The Rise of Global Capability Centres in India
India has been a hub for IT services for quite some time now. However, over the past decade, there has been a significant shift in the nature of these services. From being just an offshore development center, India has evolved to become a hub for global capability centers (GCCs). These centers are an integral part of the digital ecosystem and are playing a critical role in shaping the future of work.
What are Global Capability Centres?
Global Capability Centers are offshore centers of companies that provide specialized services in support of their global business operations. These centers are not just a cost-saving measure but are also key to building core competencies and driving innovation in the company. They enable companies to leverage India’s talent pool to build strong capabilities in technical and non-technical domains.
The Growth of GCCs in India
The growth of GCCs in India has been exponential over the past decade. According to a report by Nasscom, there are over 1250 GCCs in India, employing over 1.5 million people. Companies like Goldman Sachs, Deloitte, Facebook, and Microsoft have all set up their GCCs in India.
One of the key drivers of this growth is the availability of a skilled workforce. India produces over 3 million graduates every year, with a considerable number of them being engineers. This has created a vast talent pool of engineers, data scientists, and other technical experts who are in high demand across the world.
The Benefits of GCCs for Companies
GCCs provide a range of benefits for companies. They allow companies to bring together diverse skill sets and expertise from across the organization to build core competencies. They also provide access to a large talent pool that enables companies to quickly scale up their operations while maintaining flexibility. This has enabled companies to build their own specialized teams that can work on specific projects and technologies, helping companies to gain a competitive edge.
Another significant benefit of GCCs is cost savings. Companies can save up to 40% on operational costs by having a GCC in India. This is because of lower salaries and overheads, along with favorable government policies.
The Impact of GCCs on India’s Economy
The growth of GCCs has had a positive impact on India’s economy. Not only are GCCs creating employment opportunities, but they are also driving innovation and creating a knowledge-based economy. GCCs are also helping to bridge the skills gap by providing training and upskilling opportunities to their employees. This has helped to develop a skilled workforce that is in high demand globally.
Conclusion
Global Capability Centres have played an important role in shaping India’s digital ecosystem. They have enabled companies to leverage India’s talent pool to build core competencies and drive innovation. GCCs have also had a positive impact on India’s economy, creating employment opportunities, driving innovation, and creating a skilled workforce. All of these factors combined have made India an attractive destination for companies looking to set up their GCCs.
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