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India will continue to be a top choice for setting up Global Capability Centres (GCCs), according to a new report by PwC.
The report mentioned that the global companies are showing a strong commitment to keeping their operations in India, with less than 25 per cent of business leaders surveyed considering moving their GCCs out of the country. Instead, they are focusing on expanding and upgrading these centres to become global sourcing hubs for IT and business processes, especially by using artificial intelligence and digital technologies. The report stated, "India will continue to be a premier destination for setting up GCCs, with global companies committed to maintaining their presence in the country". As per the data, India is expected to see the addition of over 150 new GCCs in the coming years. To support this growth, national and state governments must increase investment in infrastructure. This will help strengthen the overall GCC landscape in the country and make it more competitive. The report added, "The national and state governments therefore need to intensify investments in infrastructural development to bolster the Indian GCC landscape". It also highlighted that leaders from both headquarters and Indian GCCs, across product and service-based companies, have shared suggestions with the government on how to make India a more attractive destination for these centres. These suggestions include steps to improve ease of doing business, technology infrastructure, and regulatory support. GCCs in India have grown over the years from being cost-saving units to becoming innovation-focused and multifunctional centres of excellence. Today, they are playing a central role in their headquarters' global growth strategies. The report described them as "cost-conscious innovators" that are now key to India's transformation into a global digital powerhouse. The report also pointed out that by implementing the recommended steps, the value generated by Indian GCCs could increase significantly. Currently, GCCs are expected to deliver a value growth of 11-12 per cent during FY25 to FY29. With proper actions, this could rise to 14-15 per cent, resulting in a weighted average compound annual growth rate (CAGR) boost of 3-4 per cent. The report showed a positive outlook for India's role in the global GCC ecosystem and stresses the importance of government support to maintain this momentum. (ANI)
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