Indian GCC market size to grow 144% to $110 billion by 2030: EY report

Led by software exports, the Indian Global Capability Centre (GCC) market size is expected to expand over 144 per cent to $110 billion by 2030 from the current $45 billion, consultancy firm EY said in a report on Thursday. Moreover, the GCC industry is expected to hire around 2.6 million people in India by the end of this decade.

In the industry, the compounded growth from 2019 to 2023 was recorded at 11 per cent. Between 2023 and 2030, it is expected to jump to 14 per cent, the report added.

According to the "Future of GCCs in India - A Vision 2030", the average number of GCCs established annually in India is expected to jump to 115 from the current 70. It would take the total number of GCCs in the country to 2,400.

GCCs are captive centres that handle operations like back-office, support, contact centres, and IT support to enhance the productivity of its client companies.

Arindam Sen, partner and GCC Sector lead of Technology, Media & Entertainment and Telecommunications at EY India, said, "The outlook of the GCC industry remains buoyant as companies look to set up their GCCs in India. GCCs are expanding their operations across different cities in India while exploring new areas of service and hiring talent with niche skill sets. With the increasing number of global leadership roles based in India, GCCs will continue to move up the value chain through innovation, product development and digital transformation."

According to the report, the focus cities for GCC set-ups in India are Bengaluru, Hyderabad, Chennai, Mumbai, Pune and Delhi NCR. However, tier-II cities such as Visakhapatnam, Jaipur, Vadodara, Kochi, and Chandigarh are also becoming popular for new set-ups due to their improved infrastructure, favourable state policies, and lower real estate and talent costs.

Coimbatore, in particular, is emerging as the next big GCC hub near Chennai in Tamil Nadu.

Moreover, GCCs are increasingly collaborating with start-ups in India.

"In this, start-ups benefit from the market access, enterprise connect, mentoring and investments from GCCs. On the other hand, GCCs can get access to technology, and tech-driven talent and it helps them in reaching the market faster. This collaboration can help accelerate the innovation journey of GCCs in India," the report said.