18 new GCCs were set up in India during H1 CY23: Nasscom-Zinnov report

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India continues to be a hotspot for global capability centres (GCCs) with 18 new GCCs being set up in the country in the first half of this calendar year (H1 CY23), according to the latest Nasscom-Zinnov report. The half-yearly report titled 'India GCC Trends—Half-yearly Analysis H1 CY23' aims to provide a snapshot of the half-year that was, while also showcasing the maturity of the established GCCs.

Of the total number of GCCs, nine were set up in the first quarter of this year while the remaining nine were set up in the second quarter. The GCCs set up in the first quarter are Blackberry, Cockroach Labs, Cowbell, CyberArk, Storable, Truecaller, Align Technology, Berry Global, and Hy Vee. The ones set up in the second quarter are Kasmo, Mondee Holdings, Maxcess, Greenlight, Lloyds Banking Group, Brenntag, Inspire Brands, Wayfair, and Vonag.

India has emerged once again as the top choice for global companies to drive innovation, access skilled talent, groom the next generation of leaders, and build world-class products. The GCC market in India grew at a compound annual growth rate (CAGR) of 11.4 per cent and stood at $46 billion as of FY23. The total number of GCCs in India stood at 1,580 with a talent base of 1.66 million.

Notably, Tier-I cities such as Mumbai, Pune, Bengaluru, and Hyderabad emerged as key innovation hubs, welcoming the establishment of all 18 new GCCs in the first half of 2023. In parallel, Tier-II cities such as Vadodara, Nashik, Tirunelveli, Coimbatore, etc., saw the expansion of centres for established GCCs.

Approximately 83 per cent of the new GCCs established in India have all three functional areas—namely engineering and research & development (ER&D), information technology (IT), and business process management (BPM).

The Nasscom-Zinnov GCC Intensity Index rating is "Medium" for Q1 CY23 based on multiple key parameters such as the number of new GCCs, expansion of existing GCCs, industry verticals, functions, tiers, locations, headquarters locations, work profiles, etc. The same Intensity Index rating is "High" for Q2 CY23 based on the same parameters.

In H1 CY23, approximately 67 per cent of the new GCCs established in India were from the Software & Internet vertical, followed by 11 per cent each from banking, financial services & insurance (BFSI), chemicals & materials, and retail verticals.

Data science, data analytics, digital innovation, web applications, platform engineering, automation, and software development are some of the major focus areas for the new GCCs as well as the new centres for existing GCCs in H1 CY23.