The Finance Minister urged industry & government to work together to boost the setup of GCC and attract more Fortune 500 companies which are yet to establish their presence in India. (On an average 1 new GCC per week was set up in the year 2024)
Status of GCC in India
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About GCCs
- It is also known as global in-house centres or captives (GICs).
- GCCs are offshore centres established by global firms to provide various services to their parent organisations.
- E.g. IT services, Research and Development (R&D), customer support
- They operate within the internal organization structure of the global corporate organization.
- Major Drivers in India: Cost efficiency, Digital and Policy Readiness (e.g Smart Cities, Digital India), Talent availability (Highly skilled & cost-effective workforce with English proficiency), Large Consumer Market etc.
Challenges in development of GCCs in India:
- Limited availability of skilled workforce (in Tier-II and III cities), Infrastructure gaps (physical and digital connectivity), Complex regulatory structures, cybersecurity threats.
Strategic Interventions Required
- Embrace Next-Gen Technologies: e.g. AI, automation, cloud computing etc.
- Navigate Geopolitical Complexities: Adopt agile governance models to respond swiftly to complex geopolitical scenarios and resulting regulatory uncertainty.
- Redefine Workforce Strategies: Upskilling of talent, adoption of new-age skills and hybrid work models.
- Sustainability: Aligning GCCs with environmental, social, and governance (ESG) goals.