Summary
India's Global Capability Centres (GCCs), like Tesco's back-office operations, have expanded significantly, now performing complex tasks such as data analysis and store design for countries like the UK. These centers face challenges from global trade barriers but are expected to continue growing, with India's large pool of skilled workers driving this expansion. Many multinational companies now have GCCs in India, contributing substantially to the economy.
Key Facts
- India's GCCs employ two million people and generate $65 billion in revenue each year.
- Tesco, a UK retailer, has expanded its Indian operations to include complex tasks like data analytics and store design.
- The number of multinational companies with GCCs in India has increased from 700 in 2010 to over 1,700 recently.
- GCCs in India do not just provide cost savings but also use the skilled workforce to add value.
- Trade barriers and protectionism are potential challenges for these centers.
- India's expertise in areas like AI and data analytics makes it a desirable location for GCCs.
- The Indian government and local states support the growth of GCCs, encouraging expansion beyond major cities.
- About 31% of India's office leasing demand last year came from GCCs, contributing to a property boom.
