India has been a significant destination for Global Capability Centers (GCCs) due to a combination of factors. Here’s an overview of the GCC landscape in India:
- Historical Context: India’s rise as a favourite destination for GCCs began in the 1990s and early 2000s. This was fuelled by the IT outsourcing boom, where global companies started recognizing India’s potential in providing quality IT and business process outsourcing (BPO) services.
- Talent Pool: India has a vast pool of educated, English-speaking professionals. With a strong emphasis on technical and management education, the country produces a large number of graduates suitable for various roles in GCCs every year.
- Cost Efficiency: Labour and operational costs in India are typically lower than in Western countries. This makes it attractive for companies to set up GCCs for cost arbitrage.