyderabad, Chennai, and others. These locations boast a combination of readily available skilled talent, cost-effectiveness, state-of-the-art infrastructure, and a deep reservoir of digital and innovative capabilities. This confluence of favorable conditions is driving a growing number of enterprises to choose India as the locus for initiating and scaling their GCCs in the energy sector. India’s energy GCC growth, in particular, is experiencing a notable surge and evolution.

Bridging the gap between India's burgeoning GCC landscape and its comprehensive energy sector is a story of synergy and innovation. India hosts more than 30 energy sector GCCs, with centers spread across the country dedicated to driving innovation through digital transformation and automation4. Energy industry leaders have established a considerable presence in Indian cities like Bengaluru, Chennai, and Pune. These corporations are leveraging India's strengths to streamline their operations and improve their processes in energy production and distribution, making a significant contribution to the global energy infrastructure modernization.

In addition to the global ecosystem, the narrative of the energy sector in India is comprehensive as well, spanning the entire spectrum from initial exploration and production to the transportation, refining, and distribution stages. Prominent Indian corporations dominate the upstream exploration, whereas a select group of pivotal companies specialize in the midstream transportation. In the downstream arena, notable entities excel in refining and marketing, completing the sector's comprehensive landscape. Beyond the traditional energy sphere, India is also forging ahead in renewable energy, with companies spearheading investments in solar and wind projects, tapping into renewable energy opportunities. 

With its extensive GCC network, a diverse and expansive energy sector, and a steadfast commitment to sustainable energy solutions, India is not just participating in the global energy narrative but shaping it as a leading player, emphasizing its role in the global energy transition.

Energy industry's digital transformation
3

Chapter 3

Comprehensive GCC service portfolio

Energy GCCs are augmenting their service portfolios across business, knowledge and innovation services.

Energy companies initially established GCCs to bolster their business services and corporate functions, including finance, human resources, IT, supply chain, procurement, and operations. These GCCs, integral to the energy industry's digital transformation, have broadened their scope to encompass knowledge and innovation services such as master data management, legal and compliance, Environmental, Social, and Governance (ESG) and Health, Safety, and Environment (HSE) agendas, automation, and cloud services. Today, they have advanced to cover core energy services, reflecting the growth of India’s energy GCCs, including engineering, energy analytics, subsea operations, subsurface exploration, integrity management, and downstream services.

Figure 2: Service portfolio of an energy sector GCC

Energy industry's digital transformation

GCCs leverage the large talent pool in engineering, R&D, and laboratory functions across their portfolios, integral to India’s energy GCC growth. Key activities include, 2D/3D digital engineering, brownfield/green engineering, turnaround management, geophysics operations and petrophysical studies. Earlier, global parent organizations focused on energy center of excellences (CoEs) in asset management and regulatory affairs. However, the focus has now shifted towards decarbonization, clean energy transition, and fuel logistics to align with the ever-evolving energy landscape.

Figure 3: Offshoring potential across the energy services value chain

Global energy transition
Global energy transition
4

Chapter 4

Abundant skilled workforce

India’s energy GCCs thrive on a skilled STEM workforce, driving innovation in renewables and clean energy.

India’s energy sector is powered by a diverse and skilled workforce with 2.5 million STEM graduates6 and 1.5 million engineering students graduating annually7. Over 15 Indian universities offering engineering programs are ranked among the top 500 in the world, alongside prominent oil and gas-focused institutes and over 3,500 colleges with dedicated specializations in electrical, mechanical, chemical, and instrumentation engineering. According to research conducted by EY, more than 20,000 people are employed in energy GCCs, which are pivotal for innovation and responding to increasing energy demands.

India excels in the energy industry, with major corporations leveraging the country’s robust educational and vocational training landscape to attract and prepare a highly skilled workforce. The sector offers diverse roles across engineering (mechanical, electrical, chemical, civil), technical services (data analysis, process engineering, project management), research and development (with a focus on clean energy technologies like hydrogen and wind energy), health, safety, and environment (ensuring regulatory compliance), corporate functions (finance, HR, procurement, legal), and digital transformation (IT, cybersecurity, data management).

As India shifts towards cleaner energy sources, renewable energy and hydrogen have emerged as transformative forces shaping the nation’s energy future. The renewable energy sector is witnessing substantial growth, with wind energy capacity reaching 42.8 GW as of April 2023 and projected to grow to 63 GW by 20308. Also, Bengaluru is becoming a hub for professionals skilled in turbine micro-siting, GIS mapping, and aerodynamic modeling—expertise vital for advancing wind energy infrastructure. Simultaneously, the hydrogen energy sector is gaining momentum, with key talent clusters in Mumbai, Pune, Ahmedabad, and Chennai. These regions are home to professionals specializing in hydrogen blending, storage solutions, and refinery operations, all critical to supporting India’s transition to green hydrogen solutions.

The strategic convergence of renewable and hydrogen energy talent pools is transforming energy GCCs in India. The government’s push through initiatives like the National Green Hydrogen Mission, coupled with corporate net-zero targets, is driving demand for niche skills. To meet these evolving needs, organizations are adopting innovative hiring strategies, such as recruiting fresh graduates from key campuses and implementing robust in-house training programs focused on upskilling and reskilling. As the shift towards renewable energy accelerates, the need for skilled professionals will surge, presenting numerous growth opportunities and positioning India as a leader in the global energy transition and a hub for sustainable energy solutions.

Conclusion

The energy sector is navigating a transformative landscape, with India’s energy GCC growth playing a crucial role. This shift is marked by a transition to renewable energy, complex regulatory frameworks, and a push for technological innovation, including the integration of AI and smart grids. Key challenges such as increasing electricity demand and aging infrastructure are driving firms to enhance grid stability and optimize operation.

The outlook for GCCs in India’s energy sector is promising, offering new entrants a chance to leverage a favorable business environment and skilled workforce. Existing GCCs can boost competitiveness and foster energy industry digital transformation by expanding service portfolios. With India's focus on renewable energy and support for green initiatives, energy firms are uniquely positioned to drive transformation, tapping into renewable energy GCC opportunities and contributing to sustainable development in the global energy landscape.

Maheswaran R, Director – Business Consulting, EY India, Saurabh Jaiswal, Senior Manager – Business Consulting, EY India, Anukriti Aggarwal, Senior Consultant – Business Consulting, EY India, Parnika Sharma, Senior Consultant – Business Consulting, EY India have also contributed to the article. 


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    Summary

    As fossil fuel demand approaches its peak, the energy industry is embracing digital transformation through Global Capability Centers (GCCs). India's energy GCC growth exemplifies this shift, with over 1,700 centers and 1.9 million experts driving innovation and optimizing operations for a sustainable future. These GCCs play a pivotal role in India's global energy transition by advancing renewable energy opportunities and strengthening the country's competitive edge in the evolving energy market.

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