Among those setting up base are QSR companies such as Yum Brands and Starbucks, media and entertainment firms Warner Bros and Discovery, as well as hotels chain Marriott International, energy giant Chevron and smaller firms such as US K-12 education software and content provider Curriculum Associates.
Several are turning to tier II destinations, apart from the likes of Bengaluru and Hyderabad, to gain from robust talent pools and lower cost of operations. “Traditionally, India has seen a lot of GCCs in BFSI (banking, financial services & insurance), retail, healthcare and life sciences, manufacturing and automotive industries,” said Vikram Ahuja, founder of ANSR.
“In the past few years, especially after Covid, we have seen a lot of newer industries setting up their centres in India,” said Ahuja, whose consultancy firm helps foreign companies set up GCCs.
Typically, these centres function as offshore support units for parent firms — offering IT, finance, customer support, business process management and research functions. For some of the new global entrants, these GCCs, or research and
development centres, mark a foray into India.
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In August, Dublin-based online sports betting and iGaming firm Flutter Entertainment opened its new GCC in Hyderabad, with an investment of $3.5 million (`29 crore). In October, Marriott International said it is establishing a tech accelerator in Hyderabad, due to open in early 2025, marking its first overseas GCC.
“We view this as complementary (to our overall strategy), so we have great talent around the world, in different places,” Drew Pinto, executive vice president and chief revenue & technology officer, Marriott International, recently told ET. The number of GCCs set up in India increased to 1,700 in fiscal year 2024, generating $64.6 billion in export revenue, and employing over 1.9 million people, according to the latest Nasscom-Zinnov India GCC Landscape report.
Change game
Older GCCs are leveraging India’s cybersecurity talent for advanced threat prevention, while newer GCCs are focused on global and emerging market solutions, the report noted. Further, new generation platforms, products and technologies are being developed in industries like aerospace, defence and semiconductors.
The majority of research centres are being established in key tier I hubs such as Bengaluru and Hyderabad. “These cities, long recognised for their robust ecosystems, offer a unique advantage due to the concentration of service providers’ talent pools and thriving Indian product companies,” said ANSR’s Ahuja. “However, newer centres are being set up in Bhubaneshwar, Noida and Ahmedabad,” where we’ve seen research and development and innovation being established.”
Even relatively smaller firms are hopping on. Curriculum Associates, which has a $800 million revenue, opened its first GCC in September, in Bengaluru, with plans to hire in hundreds in the next few years. “We are here for talent and access to world-class talent, to make us go even faster and help our growth more, to make classrooms better places for teachers and kids. That is my principal reason,” said Rob Waldron, its chief executive. “Meeting peers with GCCs here motivated (us) to set up technology operations in India. There is (even) more creative and innovative talent here than people give it credit for.”