<p>The number of unique Global Capability Centres (GCC) in India has grown to 1,580 in FY23 from 1,430 in FY21, reflecting a compound annual growth rate (CAGR) of 5.9%, according to NASSCOM’s GCC 4.0 report released on Thursday.</p>.<p>India’s overall GCC market is expected to be worth $60 billion by FY25 from $46 billion noted in FY23. The industry will add up to 300 new centres in the next two years, as global companies continue to eye India as the top destination for setting up innovation hubs. It has also evolved from providing cost-effective support functions to “assuming a strategic role in fostering product innovation, driving technological advancements and spearheading initiatives for headquarter organizations,” the report said.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/nasscom-appoints-microsoft-india-head-anant-maheshwari-as-chairperson-1212871.html" target="_blank">Nasscom appoints Microsoft India head Anant Maheshwari as chairperson</a></strong><br /> </p>.<p>Most of the growth is being fueled by engineering research & development (ER&D), which comprises approximately 56% of the overall GCC revenue share, supported by India’s abundant engineering talent pool that specialises in emerging technologies like blockchain, artificial intelligence (AI) and machine learning (ML). Going forward, the digital capabilities having the most “real demand” for GCCs would be data analytics, ML, digital trust, responsible tech and customer-centric tech, said Akhilesh Tuteja, Partner, Global Cyber Security Leader, KPMG, adding that AI demand is being driven mostly by “noise.” </p>.<p>GCC focus is also being shifted from Tier 1 to Tier 2 and 3 cities due to varied factors, including a need to decongest metros like Bangalore and a reverse migration of the talent pool since the pandemic, said Shalini Pillay, India Leader - Global Capability Centres at KPMG India. Companies are following employees to their hometowns in search of a first mover advantage and cheaper labour costs, she added. Tier 2 GCC talent in FY23 stood at 71,000 out of a total 1.66 million people employed in the ecosystem. </p>
<p>The number of unique Global Capability Centres (GCC) in India has grown to 1,580 in FY23 from 1,430 in FY21, reflecting a compound annual growth rate (CAGR) of 5.9%, according to NASSCOM’s GCC 4.0 report released on Thursday.</p>.<p>India’s overall GCC market is expected to be worth $60 billion by FY25 from $46 billion noted in FY23. The industry will add up to 300 new centres in the next two years, as global companies continue to eye India as the top destination for setting up innovation hubs. It has also evolved from providing cost-effective support functions to “assuming a strategic role in fostering product innovation, driving technological advancements and spearheading initiatives for headquarter organizations,” the report said.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/nasscom-appoints-microsoft-india-head-anant-maheshwari-as-chairperson-1212871.html" target="_blank">Nasscom appoints Microsoft India head Anant Maheshwari as chairperson</a></strong><br /> </p>.<p>Most of the growth is being fueled by engineering research & development (ER&D), which comprises approximately 56% of the overall GCC revenue share, supported by India’s abundant engineering talent pool that specialises in emerging technologies like blockchain, artificial intelligence (AI) and machine learning (ML). Going forward, the digital capabilities having the most “real demand” for GCCs would be data analytics, ML, digital trust, responsible tech and customer-centric tech, said Akhilesh Tuteja, Partner, Global Cyber Security Leader, KPMG, adding that AI demand is being driven mostly by “noise.” </p>.<p>GCC focus is also being shifted from Tier 1 to Tier 2 and 3 cities due to varied factors, including a need to decongest metros like Bangalore and a reverse migration of the talent pool since the pandemic, said Shalini Pillay, India Leader - Global Capability Centres at KPMG India. Companies are following employees to their hometowns in search of a first mover advantage and cheaper labour costs, she added. Tier 2 GCC talent in FY23 stood at 71,000 out of a total 1.66 million people employed in the ecosystem. </p>
