Why in news?
In recent months multinational companies’ Global Capability Centres (GCCs) in India have been hiring at a pace far outstripping traditional IT services firms. Media reports highlight that these centres are adding talent four times faster than domestic tech companies and now employ around two million professionals. Forecasts suggest that more than 90 new GCCs were set up in 2025 and the total number of centres could cross 2,400 by 2030.
Background
Global Capability Centres are offshore units established by multinational corporations to handle high‑skill functions such as product design, research and development, data analytics, artificial intelligence and customer support. They were once known as “captives” because they carried out back‑office work exclusively for the parent company. Over the past decade GCCs have evolved into innovation hubs that drive core business processes and technology solutions. India hosts the largest concentration of these centres, thanks to its large pool of skilled engineers, competitive costs and supportive policy environment.
Key points
- Rapid job creation: According to industry analyses, GCCs are expanding headcounts by 18–27 percent a year, compared with about 4–6 percent in traditional IT services. They are projected to create roughly 300,000 jobs annually as they adopt emerging technologies.
- Scale and growth: India is home to roughly 1,850 GCCs today, employing almost two million professionals. Over 90 new centres were established in 2025 alone, and industry bodies estimate there could be 2,400 or more centres by 2030.
- Changing roles: Many GCCs now take ownership of end‑to‑end product development, cyber security, cloud infrastructure and artificial intelligence projects. They are no longer limited to cost‑saving support functions.
- Economic impact: GCCs contribute to the growth of India’s digital economy by investing in talent development, research and startups. They also provide high‑paying jobs in tier‑2 cities as companies diversify beyond major metros.
Significance
- Strengthening India’s tech ecosystem: GCCs encourage knowledge transfer from global firms, helping build expertise in cutting‑edge domains such as artificial intelligence, data science and aerospace engineering.
- Creating quality jobs: The rapid expansion of GCCs offers employment opportunities for young graduates and mid‑career professionals with specialised skills. This helps offset slower hiring in traditional IT sectors.
- Boosting innovation: By undertaking research and product development locally, GCCs contribute to patents, products and solutions that are designed in India but used worldwide.
- Diversifying investment: Companies from sectors as diverse as pharmaceuticals, banking, automotive and retail are setting up GCCs, spreading investment across different regions and industries.
Conclusion
The surge in Global Capability Centres underscores how India’s knowledge economy is shifting from low‑cost outsourcing to high‑value innovation. As more multinational corporations choose to base advanced functions in India, the country has an opportunity to become a global hub for digital engineering and research. Ensuring a steady pipeline of skilled talent and a supportive regulatory environment will be crucial to sustaining this momentum.
Source: The Hindu
