Trends Driving Non-US Companies Establishing GCCs in India

Initially, US companies were the primary drivers to set up their GCCs , seeking cost-effective operations and access to India's skilled workforce. However, this trend has now broadened to include non-US companies as well. In recent years, India has emerged as a prominent destination for non-US companies establishing their GCCs, further solidifying India's status as a global hub for business operations.

Geographic Insights

Americas: The growth of GCCs from North America – predominantly the US – has been noteworthy, with numbers reaching over 1,025 by FY2023.
EMEA: European and Middle Eastern entities are increasingly establishing GCCs in India. Among these, European firms, which now hold a significant share second only to US-based GCCs, are utilising India's skilled workforce, competitive costs and favourable business environment to improve global operational efficiencies.
APAC: The APAC region is increasingly viewing India as a prime location for establishing GCCs due to several strategic advantages. These include the availability of a large tech talent, robust digital infrastructure, and a thriving start-up ecosystem.

Geographic Regions	FY21	FY22	FY23
Americas	930	981	1025
EMEA	386	412	434
APAC	114	117	121
Source: Fortune India News

GCC Units Distribution by Countries Between Q1 2023 to Q1 2024

Country	GCC Units	Country	GCC Units
United States	68	Netherlands	2
United Kingdom	10	Spain	1
Germany	7	Denmark	1
Japan	7	Luxembourg	1
Canada	3	Austria	1
France	3	Finland	1
Switzerland	3	Sweden	1
Ireland	3
Australia	2
Taiwan	2
It is comprised of 116 GCC units recorded from Q1 2023 to Q1 2024, sourced from NASSCOM, industry reports and news articles.

Key Reasons

Skilled Workforce

India is renowned for its large pool of highly skilled IT professionals and graduates, particularly in fields such as engineering, computer science and business management. This talent is not only abundant but also comes with advanced digital capabilities, including expertise in AI, data analytics, automation and cloud computing. The availability of such a skilled workforce is a significant draw for companies looking to innovate and stay ahead in the digital transformation race.

The Indian tech industry's workforce, consisting of core and digital tech professionals, surpasses 4.6 million, representing more than 80% of the industry's total workforce. From March 2021 to March 2023, there has been a compound annual growth rate (CAGR) of 7-8%, with the total tech industry employee base increasing from 4.65 million to 5.39 million.

Fresh Talent Pool Availability

In the academic year 2022-23, India was one of the world leaders in the supply of STEM graduates, with a notable annual output of 2.5 million. This figure includes a significant proportion of female graduates, with their diversity ratio being among the highest globally, ranging between 43% and 48%. Moreover, the contribution of India's Tier 2 and Tier 3 cities is substantial, as around 60% of the country's engineering, arts and science graduates come from these areas, reflecting the widespread educational growth beyond the major urban centres.

Total Graduates (UG and PG) Supply by Field of Study – India (2022 – 2023)

Infrastructure and Ecosystem

Operating GCCs in India is substantially more cost-effective compared to developed countries. Factors such as lower salaries, real estate costs and favourable exchange rates contribute to significant operational cost savings. This economic advantage allows companies to maintain high-quality output while optimising expenses. When it comes to salary comparisons, India offers a cost-effective advantage for GCC operations compared to many developed countries. For instance, the average monthly net salary after tax in India is approximately USD $612.44, which is markedly lower than in countries such as Switzerland, Luxembourg and other European countries.In Switzerland, the average monthly net salary is around $6,510.25; in Luxembourg, it's approximately $5,267.92; and in the US, it stands at about $4,556.96. Such disparities underscore India's position as a cost-effective GCC destination, where companies can optimise operational expenses without compromising the quality of output.