WHAT DRIVES INDIA AS GCC HUB?

High quality talent affected by slowdown at IT firms and start-ups helps global capability centres drive transformative projects for parents.

- Rukmini Rao

WHEN SOMEONE LIKE Jamie Dimon, chairman & CEO of the world’s largest bank, JPMorgan Chase & Co, speaks, the world listens. During his visit for the India Investor Summit in September, Dimon made a strong case for optimism about India and inclusion of Indian G-sec in global index funds. In August, JP Morgan had announced a massive expansion of its footprint in India, particularly its global capability centres (GCCs) in Mumbai and Bangalore.

Multinationals these days use the expression ‘capability centres’ instead of traditional ‘captives’ for their global technology development outposts. The captives were handling mainly back-office work. GCCs, in contrast, handle complex technologies and processes across the value chain. The 1,600 GCCs of multinationals generate revenues of over $46 billion and employ over 1.6 million people. In 2010, India had 750-plus GCCs with revenues of over $11 billion.