Global Capability Centers (GCCs) in India are at a pivotal moment, much like the transformative journey of inFeedo's Amber, the AI Chief Listening Officer, in reshaping employee experiences. New technologies like AI, blockchain, and IoT continue to redefine the scene, and Amber is at the forefront, helping HR leaders continuously listen, act, and enable their teams.
The workforce landscape shows interesting demographics—Gen Z makes up 20% of employees while Millennials represent a dominant 70%. This mirrors the diversity of insights Amber gathers across employee journeys, ensuring that every voice is heard and acted upon.
The GCC sector offers promising prospects, especially with positive trends in talent retention. Expert projections show attrition rates dropping from 13.3% in 2023 to 11.5% in 2024. Amber's predictive people analytics play a crucial role here, identifying disengaged employees and predicting attrition risks, much like the GCCs' dedication to keeping exceptional talent.
India's massive talent pool, cost benefits, and established digital transformation ecosystem make it the top choice for global companies to set up their capability centers. Similarly, Amber's empathy-led AI overcomes biases and language barriers, increasing response rates by 10% when switching to local languages.
Let's explore how GCCs in India prepare for 2025 and look at the changing talent landscape. We'll also discuss strategies to address emerging skill gaps in this ever-changing sector, akin to how Amber adapts to the evolving needs of HR leaders.
India's GCC experience dates back to the early 2000s. Multinational corporations started these centers to save costs through back-office support, customer service, and simple IT functions. The development happened in three distinct phases:
This remarkable transformation led to significant growth. The total number of GCCs has grown to over 1,700 in FY2024, with more than 2,975 centers across the country. The sector now generates about INR 5450.98 billion in revenue and provides jobs to over 1.9 million professionals.
An India-based GCC now means more than just saving labor costs. These centers have become crucial for digital transformation, state-of-the-art solutions, and value-added operations. About 90% of them work as multi-functional centers that support technology, operations, and product engineering.
Engineering, Research & Development (ER&D) GCCs have shown impressive growth. They grew 1.3 times faster than the overall GCC growth rate, which shows a clear move toward higher-value work. India leads internationally by hosting almost 55% of the world's GCCs as of 2022.
Bengaluru, Hyderabad, Chennai, Mumbai, Pune, and Delhi NCR remain the main locations. Tier-2 cities like Visakhapatnam, Jaipur, Vadodara, Kochi, and Chandigarh are becoming popular. These cities offer strong infrastructure, favorable state policies, and lower operational costs.
EY projects exciting growth ahead. The sector could expand to 2,400 GCCs by 2030 and create jobs for 4.5 million people.
The talent landscape for GCCs in India will see a transformation as we approach 2025. Technical skills alone won't suffice anymore. These centers just need specialized expertise that combines technological prowess with business acumen, much like how Amber combines AI literacy with empathy.
AI and ML capabilities lead the priority list, with nearly 50% of companies planning to expand their GCC service portfolios over the next two years. Professionals skilled in Python, SQL, and TensorFlow are crucial for this expansion. A solid foundation in data science and analytics supports these skills. These centers plan to invest approximately INR 118,132 per employee toward generative AI initiatives in 2025.
Cloud computing expertise has become vital, as companies seek professionals proficient in AWS, Google Cloud, and Azure. The cybersecurity talent gap continues to widen. India reported roughly 40,000 job vacancies in this domain as of May 2023, while facing a national shortage of 800,000 cybersecurity professionals.
GCCs have evolved from cost centers to innovation hubs. They now need talent that can drive:
GCCs operate without sales and marketing costs, which allows them to invest more in upskilling programs. Many centers have established mutually beneficial alliances with academic institutions that offer industry-relevant courses in specialized areas.
Technology advances have created a new requirement. GCCs need professionals who understand both technical implementation and business context. Professionals who bridge this gap—combining AI literacy with strong business acumen and change management capabilities—will be most valuable.
India's competitive edge depends on redirecting its digitally skilled workforce through strategic training programs and certifications. Companies with well-laid-out learning frameworks and talent strategies will build reliable talent pipelines for the future.
India's GCC growth story is remarkable, yet finding the right talent remains one of the biggest problems. Talent management ranks as a top priority for 72% of GCC leaders. This shows how crucial this issue is for the sector's future.
The country's booming economy has created a fierce battle for skilled professionals among startups, tech service providers, and GCCs. Companies now pay higher wages, which could eat into the cost benefits that made India an attractive destination for GCCs.
The skills gap poses a serious threat. The world will face a shortage of over 85.2 million skilled workers by 2030. This shortage could lead to missed revenue of about INR 713.01 trillion. These numbers show what the talent gap means for the economy.
Leadership talent has become hard to find. GCCs now serve as strategic hubs that need strong leaders. India lacks experienced professionals who can run organizations through tough times. This forces GCCs to look for global talent or hire from other Indian industries.
The tech world changes faster every day. GCCs struggle to find and keep professionals skilled in:
Tech roles see yearly turnover rates above 15%. This disrupts work and reduces output. GCCs must create better ways to keep talent while watching costs.
Local culture matters too. GCCs must blend local cultural values to promote innovation and teamwork. This helps keep employees happy and engaged when job options are plenty.
In spite of that, India offers great possibilities. Just Uttar Pradesh alone has over 56% of its people in working age. This shows how big India's talent pool is. GCCs must tackle these challenges with smart planning to stay competitive globally.
India's Global Capability Centers are at a turning point in their technological progress. These centers have grown from simple support units into strategic innovation hubs that showcase India's tech capabilities. GCCs face major challenges in talent acquisition, especially when you have emerging technologies like AI and cloud computing. Yet they remain in a strong position to tackle these obstacles.
GCCs' success through 2025 will depend on how well they handle their talent needs while keeping costs and retention in check. Companies that focus on complete training programs and build engaging work environments will become industry leaders. The sector shows a strong future with projections of 2,400 GCCs by 2030. This could create jobs for 4.5 million people.
GCCs need to develop their workforce's leadership abilities and specialized skills. India's big talent pool and mature digital ecosystem give it an edge. This integrated approach will help India stay the preferred choice for global companies that want to set up their capability centers, much like how Amber continues to be the preferred choice for HR leaders seeking to enhance employee experiences.