Mid-sized Global Capability Centers (GCCs) are seeing exceptional growth in India, outpacing the entire GCC industry with a compound annual growth rate (CAGR) of 6.2%, higher than the market average of 4.5%, according to a report published on Thursday.
The Inductus GCC survey finds that India will add over 120 new mid-sized GCCs by 2026, potentially creating 40,000 new employment opportunities. This growth will be on top of the current network of over 800 centers in India, which together employ 220,000 professionals.
The GCC mid-market segment in India is projected to witness a revenue growth of 15-20% from 2024 to 2026, reflecting strong faith by global businesses in such operations. These centers, having between 200 to 1,000 professionals, are fast emerging as the go-to choice for organizations seeking niche expertise and operational flexibility.
In the survey, they also discovered that 65% of mid-size firms intend to grow their GCC investments within two years, with the realization of how crucial such centers are towards propelling innovation strategy.
Firms are enjoying significant cost reductions of 30-40% by using Indian GCCs as opposed to other international locations. This allows for businesses to reallocate the savings towards innovation and other strategic endeavors. As of 2024, mid-market GCCs account for close to 50% of the overall GCC ecosystem in India, which highlights their increased prominence.
The Noida and Greater Noida areas within the Delhi-NCR region are becoming a major hub for such centers, generating significant economic benefits through job opportunities, infrastructure development, and growth of ancillary services. The expansion of these centers to tier-2 and tier-3 cities is also increasing local employment and regional economic growth.
The survey also brought to the fore the prevalence of disruptive technologies in mid-sized GCCs. AI and ML are being applied for automation and predictive analytics, while Cloud Computing has seen over 70% adoption, with scalability and remote operations being facilitated. Stronger cybersecurity measures are protecting sensitive operations, and IoT usage is increasing in certain industries.
Inductus CEO Alouk Kumar said, "Mid-sized GCCs have evolved from mere cost-reduction centers to being strategic innovation centers that drive core business functions. Our research plainly indicates that for most corporations, the preferred model today is in these nimble, expert operations that can provide specialized capabilities without the risk of the larger-scale centers."
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