8 Reasons Why India is the Hotspot for New GCC Setup

Why are so many large international corporations establishing their unique business and technology hubs in India? Previously, the focus of Global Capability Centers (GCCs) was just on cost reduction. However, they are now in an extremely significant position where businesses create new products, employ intelligent individuals, and ensure the seamless operation of their global operations.

In terms of these, GCC in India has genuinely risen to the top. India is the greatest location for businesses wishing to expand or establish their teams for a variety of reasons. Let’s examine 8 main reasons for India being the hotspot for the new GCC setup.

1. India's Tremendous Skilled Workforce

The enormous amount of intelligent, enthusiastic people in India is one of the primary factors. Millions of students complete their graduate degrees each year, particularly in STEM fields (science, technology, engineering, and math). In fact, India produces one of the highest numbers of engineering graduates worldwide every year, more than 1.5 million. Also, many of them are proficient in English, which enables working together with companies globally. Such skilled individuals are not just simply carrying out regular tasks; they also are turning into experts in innovative areas like data analysis, machine learning, and artificial intelligence.

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2. Excellent Value for the Money

You receive a lot of value for your money when you set up a GCC in India. It’s not just about being “cheap.” You save money on things like salaries, office space, and power when compared to Western nations. The goal is to complete excellent work at a very competitive cost. Global capability centers in India provide excellent talent, and far more reasonably priced infrastructure may be found even in large cities like Hyderabad or Bengaluru, and even more so in smaller ones.

3. An Ecosystem in Good Development

India has hosted GCC as a service for more than thirty years. A solid support network has been established as a result of this extensive expertise. Numerous businesses assist with office management, hiring the best candidates, and ensuring that GCCs function properly in general. This means that new businesses can plug into an established, well-oiled engine that has accumulated a wealth of best practices over the years, rather than having to start from zero.

4. Strong Digital Backbone

Imagine trying to run the operation of global business services without good internet or reliable power! India has invested heavily in its digital setup. We have modern tech parks, dependable internet connections, and widely used digital platforms. This strong digital infrastructure ensures that teams in India can connect seamlessly with their global counterparts, work together on projects, and keep data safe and secure. India’s digital payment infrastructure, for example, is world-class and widely adopted.

5. Government Support and Helpful Policies

The Indian government is very keen on attracting more businesses. They have policies that make it easy for foreign companies to invest here, like allowing 100% foreign direct investment (FDI) in many sectors. There are also special tax benefits in areas called Special Economic Zones (SEZs), where many GCCs are located. Initiatives like “Digital India” also align perfectly with what GCCs aim to achieve.

6. A Hub for Innovation and New Ideas

Indian GCCs are no longer just doing basic support work. They have transformed into centers of innovation. Companies are now developing new products, software platforms, and even patents from their India centers. They’re setting up specialized teams focused on cutting-edge areas like AI and machine learning, turning India into a true hub for research and development.

7. Easy to Grow and Be Flexible

The huge talent pool and growing infrastructure lead companies to easily start small with their GCCs in India and then quickly grow them as their business needs change. This flexibility is really important. If a company wants to try out a new project or needs to quickly hire many people for a new function, India makes it simple to scale up operations without much hassle.

8. The Time Zone Advantage and Always-On Operations

India’s time zone is actually a big plus. When teams in the US or Europe are finishing their day, teams in India are just starting. This allows for a continuous workflow, almost like a 24-hour operation. This ‘follow-the-sun’ model means work can keep progressing around the clock. This also makes GCCs in India crucial for keeping businesses running smoothly, especially during unexpected global events like the recent pandemic.

Conclusion

So, it’s clear that there’s a powerful combination of advantages for companies looking to set up Global Capability Centers in India. From its immense talent pool and cost-effectiveness to its robust digital infrastructure and supportive government, every factor points towards India as the top choice. As the world becomes more connected, India’s role as a strategic innovation and operational hub will only continue to grow, making it the go-to destination for global businesses.

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Looking to set up a new GCC? Contact Inductus GCC. We have a strong network of industry partnerships that drives transformational outcomes. The team is specialized in specific fields to help you reach from just an idea to a powerful global impact. Rest assured, it is a worthy investment to catalyze innovation and maintain a competitive advantage in the market. We offer an unbeatable combination of talent, infrastructure, and cost-effectiveness, making it the ultimate hotspot.

frequently asked questions (FAQs)

Is India still cost-effective for GCCs, or have costs increased significantly?

India continues to offer significant cost advantages compared to Western economies. The “cost-to-value” proposition remains strong, as companies gain access to high-quality talent and robust infrastructure at competitive rates, particularly when considering Tier-2 cities as well.

Does the Indian government actively support the establishment of new GCCs?

Yes, the Indian government is very supportive of foreign investment and GCC growth. They offer various incentives, including favorable FDI policies, tax benefits in Special Economic Zones (SEZs), and initiatives like “Digital India” that create a conducive environment for global businesses.

Are GCCs in India primarily focused on IT functions, or do they cover other areas?

While IT and software development remain core strengths, GCCs in India cover a wide spectrum of functions. This includes finance and accounting, human resources, legal, procurement, engineering design, R&D, data analytics, digital marketing, and customer service, among others.

What challenges might a new GCC face when setting up in India?

Potential challenges can include navigating local regulations, managing cultural nuances, ensuring robust data privacy and security (though India has strong laws), and competitive talent acquisition, especially for niche skills. However, the mature ecosystem often provides solutions for these.

What is the future outlook for GCCs in India?

The future looks very promising. India is expected to continue being a major growth engine for GCCs, driven by increasing demand for digital transformation, specialized talent, and innovation capabilities. The focus will further shift towards higher-value, strategic roles and the expansion into Tier-2 and Tier-3 cities.

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Aditi

Aditi, possessing an excellent background in forensic science and biotechnology, adds an innovative scientific perspective to her work. She has published a research paper and numerous articles on a variety of topics, demonstrating her excellent analytical skills and fondness of narrative supported by facts. She is an outstanding writer in both technical and creative fields and has the ability to transform difficult subjects into readable stories.