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The growth of Global Capability Centres (GCCs) in India fuels various sectors and contributes significantly to the economy

2024-06-20 00:58:20.753000

Large Indian companies and multinational corporations (MNCs) are increasingly looking beyond their borders to fill CEO and CXO positions, with a particular focus on specialist roles in high-tech sectors such as automotive and pharmaceuticals. The demand for professionals with expertise in data centers, cloud computing, electric vehicle (EV) technologies, and a deep understanding of global markets is driving this trend. The article also highlights the growing demand for returning Indians with international experience, especially in areas like digital transformation, environmental, social, and governance (ESG), sustainability, green hydrogen, solar energy, EV, and financial services. This shift in hiring strategy is partly due to the shortage of leadership talent in the Indian market and the need to recruit for specialized positions in various industries. Over the past six to 18 months, 30-50% of CXO searches have been focused on potential global candidates, a significant increase from 10-15% in previous years. Leadership search firms are actively reaching out to candidates in Singapore, the United States, Canada, London, and the Middle East. The article also notes that about one in three leadership searches now have a global scope, indicating a growing preference for global professionals not only in CXO roles but also in technology, human resources, and other functions [5f60a02f].

US mid-sized companies are setting up Global Capability Centres (GCCs) in India to navigate high inflation and talent shortages. Property consultant Cushman & Wakefield has established a GCC advisory practice to assist these companies. The services offered by GCCs include executive compensation, hiring, taxation, legal, banking, and IT solutions. About 40% of GCCs set up in India in the last two years are global research and development and innovation centres. Two-thirds of the GCCs set up in India over the last two years are small first-time entrants. India is expected to capture a share of 60-75% of GCCs by 2030, with 2400 GCCs up from 1600 now. The demand for GCCs in India is driven by cost arbitrage, availability of high-tech talent, innovation capabilities, lower real estate costs, and policy support [3e3a6c3c].

The growth of global capability centers (GCCs) in India is fueling various sectors and contributing significantly to the economy. Currently, over 1,600 GCCs are generating cumulative revenue of about $46 billion and employing an estimated 1.5 million people across India’s major cities. GCCs are becoming strategic assets for companies and investors, driving innovation and job creation across industries [9aa1b39a].

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