ANSR Quarterly GCC Report: India’s Growing Role in Global Capability Centers

In the rapidly evolving landscape of Global Capability Centers (GCCs), India has emerged as a key player, commanding over 50% of the global market share. The recent quarterly report by ANSR sheds light on the unprecedented growth and transformation of GCCs, highlighting key trends and insights that are shaping the future of this sector.

Evolution Towards ‘Digital Twins’ and Focus on AI/ML

One of the standout findings of the report is the evolving nature of GCCs, which are now moving towards becoming ‘digital twins’ of their headquarters. This shift is driven by the increasing prioritization of digital capabilities, particularly Artificial Intelligence/Machine Learning (AI/ML) and Data Analytics. Surprisingly, 0% of new GCCs are prioritizing these capabilities, indicating a significant shift in focus towards digital transformation.

India’s Dominance and Growth Trajectory

India’s position as the preferred destination for setting up GCCs is further solidified by the report, with the country hosting an estimated 5,000 global leadership roles in GCCs. The sector, currently valued at $46 billion, is expected to surge to $110 billion by 2030, employing over 4.5 million professionals across 2400 GCCs. This growth is fueled by India’s abundant tech talent, robust start-up ecosystem, and continuous government support.

Key Findings and Insights

The report highlights the GCC location landscape in India, with tech hubs like Bengaluru and Hyderabad leading the pack. Other cities such as Delhi, Mumbai, Pune, and Chennai are also emerging as major GCC hubs. Additionally, Gujarat International Finance Tec-City (GIFT City) in Ahmedabad is gaining traction due to its attractive regulatory environment and top-notch infrastructure.

In terms of new GCCs, capabilities, and functions, the report notes a significant diversification in demand and capability functions, driven by sectors like Healthcare, Hi-Tech, BFSI, Manufacturing, and Retail. AI ranks in the top 3 priorities for 74% of CIOs, with 80% of GCCs focusing on digital capabilities like AI/ML and Data Analytics.

Talent trends in GCCs are also evolving, with a strong emphasis on diversity in leadership and innovation. The top five emerging skills in demand include GenAI, AI/ML, Data Analytics, Cybersecurity, Cloud Computing, and Robotics Process Automation (RPA). GCCs are investing in upskilling and reskilling programs to meet these demands, fostering an innovative and agile organizational culture.

Real estate trends in GCCs reflect India’s competitive Grade A office destinations, with major hubs projected to lease approximately 60–62 million square feet of office space by 2025. Additionally, Tier-2 cities are emerging as non-metro clusters for GCCs, offering cost savings and potential for growth.