THE GCC BOOM

GLOBAL CAPABILITY CENTRES, WHICH EMPLOY 2.1 MILLION PEOPLE, ARE RESHAPING GLOBAL BUSINESS MODELS IN INDIA, POWERED BY INNOVATION, AI, AND TALENT FROM EMERGING CITIES. CAN THEY TRANSFORM INDIA'S JOB MARKET?

- BY RAHUL OBEROI

India has an unemployment problem. Its gross domestic product (GDP) growth numbers often mask issues such as quality of employment due to skill shortages. The growth and large-scale expansion of global capability centres (GCCs) in India could be the answer for job seekers.

The beginning of the Indian GCC story can be traced back to the mid-1990s when multinational companies (MNCs) started setting up back offices in India. Few could have predicted the scale and significance they would attain in the next few decades. These have evolved into GCCs that are not just offshore support units for global businesses but doing high-value work for their global parents. The trickle that started in the 1990s has become a wave and made India the GCC capital of the world hosting more than 45-50% of all GCCs, according to EY India.

GCCs in India are driving innovation, shaping products, leading digital transformation and playing a key role in the growth of the economy and India Inc. The country is home to more than 1,800 GCCs, employing 2.1 million professionals, as per a report by Talent 500, a platform that connects talent with opportunities at GCCs. The report said that they have started contributing to the India growth story, as these centres contribute more than 1.5% to India’s GDP, with their share expected to grow further in the coming years.

The outlook for the growth of GCCs looks strong considering India’s demographic dividend, government policies and a large and skilled talent pool. While demographic dividend could be an advantage, the lack of skilling could be the biggest challenge for GCCs, which have emerged as a strategic powerhouse for global business operations.

INDIA FOR THE WORLD