The global economic landscape is evolving, and India is emerging as a key player in this transformation. The rise of Global Capability Centers (GCCs) in India is not only significant for the Indian market but also holds immense potential for the North American market.
India is expected to witness a surge in the number of operational GCCs from 1,600 to 1,900 by 2025. This growth is attributed to the favorable business environment, availability of talent, and cost advantages that India offers. As a retailer in Canada or North America, this development opens up new avenues for collaboration and expansion.
Key Drivers of Growth:
According to CBRE’s report, sectors such as retail, technology, BFSI (Banking, Financial Services, and Insurance), engineering, manufacturing, life sciences, automotive, and aviation are driving the leasing activity for GCCs in India. This trend is largely fueled by factors like talent availability, cost-effectiveness, supportive regulatory environment, and the imperative to increase digitization levels post-pandemic. North American firms, in particular, continue to lead the way in establishing GCCs in India, drawn by the country’s vast talent pool and conducive business environment.
Opportunities in Tier-II Cities:
The availability of talent due to reverse migration observed during the pandemic, coupled with infrastructure development initiatives, has made tier-II cities increasingly attractive for GCC operations. This presents an opportunity for retailers in Canada and North America to tap into emerging hubs outside of traditional metropolitan areas, leveraging the advantages of cost arbitrage and talent availability.
India: The Preferred Destination for GCCs:
Among the top emerging GCC hubs globally, including Brazil, Chile, China, Czech Republic, Hungary, Philippines, and Poland, India stands out as the most sought-after destination. With its favorable cost and talent attractiveness score, India offers unparalleled opportunities for retailers looking to establish GCCs and expand their operations. Moreover, the top six cities in India – Delhi, Bangalore, Mumbai, Chennai, Pune, and Hyderabad – are poised to witness robust growth in new developments, providing ample options for retailers to establish their GCCs in strategic locations.
The rise of Global Capability Centers in India presents a compelling opportunity for retailers in Canada and North America to expand their global footprint, drive innovation, and enhance competitiveness. By leveraging India’s vast talent pool, cost advantages, and supportive business environment, retailers can establish GCCs that serve as centers of excellence, driving growth and success in an increasingly competitive global market. As India continues to emerge as a preferred destination for GCCs, retailers stand to benefit from the country’s dynamic business ecosystem and unparalleled growth potential.